Tower Group Insurance Review & Complaints: Auto & Home Insurance (2024)

A brief summary

• Tower Group Insurance was a small-scale insurance company
• The company became insolvent in 2016 and no longer exists
• National General acquired some of Tower Group’s assets after 2014

Tower Group Insurance was a personal insurance company that is no longer in existence following a serious insolvency problem. After a buyout by AmTrust Financial in 2014, the company’s policies were redistributed and no operations continue under the Tower name today.

Our goal in this Tower Group Insurance Review is to see if the company lives up to your expectations. We will look at everything from Tower Group home insurance to the company’s current situation.

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Tower Group Insurance Car Insurance Rates

Tower Group was what can be considered a small-scale insurance company. Smaller companies are less stable than larger ones. Instead, the benefit of smaller companies lies in their specialized nature.

There is some speculation that smaller companies may be more forgiving of poor credit history or history of claims. On the other hand, larger companies are often stricter about assigning policies.

The company’s affiliation with National General insurance is this: National General acquired some of its assets after 2014.

What is Tower Group availability by state?

Tower Group Insurance Company’s headquarters are located in New York City. However, Tower National insurance in Irvine, California exists because CA is CastlePoint National Insurance Company’s state of domicile.

CastlePoint purchased some parts of the Tower Group when it dissolved. CastlePoint acquired Tower National in 2014. Tower previously held a total of eighteen branch locations.

What is Tower Group insurance Massachusetts availability? To put it simply, Tower is no longer available in any state. However, Tower Group International was a Bermuda-based company before its liquidation.

The acquisition by AmTrust resulted in a controversial interruption of claims payments, including some major settlements owed by Tower. If you or the location of your insurance are affected by the liquidation of Tower Group, your claims have been re-allocated.

Read more: AmTrust Financial Insurance Review & Complaints: Business Insurance

Tower Group’s Car Insurance Coverages Offered

Tower group offered a wide variety of options to its clients before its liquidation. These services include many types of car insurance coverage.

Most states require at least minimum liability coverage, but experts agree that full coverage is the best bet for most drivers.

Let’s look at the price difference in low and high coverage to give you a general idea of what you can expect to pay for car insurance.

Average Annual Car Insurance Rates Based on Coverage Type

Companies	Average Annual Rates for Low Coverage	Average Annual Rates for Medium Coverage	Average Annual Rates for High Coverage
	$4,628.03	$4,896.81	$5,139.02
	$3,368.49	$3,544.37	$3,416.40
	$3,922.47	$4,166.22	$4,494.13
	$3,001.91	$3,213.97	$3,429.14
	$5,805.75	$6,058.57	$6,356.04
	$3,394.83	$3,449.80	$3,505.37
	$3,737.13	$4,018.46	$4,350.96
	$3,055.40	$3,269.80	$3,454.80
	$4,223.63	$4,462.02	$4,619.07
	$2,404.11	$2,539.87	$2,667.92

Low coverage will average $312 a month and high coverage will cost you $32 a month more. However, if your car is in a flood, stolen, or totaled in an accident, that $32 a month can save you thousands out of pocket.

What is Tower Group’s bundling options?

Tower National was formerly a small insurance company, offering home, auto, and business insurance. The majority of bundling options you will see nowadays come from larger companies, who are more likely to offer discounts.

Remember, bundling is only worth it if the policies are cheaper paired than they would be individually.

For example, it’s a good idea to check whether the sum of each item in your policy is cheaper than the combined bundling rate.

What are the discounts offered by Tower Group?

Due to the fact that Tower Group was liquidated in 2016, the company has significantly more liabilities than assets.

A 2019 financial report from Tower National’s estate shows the company is at a deficit. What’s more, the company will still have to pay out claims as mandated by the overseeing company post-liquidation.

Because of the liquidation, no policies or discounts are offered.

However, other companies often offer discounts. Popular ones include multi-car, multi-policy, safe driver, and a good student.

This table shows you some discounts commonly available and the amount you can expect off.

