Despite Premium Increases, Auto Insurance Satisfaction Rises
June 23, 2014—Auto owners’ satisfaction with their auto insurance carriers has reached record-high levels, according to a study released by J.D. Power & Associates.
Despite premium prices increasing over the past five years, the J.D. Power 2014 U.S. Auto Insurance StudySM found that consumers’ overall satisfaction with their insurance companies increased by 16 points, bringing satisfaction scores to 810 points on a 1,000-point scale. The satisfaction increase is the largest since the study first started in 2000.
“A premium increase often triggers shopping behavior, but we’re seeing fewer people shopping,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power. “This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they’re necessary, and demonstrating the value of their coverage.”
The study used responses from more than 44,600 auto insurance customers, which were collected in March and April. The study measured satisfaction in interaction, price, policy offerings, billing and payment and claims.
Key study findings include:
- 51 percent of customers say they “definitely will” renew their auto insurance policy with their current provider
- 49 percent of customers say they “definitely will” recommend their insurer to family and friends in 2014
- Having an engaged relationship with a carrier decreases the likelihood of switching insurance companies.
- Over 60 percent of customers who prefer to interact with technology, have interacted with their insurer in the past 12 months.
- 40 percent of customers who prefer to interact with technology have communicated exclusively via digital in the past 12 months.
- Most of the improvement this year at the insurer level comes from the smaller insurers in the industry.
- The 20 largest insurers, based on the amount of written premiums, improved by 10 points from last year
- Small insurers improved by 41 points
For more information about the study, or a graphs of key findings, visit J.D. Power online.