Overall customer satisfaction with auto insurance companies dipped in 2013 from an all-time high in 2012, but remains comparatively high relative to the previous decade, according to the J.D. Power 2013 U.S. Auto Insurance Study.
The study, which was launched in 2000, measures customer satisfaction across five factors: interaction, price, policy offerings, billing and payment and claims.
J.D. Power reports that overall satisfaction with auto insurance companies is 794 (on a 1,000-point scale), down 10 points from 2012. Despite this decline, satisfaction in 2013 is the second-highest level since the study launched in 2000.
Price and policy offerings were key factors contributing to lower overall satisfaction.
In a press release, Jeremy Bowler, senior director of the global insurance practice at J.D. Power says:
In 2013, there is a sharp rise in the number of customers who have experienced premium increases. The dollar amount of those increases is also larger, averaging $153 in 2013, compared with an average rate increase of $113 reported in the 2012 study.Ã¢â‚¬
J.D. Power reports there is a direct relationship between the size of premium increase and the percentage of affected customers who switch insurers. Only 9 percent of customers who experienced an annual rate increase of $50 or less switched insurers, whereas 18 percent of customers switched when the increase was between $51 and $100, and 32 percent when the increase is more than $200.
The surveyÃ‚ alsoÃ‚ notesÃ‚ that insurers achieve higher satisfaction scores when they discuss rate increases with customers prior to sending a renewal letter.
Satisfaction averages 698 among customers who are notified before renewal and discuss their options. This is 67 points higher than among customers who did not get to discuss a rate increase prior to renewal.
The study finds that only 16 percent of customers with a rate increase indicate that they had a discussion with their insurer regarding potentially changing their coverage.
Check out I.I.I. facts and stats on auto insurance.