Auto Insurance Rates for Customer Satisfaction at a Five-Year High
Auto insurance customers are the happiest theyve been in 5 years, a recent study reports. The study, conducted by J.D. Power and Associates, measures the rate of auto insurance customers satisfaction with their providers based on five factors: policy offerings, billing, price, claims and interaction.
The study, which is based on the responses of 22,930 auto insurance policy holders, also states that overall customer satisfaction is 801 (out of a 1000 point scoring system), up 14% from 660 in 2008. While all areas have collectively improved over the course of one year, one factor has stood out: cheap auto insurance. Since 2008, the customer satisfaction rates concerning price have improved by 32 points. A factor contributing to this is the statistic stating that 42% of customers have reported a decrease in auto insurance rates in 2009.
The most shocking result of the study reveals that the recession seems to have been a determining factor in auto insurance companies decision to improve customer service. Historical data from J.D. Power and Associates reveals that a similar pattern emerged in 2002, when customer satisfaction rates greatly declined with the end of the recessionary period. Now, signs of market stability suggest a similar decline in customer satisfaction may be on the way in 2010 or 2011.
J.D. Power and Associates director of insurance practice, Jeremy Bowler also notes that this may have negative effects on auto insurance customer satisfaction rates in the future. He states: If history repeats itself, one could anticipate a notable decline in overall customer satisfactionâ€.
