J.D. Power — Rising Auto Rates a Serious Home/Auto Bundle Problem


Insurers have used bundling home and auto policies to get more income from consumers. In turn, consumers have benefitted from the discount given for bundled policies.

J.D. Power’s 2022 U.S. Home Insurance Study found rising auto rates are causing consumers concern. Spokesman Robert Lajdziak said many consumers are shopping for insurance and splitting their policies between two different companies.

Sky-high auto loss costs and resultant auto premium increases are creating ripple effects throughout the insurance industry and, as a result, one area that is being severely disrupted is the home and auto insurance bundle,” Lajdziak said. Homeowners, and particularly bundlers, have traditionally been less price-motivated than the typical monoline auto customer, but we are beginning to see cracks in that foundation. That puts the focus for insurers squarely on the overall brand experience their customers are receiving—across all lines—and on understanding how changes in one area, such as telematics adoption in an auto policy, can affect the entire customer journey.”

The result has been a big drop in homeowner satisfaction. On the 1,000 point scale, it dropped 6 points this year. Renter satisfaction dipped another point and is down 7 from a year ago.

Here are the homeowner satisfaction scores based on 1,000 points:

Amecia Mutual — 849

American Family — 842

The Hartford — 839

Automobile Club of Souther California — 838


State Farm — 829

Erie Insurance — 827

Auto-Owners Insurance — 825

Segment average — 819

Automobile Club Group — 817

Nationwide — 816

Allstate — 815

Chubb — 809

Safeco — 809

Liberty Mutual — 805

ASI Progressive — 801

CSAA Insurance Group — 794

Travelers — 794

Farmers — 792

Homesite — 753

USAA — 884

Source link: Insurance Journal — https://bit.ly/3SHNHr3

Source link: PropertyCasualty360.com — https://bit.ly/3fmwoxa

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