A new study by J.D. Power and Associates shows that customer satisfaction with auto insurance providers is up significantly this year, driven primarily by lower premiums that were designed to help ease the sting of a struggling economy. On the surface, lower premiums would seem like great news for consumers, but take note: Historical data from J.D. Power and Associates indicates that approximately 12 months after the start of the 2001 to 2002 recessionary period in the U.S., overall customer satisfaction with auto insurance companies declined considerably as insurance companies raised rates. As signs of market hardening and rising rates are already beginning to show in the 2009 recessionary period, a similar decline in customer satisfaction could ensue in 2010 and 2011.
The 2009 National Auto Insurance Study measures customer satisfaction with auto insurance companies across five factors. In order of importance, they are:- interaction
- policy offerings
- billing and payment
- price
- claims
According to the study, overall customer satisfaction with auto insurance companies has reached a five-year high in 2009, averaging 801 on a 1,000-point scale—up by 14 points from 2008. More than one-half of the 32 companies ranked in 2009 have improved significantly year over year. While satisfaction has increased for the four most important factors contributing to overall satisfaction, the most notable increase has occurred in the area of price, which is up by 32 points from 2008.
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