Economic hardship for car insurance fades according to customer response


Car insurance is a necessity and is required by law. With the current economic hardship, it is difficult to manage additional expenses like these into the family budget. But, a study was conducted by a consultation group named Market Force Information that shows that car owners are able to cope with the expenses of having car insurance. They surveyed 2,800 people to get their responses about how well they are satisfied with their car insurance companies and how well they are able to keep up with their responsibilities as policyholders.

16From the 2,800 auto insurance policyholders, 59 percent of them said that when choosing an auto insurance company, they make sure that the price is right. They said that they want an auto insurance policy that they can easily manage in terms of cost for premiums. If they are not satisfied with the pricing, they change auto insurance companies as what ten percent of the participants did. According to Market Force Information, they were not satisfied because the price was high for what it only covered, their customer service was bad, and they did not agree with new rules and additional charges that were given. From this ten percent that had to change auto insurance companies, seventy-four percent of them were able to easily get new auto insurance companies that gave them better customer service and a better price.

There were additional factors that made the respondents rank auto insurance companies high in terms of performance. One of the factors that made them rank their auto insurance companies high is the way their claims were processed. A total of 18% of the respondents said that they have filed claims with their auto insurance companies and 85% percent of them said that they were happy on how fast their claims were processed. Another fact that was derived from the study is that policyholders also give high importance to financially stable auto insurance companies to make sure that there will be no money problems when they file a claim. This data is an indication that auto insurance companies are not having economic hardship because they were able to attend to their customers’ needs as soon as possible.

Market Force Information showed that although there were some non-money related factors that contributed to the choosing of auto insurance companies like recommendation from family and friends, consideration of what the policy covers and other services, the information showed that policyholders are still able to put up with the responsibilities of a auto insurance policyholder and they are not having difficulty with the price.