Consumer Satisfaction with Auto Insurance at Record Levels

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  • Over the past several years, many auto insurance companies have turned an eye toward getting their customer satisfaction numbers up more aggressively, and it seems as though all that hard work is finally paying off. However, now is hardly the time for any insurance agents to rest on their laurels, because while they play an integral part in keeping clients happy with their coverage, there’s always more that can be done to increase loyalty and make sure people don’t shop around.

    Today, 55 percent of auto insurance customers say that their premiums haven’t increased in the last year, and those who did see upticks saw ones that were far smaller than they had been used to in the past, according to the latest data from J.D. Power’s annual U.S. Auto Insurance Study. In 2013, the average increase came to $153, but this year that number was just $86. Consequently, the number of people who say they’re satisfied with their coverage overall is at the highest level seen in the history of the survey.

    “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. “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.”

    Looking at the data
    The number of people who say that they’ll renew their current policies when it comes time to do so is on the rise, as is the number of people who say they would recommend their current policy providers to friends or family, the report said. In addition, that also means that fewer people believe they will have to start shopping around for plans from other companies. However, at the same time, those who have the fewest dealings with their insurance agents are also the ones most likely to start looking for new options in the market. Interestingly, the survey found that consumers with plans from smaller insurers were also generally happier with the results.

    Therefore, it might be wise for insurance agents – no matter what size their companies are – to make sure they’re doing as much as possible to check in with clients regularly. Clearly, doing so can engender the kind of improved relationships that leads to increased satisfaction overall.