Satisfaction With Auto Insurance Companies Declines Considerably From 2009

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After peaking in 2009, overall customer satisfaction with insurance companies has declined significantly in 2010, according to the J.D. Power and Associates 2010 U.S. National Auto Insurance Study recently released. Overall customer satisfaction averages 777 on a 1,000-point scale, decreasing by 10 points from 2009.

The study measures customer satisfaction with auto insurance companies across five factors: interaction; policy offerings; billing and payment; price; and claims. The decline in overall customer satisfaction in 2010 is largely attributable to declining satisfaction with price, which has decreased by more than 30 index points compared with 2009. At the same time, price has also gained in relative importance as a driver of overall satisfaction.

The study finds the proportion of customers who report experiencing an increase in premiums has increased significantly to 22 percent in 2010, compared with 17 percent in 2009. In addition, six in ten policyholders who have experienced a premium increase indicate they received no advance notice of the change from their insurers.

Amica Mutual ranks highest in customer satisfaction with auto insurance companies for an 11th consecutive year with a score of 849. Erie Insurance (815) and Auto-Owners Insurance (813) follow in the rankings. New Jersey Manufacturers Insurance Company (NJM) and USAA also achieve high levels of customer satisfaction, although they are not included in the rankings due to the closed natures of their respective memberships. 

The study also finds the following key trends among Generation Y (Gen Y) auto insurance customers (those born between 1977 and 1994):

• Gen Y customers tend to be more critical of their insurance providers
• Baby Boomers (those born between 1946 and 1964) tend to place a great deal of importance on traditional communications from their insurer
• While website usage among Baby Boomers is increasing, 40 percent of Baby Boomers report using their insurer’s website to review or make changes to their policies

The 2010 U.S. National Auto Insurance Study is based on more than 25,000 responses from auto insurance policyholders. The study was fielded in February and March 2010.