GAINSCO Insurance Review: Is It the Right Choice for You?

Founded in 1978, GAINSCO specializes in minimum-limits car insurance catered to high-risk drivers. The company provides SR-22 filing, flexible payment plans, bilingual customer service, and 24/7 claims handling.

But GAINSCO offers scant information about policies, coverage options, and discount opportunities online. Instead, it relies on independent agents to guide customers. Without oversight from industry standards like J.D. Power, it’s hard to get a clear picture of GAINSCO. Finally, the company isn’t a likely contender for cheap car insurance.

In the sections below, we delve into customer reviews and detailed pricing information so you know what to expect when working with GAINSCO.

Is GAINSCO a Good Choice for Auto Insurance?

In the table below, we’ve outlined GAINSCO’s performance across five key metrics, each on a scale of one to five. The company does well with ease of use but earns midrange scores for cost, availability, and industry reputation. It also scores low for customer satisfaction.

Where GAINSCO stands out

GAINSCO is unlikely to turn away people with less-than-perfect driving records or insurance histories. An efficient quote process can quickly give you an idea of your premium costs. The company also provides plenty of independent agents to help you customize your policy.

Where GAINSCO falls short

While you can technically buy a policy online, you can’t customize your coverage options, limits, or deductibles. The company also lacks important information about discounts and coverage options online. You must speak with an agent to get all the necessary information.

GAINSCO Insurance Reviews: What Real Customers Are Saying

GAINSCO is notably absent from many online review sites, including Trustpilot and ConsumerAffairs. But where reviews are present, they’re often negative — 1 out of 5 stars on Yelp and Better Business Bureau (BBB), and 2.5 out of 5 stars on Clearsurance.

GAINSCO negative reviews cover a few themes:

1. Confusing billing practices or sudden changes in prices
2. Canceling policies quickly after a late payment
3. Hard-to-reach insurance agents, customer service representatives, and claims agents

The reviewer below outlines an important functional issue with the company: difficulty processing payments. From trying to set up autopay to reviewing past payments, this customer had an exceedingly difficult time getting the task done.

But positive reviews exist — and they mostly center around the easy buying experience and affordable rates, as shown in the following reviews.

I didn’t find reviews from longtime customers, suggesting people don’t stick around for long.

What You Can Expect to Pay for GAINSCO Car Insurance

Though GAINSCO’s average premium is $189 per month, rates change based on how much coverage you need. Liability-only policies cost less because they only cover injuries or property damage you cause to others. Full coverage costs more and includes liability, collision, and comprehensive coverage.

Here’s GAINSCO’s average monthly cost for liability and full coverage.

GAINSCO’s rates are higher than the national average of $92 for liability and $176 for full coverage. But rates vary from one person to the next depending on several factors.

We’ll dive into the most significant factors later in this article.

GAINSCO vs. the Competition

Knowing how GAINSCO rates compare to similar car insurance companies is also useful. Here’s how the insurer stacks up with four of its closest competitors in terms of performance and price.

GAINSCO’s Compare.com Rating is lower than those of its competitors, and its average rates are also higher. But remember that GAINSCO may still be cheaper for you. And, while the company lags in price, its ease of use score is higher than Dairyland’s. It also has a higher customer satisfaction score than The General and Direct Auto.

Be sure to drill into the details when choosing the best option for you.

Breaking Down GAINSCO’s Average Car Insurance Costs

Average auto insurance rates vary based on a wide variety of factors. Your driving record is the most significant predictor of a future claim and can play a huge role in your insurance costs. But your credit history also influences your rates. Car insurance companies link poor credit with a higher likelihood of car accidents.

This table illustrates how driving and credit histories affect rates with GAINSCO.

Though GAINSCO offers higher-than-average rates for drivers with a variety of driving histories, it follows the trend of offering the lowest rates to drivers with clean records and good credit. Notably, it also offers relatively modest increases to drivers with a speeding ticket or at-fault accident, even if those rates are generally high.

Next, we’ll take a look at how age and location affect rates with GAINSCO.

GAINSCO’s Average Rates by Age

Your age significantly influences your car insurance rates. Teens and young drivers are more likely to be involved in at-fault accidents, according to the AAA Foundation for Traffic Safety. That’s why teens pay higher rates than all other age groups. Conversely, senior drivers are the least likely to cause an accident, resulting in the lowest average rates from insurance companies.

The table below details GAINSCO’s average rates by age group.

GAINSCO’s rates are higher than the industry average for drivers in all age groups. Following general trends, GAINSCO offers the highest rates to teen drivers, at $345 per month, followed by young drivers, who pay $216 on average.

Unlike general trends, drivers in their 50s pay the lowest rates on average with GAINSCO compared to all other age groups.

GAINSCO’s Average Rates by State

Your location also affects your car insurance costs, as state laws, claim rates, crime rates, climate, and other local factors influence the risk of claims. For example, Oregon’s rates tend to be lower than Georgia’s due to its lower population density, lower rate of uninsured drivers, and lower losses due to auto claims.

