Body shops that strive to clearly communicate with their customers are perceived as providing better service than those that don't, according to the recently released J.D. Power and Associates 2006 Collision Repair Satisfaction Study. The analysis also reports that nearly one out of every five policyholders considers switching insurance companies after experiencing the collision claim process.
The study is based on responses from 5,752 customers who have had collision damage repaired on their vehicles or have had a total loss within the past 12 months. The study examines the top three performance factors that drive customer satisfaction with the repair experience: claims/estimation (62 percent), body shop (36 percent) and rental car (2 percent).
"If a customer has an opportunity to discuss what the estimation, repair and painting processes involve, they tend to be much more satisfied with the quality of work performed, the parts used in the repair as well as the cycle time," says Jeremy Bowler, J.D. Power's senior director of the insurance practice.
In contrast, if a customer feels uninformed on any of these points, they are much more likely to assume the shop is attending to other customers' vehicles while theirs sits out in the yard waiting for an open bay, he says.
The study finds that 7 percent of customers chose not to file a claim with their insurer after their most recent collision. Common reasons include the insurance deductible was more than the cost of the repairs; concern that the carrier would increase the premium after the claim; or at the advice of their insurance agent.
This aspect conveys a very powerful message, according to Bowler.
"Customers who have a shop in mind before they call their insurer — and come to learn that the same shop is one the insurer works with regularly — tend to be more satisfied with the repair experience overall than those who have no shop in mind," he says.
Additionally, while more than 30 percent of auto insurance customers who chose not to file a claim after a collision feared their premium would increase, 62 percent of respondents who did file a claim more than six months prior to being surveyed indicate their premium has not been re-adjusted by their insurers.
The J.D. Power study further finds that claimants whose vehicles are totaled rather than repaired are significantly more satisfied if their insurer gives them a clear explanation of why the vehicle is totaled and how they calculated the settlement amount. Nearly 85 percent of total loss claimants receive an explanation of why their vehicle is being totaled and how their actual cash value settlement is derived.
"The difference in satisfaction is primarily driven by how well the insurer manages the claims process, which is significantly longer for claimants experiencing a total loss," says Bowler.
"However, when the damage exceeds $5,000, total loss claimants tend to be significantly more satisfied with their collision experience, perhaps due to concerns surrounding repair quality and diminished value of the vehicle."
