Auto insurance companies aren’t keeping customers happy

auto insurance rates companies customer satisfaction
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A new J.D. Power survey revealed a drop in overall customer satisfaction within this market.

J.D. Power has now released its report on customer satisfaction through auto insurance companies. What the J.D. Power 2016 U.S. Auto Insurance Study revealed was that customers aren’t as happy with insurers. The overall satisfaction customers feel is on the decline.

This study measures customer satisfaction through the use of a 1,000 point scale broken down into 5 factors.

These five factors – in order of importance – are: Interaction, Policy Offerings, Price, and Billing Process and Policy Information. Auto insurance companies were unable to maintain the same customer satisfaction level achieved over the last two years. The industry had improved for two consecutive years. Now, it has experienced a measurable overall decline.

The J.D. Power study also pointed out the largest reason for the decline. Customers are not happy with the price increases they face. The price increases caused the largest decline in customer satisfaction in this study.

Customer satisfaction with auto insurance companies scored 818 points in the 2015 study.

auto insurance companies customer satisfactionOn the other hand, consumers did not feel the same way in 2016. Their satisfaction level fell by 7 points to reach 811. The decline was primarily driven by the 17 largest insurance companies in the United States. The satisfaction rating for those insurers also fell by 7 points.

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Smaller insurance companies achieved a higher score than larger ones, this year. This is the first time smaller insurers have scored better than their larger counterparts. Small insurance companies scored an average of 815 while large insurers scored an average of 814. Moreover, small providers saw a one point increase over last year. This certainly contrasts the 7 point drop among larger insurers.

Customer satisfaction with local agents and call center representatives also stumbled. Local agents scored 7 points lower while call center reps scored 6 points lower than 2015. Policy offerings also failed to impress, having dropped by 8 points to a score of 809.

Auto insurance companies value customer satisfaction, as happy policyholders are more likely to renew. Among customers whose satisfaction level scored 900 or higher, 75 percent said they “definitely will” renew. Among those with a score of 549 or lower, only 12 percent said the same thing.

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