Let’s take a look at GAINSCO’s average rates for each state it operates in.

GAINSCO Car Insurance Discounts

Auto insurance discounts are one of the easiest ways to save on your car insurance. Unfortunately, GAINSCO doesn’t provide much information about discounts on its website or during the quoting process.

I found the following six discounts:

• Advance shopping: Saves you money for purchasing a policy at least three days in advance.
• Auto pay: Reduces costs for signing up for automatic payments.
• Homeowners: Lowers your rate for owning your own home.
• Pay-in-full: Earn this for paying your entire premium up front.
• Prior coverage: Reduces your rate for continuous car insurance coverage.
• Student discounts: Reduces your premium if you have students who get good grades or a student away at school.

GAINSCO’s website doesn’t explain the value of each discount or where they’re available. And, when getting a quote, you won’t know which discounts the company applied to your quote. The best way to get and understand your discount options is to speak with your GAINSCO agent.

GAINSCO’s Available Auto Insurance Coverages

GAINSCO advertises that it offers coverage that complies with state laws and also covers drivers with suspended licenses, foreign licenses, older vehicles, and SR-22 requirements.

The company offered me the following options during the quoting process:

• Bodily injury liability: Covers injuries you cause to others in accidents.
• Property damage liability: Covers damage you cause to others’ property in accidents.
• Uninsured motorist bodily injury: Covers your injuries if an uninsured driver hits you.
• Uninsured motorist property damage: Covers your property damage if an uninsured driver hits you.
• Comprehensive: Covers non-collision damage to your car.
• Collision: Covers damage to your car from collisions.
• Towing: Covers towing costs if your car breaks down.
• Rental reimbursement: Covers rental car costs while the repair shop fixes your car.

You must work with a GAINSCO insurance agent to change coverage levels or deductibles.

How to Purchase a Car Insurance Policy From GAINSCO

You can buy a GAINSCO policy online, but you can’t customize your coverage options, limits, or deductibles without working with an agent. I started my process by going to the GAINSCO homepage and entering my ZIP code.

Next, I entered my contact information.

I also filled out information about my vehicle, including its financing.

Then, I entered information about my age, gender, relationship status, and driving history.

Next, I provided information about my insurance history and current insurance company.

I answered the final question about my home and homeownership status.

Then, I got my quote — and I noticed the policy was cheaper because it was for liability-only coverage. I have to buy a full-coverage policy since I finance my vehicle. But there weren’t any options for customizing the policy.

When I clicked on the coverage term, a small popup window opened on the upper left of the quote box with a definition of the coverage option. This was helpful but difficult to see (I’ve emphasized the box with red in the image below).

Overall, the process was easy but left much to be desired — especially the ability to customize the policy for my needs. To customize, I could click the “contact me” button to receive a phone call from an agent.

If the policy had been what I wanted, I could click “buy now” and enter my payment information to finish the process online.

What to Expect When Filing a Claim with GAINSCO

You can submit and track your GAINSCO car insurance claim online 24/7 by logging into your account and clicking “submit a claim.” You can also submit your claim over the phone.

Online reviews of the GAINSCO claims process are generally negative, particularly for communication. The customer below allegedly bounced between claims agents and adjusters. After leaving many messages, they were still waiting for a call back when they left this review.

The company replies to many negative reviews but usually without apology.

But I found the below positive review as well. It’s as short and sweet as the claims process it describes.

More About GAINSCO Insurance

GAINSCO Auto Insurance FAQs

Here are answers to some common questions about GAINSCO Insurance, which should give you a clearer idea of what to expect from this auto insurer.

Does GAINSCO have cheap car insurance?

Generally, no. We found that GAINSCO’s average rate — $189 per month — is higher than average for drivers with most profiles.

Is GAINSCO a real insurance company?

Yes, GAINSCO is a real insurance company. Its policies are available in 19 states.

Is GAINSCO owned by State Farm?

Yes, State Farm owns GAINSCO. It purchased the company in 2021.

What states allow GAINSCO?

GAINSCO offers policies in Alabama, Arizona, Arkansas, Georgia, Illinois, Indiana, Maryland, Mississippi, Missouri, New Mexico, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, and Virginia.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Rating Methodology:

Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers.

The score you see referenced in this article is based on several factors, including:

• Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
• Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
• Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
• Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
• Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best financial strength rating, BBB accreditation, and other related factors.

Sources:

1. Yelp, “GAINSCO Auto Insurance,” accessed June 18, 2024.
2. Clearsurance, “GAINSCO Auto Insurance,” accessed June 18, 2024.
3. Statista, “Population density in the U.S. by federal states including the District of Columbia in 2021,” accessed June 18, 2024.
4. Insurance Information Institute, “A Firm Foundation: How Insurance Supports the Economy,” accessed June 18, 2024.
5. Insurance Information Institute, “Facts + Statistics: Uninsured motorists,” accessed June 18, 2024.