Auto Insurers — Customer Satisfaction Dropping like a Stone

We all don’t purchase homeowners insurance because a lot of us don’t own homes. At the same time, a huge percentage don’t need insurance for our businesses. But a high percentage of people over 18 in the U.S. needs auto insurance.

And auto insurers have also done a lot of heavy advertising to get people to switch where they are and get insurance from them. So it’s a very out front industry, and as such is a huge target for criticism.

Some companies really struggle to keep a positive image and customers.

According to J.D. Power’s annual auto insurer survey, that image has never been less positive. The annual survey talked to 41,437 people who have auto insurance.

Popularity on a 1,000 point scale — on average — dropped 12 points from a year ago. It is the biggest drop in over 20 years. The company says sky high rates that are rising faster by the day are the main reason. Close to a third of respondents — 31% — said they saw a price hike in the last year. Those raises averaged 15.5%.

Mark Garrett is the director of insurance intelligence at J.D. Power. He said that 15.5% is three-times higher than other categories the Consumer Price Index follows. “Overall customer satisfaction with auto insurers has plummeted this year, as insurers and drivers come face to face with the realities of the economy,” Garrett said.

So no wonder the line of insurance is suffering from positive feelings by the U.S. public.

The bottom-line is that insurance customer satisfaction dropped from 834 a year ago to 822. The people most dissatisfied are those who don’t — or who are unable to — bundle their auto and homeowners or renters insurance.

“While insurers are caught between a rock and a hard place when it comes to balancing profitability with customer experience, there are several ways they can blunt the negative effects of rising costs, such as proactively offering customers UBI alternatives, clearly signaling and explaining necessary rate increases and consistently delivering on brand promises to instill trust,” Garrett said.

Here are the rankings from 11 geographical regions. The list includes the best performing insurer in those areas. We start with the regions of the PIA Western Alliance.

  • California — Wawanesa: 843 points
  • Northwest — The Hartford: 836 points
  • Southwest — State Farm: 835 points

Other areas:

  • Central — Shelter: 851 points
  • Florida — State Farm: 833 points
  • Mid-Atlantic — Erie Insurance: 863 points
  • New England — GEICO: 836 points
  • New York — New York Central Mutual: 842 points
  • North Central — Erie Insurance: 844 points
  • Southeast — Farm Bureau Insurance, Tennessee: 866 points
  • Texas — Auto Club of Southern California (AAA): 839 points

Source link: Insurance Business America —

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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