Customer Satisfaction With Insurance Companies Drop: J.D. Power
The J.D. Power 2016 U.S. Auto Insurance Study has been released and overall customer satisfaction has declined.
The study measures customer satisfaction on a 1,000-point scale in five factors (in order of importance): Interaction, Policy Offerings, Price, Billing Process and Policy Information. Overall customer satisfaction declined this year, following an improvement in each of the past two years. The study also found that the perception of price increases is the main reason for the decline in customer satisfaction.
Last year, overall customer satisfaction came in at 818, but this year it dropped seven points to 811. Primary drivers of the decline are the 17 largest insurers, whose satisfaction levels also dropped by 7 points. This year’s study also marks the first time that smaller insurers had a higher satisfaction score than large insurers – 815 vs. 814, respectively. Overall satisfaction among small insurers increased by one point from 2015.
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The level of satisfaction with call center representatives and local agents also dropped, six and seven points, respectively. Satisfaction with policy offerings is down 8 points to 809.
Not surprisingly, customers satisfied with their insurer are more likely to renew their policies, the study found. When overall satisfaction scored 900 and above, 75 percent said they “definitely will” renew their policy, compared to 12 percent of displeased customers, with overall scores of 549 and lower.
The J.D. Power 2016 U.S. Auto Insurance Study is based on responses from 44,681 auto insurance customers. The survey data was collected from January 29, 2016 to March 25, 2016.
“Price perception among customers of smaller insurers is likely influenced by the fact that they frequently select their insurer with the help of an independent agent,” said Greg Hoeg, vice president of the U.S. insurance operations at J.D. Power. “Smaller insurers benefit from the personal interactions provided by their agency force, including their ability to educate customers about the value their policy provides.”
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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It seems insurance companies are nothing but a scam and extortion racket. In 30+ years of driving, with the only claims were when deer struck my car and motorcycle, I was run into by a crazy bitch, who then caused a second wreck by speeding off. My carrier, totally lacking in common sense, said I was at fault for the initial accident. Total cost of all repairs: about $2,500. Chump change when you think about it. The effect on my premium? Went from just under $500 for two vehicles to over $740! My policy said I had some claim coverage or forgiveness or the like, but discovered that was only for claims "under $500" (and that fact isn't listed anywhere). I vowed not to renew with them and started looking elsewhere. Got several quotes that, while not as low as what I was paying, but definitely lower than Company "P". Went online to finalize the purchase, and then two days later, the rates almost doubled! Their excuse? "They didn't have all of the information"! WTF?!?! I spent time getting everything on my record (just the one claim, mind you), when filling the application, so what the fuck is this shit? Promptly cancelled and got a refund, then went to the next second-lowest priced insurer, and after a few minutes, they told me the same crap! In the end, since I needed coverage, I had to swallow my bile and resign with the original company. What crap.