Few major insurance companies are on the list
of ConsumerAffairs
Its no secret that auto insurance rates have surged since the pandemic and are up more than 11% in just the last 12 months.
But in its 2024 U.S. Auto Insurance Study, J.D. Power said it found that, in many cases, higher rates havent damped customer satisfaction with the industry as a whole. When customers have a high level of trust in their insurer, J.D. Power found that customer satisfaction and brand advocacy increase considerably, even in the face of rate increases.
However, slightly more than half 51% of customers say they have little trust in their auto insurer.
Auto insurers are in a tough position right now, said Breanne Armstrong, director of global insurance intelligence at J.D. Power. With repair costs still risingand with more than 20% of vehicles involved in collisions now considered total write-offsinsurers are still losing money, despite passing along huge price increases to their customers.
Key findings
Here are the key findings of the study:
- Trust has a huge influence on customer satisfaction and brand loyalty
- Most insurers miss the mark on trust
- Trust varies by region; Florida scores lowest
The study measured customer satisfaction with auto insurance in 11 geographic regions and most major insurance companies didnt make the cut. The highest-ranking auto insurers and scores on a 1,000-point scale by region are as follows:
- California: Auto Club of Southern CA (AAA) (684)
- Central: Shelter (677) (for a fourth consecutive year)
- Florida: Auto-Owners Insurance (654)
- Mid-Atlantic: Erie Insurance (713) (for a third consecutive year)
- New England: Amica (709)
- New York: Travelers (667)
- North Central: Erie Insurance (710) (for a fourth consecutive year)
- Northwest: PEMCO Insurance (666)
- Southeast: Alfa Insurance (693)
- Southwest: CSAA Insurance Group (AAA) (683)
- Texas: Texas Farm Bureau (686)
- Usage-Based Insurance (UBI): Nationwide (842)
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-06-17 10:58:19