Common Auto Insurance Discounts Offered by Company

Discount Name
Adaptive Cruise Control	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Adaptive Headlights	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Anti-lock Brakes	10%	✓	✓	5%	5%	5%	✓	5%
Anti-Theft	10%	✓		23%	20%	25%	✓	15%
Claim Free	35%	✓	✓	26%	✓	10%	✓	15%	23%	12%
Continuous Coverage		✓	✓		✓	✓	✓	✓	15%	✓
Daytime Running Lights	2%		✓	3%	5%	5%	✓	✓
Defensive Driver	10%	10%	✓	✓	10%	5%	10%	5%	10%	3%
Distant Student	35%	✓	✓	✓	✓	10%	✓		7%
Driver's Ed	10%	✓	✓	✓	10%	✓	10%	15%	8%	3%
Driving Device/App	20%	40%	✓	✓	30%	40%	20%	50%	30%	5%
Early Signing	10%	✓	✓	✓	✓	8%	✓	✓	10%	12%
Electronic Stability Control	2%	✓	✓	✓	5%		✓	✓	✓	✓
Emergency Deployment	✓	✓	✓	25%	✓	✓		✓	✓	✓
Engaged Couple	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Family Legacy	✓	✓	✓	✓	✓	✓	✓	✓	✓	10%
Family Plan	✓	✓	✓	✓	✓	25%	✓	✓	✓	✓
Farm Vehicle	10%	✓	✓		✓	✓		✓	✓	✓
Fast 5	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Federal Employee	✓	✓		12%	10%	✓		✓	✓	✓
Forward Collision Warning	✓	✓	✓	✓	5%		✓	✓	✓	✓
Full Payment	10%	✓	✓		$50	✓	✓	✓	8%	✓
Further Education	✓	✓			10%	15%		✓		✓
Garaging/Storing	✓	✓	✓		✓	✓	✓	✓		90%
Good Credit			✓	✓	✓		✓		✓	✓
Good Student	20%	✓		15%	23%	10%	✓	25%	8%	3%
Green Vehicle	10%	✓	5%	✓	10%	✓	✓	✓	10%	✓
Homeowner	✓	✓	✓		✓	5%	✓	3%	5%	✓
Lane Departure Warning	✓	✓	✓	✓		✓	✓	✓	✓	✓
Life Insurance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Low Mileage		✓		✓			✓	30%
Loyalty	✓	✓	✓	✓	✓	5%	✓	✓	✓
Married	✓	✓	✓	✓			✓		✓
Membership/Group	✓	✓	✓		10%	7%		✓		✓
Military		✓	✓	15%	4%	✓			✓
Military Garaging	✓	✓	✓	✓	✓	✓	✓	✓	✓	15%
Multiple Drivers	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Multiple Policies	10%	29%	✓	10%	20%	10%	12%	17%	13%
Multiple Vehicles		✓	✓	25%	10%	20%	10%	20%	8%
New Address	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Customer/New Plan	✓	✓	✓	✓		✓	✓	✓	✓	✓
New Graduate	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Vehicle	30%	✓	✓	15%	✓			40%	10%	12%
Newly Licensed	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Newlyweds	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Non-Smoker/Non-Drinker	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occasional Operator	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occupation		✓			10%	15%	✓	✓		✓
On-Time Payments	5%	✓		✓	✓	✓	✓	✓	15%	✓
Online Shopper	✓	✓	✓	✓	✓	✓	7%	✓	✓	✓
Paperless Documents	10%	✓		✓	✓	5%	$50	✓	✓	✓
Paperless/Auto Billing	5%	✓		✓	✓	$30	✓	$20	3%	3%
Passive Restraint	30%	30%		40%		20%	✓	40%
Recent Retirees	✓	✓	✓	✓	4%	✓	✓	✓	✓	✓
Renter	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Roadside Assistance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Safe Driver	45%	✓		15%	✓	35%	31%	15%	23%	12%
Seat Belt Use	✓	✓	✓	15%	✓	✓		✓	✓	✓
Senior Driver	10%	✓		✓	✓	✓	✓	✓	✓
Stable Residence	✓	✓	✓	✓	✓		✓	✓	✓	✓
Students & Alumni	✓	✓	✓		10%	7%		✓	✓	✓
Switching Provider	✓			✓	10%	✓		✓	✓	✓
Utility Vehicle	15%	✓	✓		✓	✓		✓	✓	✓
Vehicle Recovery	10%	✓	✓	15%	35%	25%	✓	5%
VIN Etching	✓	✓	✓	✓	5%		✓	✓
Volunteer	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Young Driver	✓	✓	✓	✓		✓	✓	✓	✓	$75

Discounts can make a big difference in you car insurance rates, especially if you are allowed to bundle more than one. Be sure to check with an agent to see what discounts are available to you.

