Insurance Rates Up, Customer Satisfaction Down: Study

Insurance Rates Up, Customer Satisfaction Down: Study

Overall customer satisfaction with auto insurance companies are on the decline in 2013 from an all-time high in 2012.

Despite the drop this year, customer satisfaction remains comparatively high relative to the previous decade according to a recent study by J.D. Power and Associates. By measuring customer satisfaction across five factors, J.D. Power assigns an overall satisfaction score with auto insurance companies based on a 1,000-point scale. Those five factors are: interaction, price, policy offerings, billing and payment, and claims. Overall satisfaction is at 794, down 10 points from 2012. However, 794 is the second-highest level since the study launched in 2000.

The two primary factors attributed to the overall decline are price and policy offerings – both of which declined by 13 points. The study concludes that there is a direct relationship between the amount of a premium increase and the proportion of affected customers who switch insurance companies as a result. It also found that only 16 percent of customers had a discussion with their insurer before a rate increase was put into place.

Of the five factors, price satisfaction was the lowest scored at 716, more than 100 points lower than the average scores for interaction and claims.


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