Overall, drivers are more satisfied with their insurance companies this year than last, according to J. D. Power’s 2012 U.S. Auto Insurance Study.
“Although satisfaction with price remains consistent from 2011, auto insurance companies have made great strides in all other areas,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “Specifically in the area of policy offerings, a number of insurance companies place an emphasis on product differentiation in their advertising and packaging of discounts and offerings.”
The firm gauges customer satisfaction based on five factors: interaction, billing and payment, price, policy offerings and claims. This year’s study shows, as you would expect, that customers who are more pleased with their insurer will also happily tolerate rate hikes within certain limits.
“Among customers whose insurers meet or exceed all their service expectations, modest rate increases appear to be well tolerated, provided the rate adjustment amounts to less than $50. However, larger rate adjustments may trigger customers to consider shopping for a new insurer, especially those customers who are less engaged with their insurance company,” Bowler said.