Driver Satisfaction With Auto Insurer on the Rise

By Mark E. Ruquet

I was cleaning my desk recently and came across this press release I thought would be of interest to many auto owners. It is a J.D. Power survey of customer’s satisfaction with their auto insurer from mid-June.

Are you happy with your carrier? J.D. Power’s annual Auto Insurance Study for 2014 says that despite continuing increases in rates policyholder’s overall satisfaction with their carrier is at its highest level in the survey’s 14-year history.

The consumer research firm said overall satisfaction increased by “a significant 16 points to 810” on a 1,000-point scale. The increase comes despite average increases of $86 in 2014, down from last year’s rise in premium of $153. The number of consumers experiencing an increase remained almost unchanged at 19 percent compared to 20 percent in 2013.

“A premium increase often triggers shopping behavior, but we’re seeing fewer people shopping,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power, in a statement. “This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they’re necessary, and demonstrating the value of their coverage.”

The report underscores the importance of having an agent in the insurance company relationship, finding that overall satisfaction is highest with consumers that have an agent scoring 867. These customers, the report said, are the least likely to shop and switch carriers because of their strong relationship with their agent. 

Those consumers with little relationship with an insurer scored the lowest at 742.

Smaller companies also appear to be doing a better job. J.D. Power said satisfaction with small carriers—those outside of the top 30 companies, improved by 41 points, while the top carriers saw only a 10-point improvement.

So what carriers in the New York region got the highest satisfaction rating? GEICO and State Farm were the highest with an overall score of 822. Of the 11 carriers ranked, Progressive was last with a score of 773.

However, the highest satisfaction score goes to USAA with a score of 901 — which held true on a national level and other regions of the country. J.D. Power does not include the company in its rankings because the company is only open to U.S. military personnel and their families. Three insurers New Yorkers may be familiar with, Amica Mutual, Erie Insurance and Kemper did not make the survey because of small sample size, the research firm said.