Consumer Satisfaction with Auto Insurance Drops, according to recent survey


101051093A recent survey found that consumers are less happy and less satisfied with the services offered by auto insurance companies due to the latter’s rising premiums in auto coverage.

The latest survey of the J.D. Power & Associates research firm  shows that the satisfaction of auto coverage consumers with the policy offerings, interactions and many other factors with their auto insurance providers have dropped by an overall ten (10) points since last year. And, according to the 2010 U.S. National Auto Insurance Study, those figures went down to 777 on a point scale of 1, 000.

The reason behind this growing dissatisfaction with auto insurance services is the higher rates of auto coverage lately, and that consumers have become more conscious and more sensitive about the costs of having financial protection for their cars. Most especially if these consumers are handling their finances as the recession is almost ending. Additionally, during that time between this year and last, consumer satisfaction went down by 30% in terms of auto coverage prices.

The survey also shows that over 22% of the 25, 000 policyholders interviewed earlier this year had noticed that their premiums have become more expensive round this year, and that about 60% of them say that they have not been properly notified or warned by their auto insurers.

Senior director J.D. Power & Associate’s insurance practice, Jeremy Bowler, said in a statement that consumers have started to shop for other new auto insurance companies because they have become less satisfied with their issuers and the rates that the latter have charged for their services. Bowler also added that this level of consumer activity of finding new auto coverage providers have not been seen since before the recession.

Survey findings also show that a better and more targeted approach in communication would help boost customer satisfaction. For example, in terms of which generation consumers come from there are the Y-Generation consumers who prefer fast and easily accessible services while consumers from the Boomer Era prefer more service in customer service kits, magazines, and insurer newsletters. 

The top insurers in the survey included, in order according to insurer points in a scale of 1000:

  1. Amica Mutual: 849 points
  2. Erie Insurance: 815 points
  3. Auto-Owners Insurance: 813 points
  4. Shelter: 807 points
  5. State Farm: 795 points
  6. Geico: 793 points
  7. Liberty Mutual: 785 points
  8. American Family: 784 points
  9. Country Financial: 782 points
  10. Alfa Insurance: 781 points