What programs are available from Tower National?

Before the company reached insolvency in 2016, Tower Group offered such policies as described below. Customers might have considered buying a policy that protects multiple assets. Tower National’s CustomPac solution covered auto, home insurance, homeowner’s insurance personal property coverage, and home insurance liability protection.

Many insurance carriers offer umbrella plans, but Tower Group’s Personal Umbrella protection provided extra security for claims made against its customers.

These additional claims from outside sources might not be covered under a basic policy. So, purchasing extra personal injury and property damage liability protection will help the policyholder be more protected.

Canceling Your Tower Insurance Policy

While many of us will never have to go through this confusing incident, this section provides some guidelines if and when your insurance company is liquidated.

Is there a cancellation fee?

There will not be a fee for you to cancel if your insurance company has been liquidated. The distribution of assets is overseen by the Insurance Liquidation Company in that state.

Is there a refund?

It’s very likely your unique state’s procedures will ensure that your claims are fulfilled. Insurance guaranty funds, or state guaranty funds, are made up of taxpayer dollars.

How do you cancel?

Money from the public is used to fill the deficit with the insurance company in question. So, if you have a policy with a company that has filed for bankruptcy, your remaining claims may need to be paid out of these funds.

Unfortunately, once the company has been liquidated, private transactions are often no longer available for public consumption.

When can I cancel?

Normally, you can cancel your insurance policy at any time. However, this may differ if your company has recently been liquidated.

How to Make a Tower Insurance Car Insurance Claim

According to the New York Liquidation Bureau, the Tower National Group went under in July 2016. If you are seeking reparations for a claim, the deadline for providing proof of a claim against Tower National Group is December 31st, 2017.

At this point, additional claims can’t be filed.

If your insurance company files for bankruptcy, the liquidation of an insolvent company will result in a delay in the settlement of outstanding claims.

The protocol for affected insureds is the same as filing a regular claim but will take much longer than a few weeks to process. This is because the claim must be investigated and verified.

Next, delays may occur when receiving or reconstructing files. Many settlements require approval by a judge, as reimbursements from an insolvent company go through the New York court system.

Once the settlement is approved, it then is submitted to one of the Security Funds, which releases money to the claimant.

After making sure no one is hurt, the police should be called, since a police report will speed the resolution process.

The more details the claimant can provide to your insurance company, the faster the claims process will go.

Gathering information such as the make, model, and license plate numbers of other involved vehicles, as well as names, addresses, and phone numbers of other drivers and witnesses, will be helpful for the insurance adjuster.

Tower Group Insurance Digital and Technological Features

Mobile App Features and Functionality

Tower Group Insurance offered a mobile app that provided policyholders with convenient access to their insurance accounts. The app featured functionalities such as viewing policy details, making payments, and even filing claims on-the-go. It was designed to streamline the insurance experience for customers who preferred mobile solutions.

Online Account Management Capabilities

Managing your insurance policies and accounts online was made easy with Tower Group Insurance. The company’s online account management platform allowed policyholders to access their policy information, make changes, and monitor their coverage seamlessly. It provided a user-friendly interface for a hassle-free experience.

Digital Tools and Resources

In addition to its mobile app and online account management, Tower Group Insurance offered a range of digital tools and resources to help policyholders make informed decisions. These resources included educational content, coverage calculators, and insurance guides, empowering customers to understand their policies better and choose the right coverage for their needs.

Tower National: Car Insurance Ratings

The ability or inability to pay out claims indicates a company’s financial health. When a company has been liquidated, its claims are absorbed by active companies that are better equipped to handle them.

AM Best Ratings: According to AM Best, CastlePoint is currently not rated. The financial strength rating and long-term issuer credit rating, are not available at this time.

If a company has a strong ability to meet ongoing financial commitments, such as paying claims, then AM Best will give the company a good rating.

While the highest possible score is A++, a lack of customer support or failure to pay out claims could significantly lessen the score.

The Bottom Line

Although the company is now insolvent, there are ways to get coverage with other companies. If you have a policy with Tower Group, you can use our rate calculator to find a new home or auto insurance policy.