Auto Insurance Satisfaction Down from Last Year's High: J.D. Power

Auto Insurance Satisfaction Down from Last Year's High: J.D. PowerIssues with pricing and policies are driving down overall customer satisfaction with auto insurance companies in 2013, compared to last year, according to according to a new report, the J.D. Power 2013 U.S. Auto Insurance Study
Overall satisfaction with auto insurance companies is 794 (on a 1,000-point scale), down 10 points from 2012.
However, last year’s mark was at an all-time high. Despite this drop, satisfaction in 2013 is the second-highest level since the study launched in 2000.
The study measures customer satisfaction in five areas: interaction, price, policy offerings, billing and payment and claims.
Scores across all five factors have decreased from last year, with price and policy offerings both declining by 13 points. These two factors are the primary forces contributing to lower overall satisfaction.
“In 2013, there is a sharp rise in the number of customers who have experienced premium increases,” said Jeremy Bowler, senior director of the global insurance practice at J.D. Power. “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.”
There is a direct relationship between the size of the premium increase and the proportion of affected customers who switch insurers.
Only 9 percent of customers who saw an annual rate increase of $50 or less switched insurers.
However, the switching rate nearly doubles to 18 percent when the increase is between $51 and $100, and to 32 percent when the increase is more than $200.

Regional Overview
The study has expanded its regional methodology in 2013 to include 11 regions, including four state-specific regions. Similar to the overall industry, satisfaction has declined in each of the regions, compared with 2012, although the magnitude of the change varies by region.
California: Wawanesa (820) ranks highest among award-eligible insurers in the California region, followed by State Farm (812) and The Hartford (811).
Central: State Farm (833) ranks highest among award-eligible insurers in the Central region, followed by Auto-Owners Insurance (821) and Shelter (817).
Florida: MetLife (808) ranks highest among award-eligible insurers in the Florida region, followed by The Hartford (802) and State Farm (800).
Mid-Atlantic: State Farm (836) ranks highest among award-eligible insurers in the Mid-Atlantic region, followed by Erie Insurance (826) and GEICO and The Hartford in a tie (811 each).
New England: Amica Mutual (850) ranks highest among award-eligible insurers in the New England region, followed by GEICO and State Farm in a tie (794 each) and The Hartford (793).
New York: New York Central Mutual (814) ranks highest among award-eligible insurers in the New York region, followed by State Farm (807) and Travelers (783).
North Central: Auto-Owners Insurance (833) ranks highest among award-eligible insurers in the North Central region, followed by State Farm (824) and Erie Insurance (823).
Northwest: PEMCO Insurance (834) ranks highest among award-eligible insurers in the Northwest region, followed by The Hartford (820) and Mutual of Enumclaw (813).
Southeast: Tennessee Farm Bureau (850) ranks highest among award-eligible insurers in the Southeast region, followed by State Farm (822) and North Carolina Farm Bureau (821).
Southwest: State Farm (824) ranks highest among award-eligible insurers in the Southwest region, followed by The Hartford (821) and GEICO (809).
Texas: Texas Farm Bureau (862) ranks highest among award-eligible insurers in the Texas region, followed by GEICO (815) and State Farm (810).

See the report.

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