Car insurance rates have steadily been on the climb for the past half decade, and yet customer satisfaction levels with insurance companies are at an all-time high.
This is according to the J.D. Power 2014 U.S. Auto Insurance Study, which polled 44,661 insurance customers on five aspects of their experiences: billing and payment, interaction, price, policy offerings and claims. On a 1,000-point scale, customers overall satisfaction levels climbed by 16 points to land at 810, the highest score since the study began in 2000.
A few different factors contributed to this increase, the first of which is smaller premium hikes. In 2013, the average customer received a $153 increase, while this year, most customers have only seen an $86 increase.
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“A premium increase often triggers shopping behavior, but we’re seeing fewer people shopping,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power. “This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they’re necessary, and demonstrating the value of their coverage.”
This point is proven by the ‘interaction’ category of the poll, which increased by 13 points this year. Insurance companies are also notifying customers more through their preferred channel of communication according to the study.