Customer Satisfaction With Auto Insurance At All-Time High: J.D. Power

June 29, 2012
The words “customer satisfaction” and “auto insurance” don’t necessarily seem to go together, but a new study from J.D. Power and Associates shows that, in fact, they do.

The 2012 U.S. Auto Insurance Study found that customer satisfaction improved largely because customers were satisfied with policy offerings and billing and payment. In the latest study, customer satisfaction reached the highest levels since the first such study was conducted in 2000.

The study looked at five factors to gauge current customer satisfaction with auto insurance: interaction, price, policy offerings, billing and payment, and claims.

Other study findings

J.D. Power 2012 U.S. Auto Insurance Study - California Region

J.D. Power 2012 U.S. Auto Insurance Study - California Region

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Although customer satisfaction with price was relatively steady overall, the satisfaction of those who saw an insurer-initiated price increase in 2011 showed there is a tipping point. Some 20 percent of respondents said they experienced a price increase and, of those whose price increased by $50 or more, satisfaction is about 8 percent lower than customers whose increase was less than $50.

Price increases might be mitigated if insurers “proactively communicate the rate change prior to the renewal notice, and engage in discussions with customers regarding their options,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.

Insurance companies ranked highest in each of the seven regions of the study include:

  • Wawanesa – California Region
  • State Farm – West Region
  • Texas Farm Bureau – Central Region
  • Farm Bureau Insurance Tennessee – Southeast Region
  • Auto-Owners Insurance, State Farm (tie) – North Central Region
  • Amica Mutual – Northeast Region
  • Erie Insurance – Mid-Atlantic Region

View the full report here (PDF).

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