Car Insurance Customers Are Less Satisfied…Should Auto Insurers Care?

Posted & filed under Car Insurance News.

In its seasonal Auto Claims Satisfaction Study, the product ratings organization J.D. Power and Associates reported that drivers are less satisfied with their insurance. The 2012 study revealed that consumer satisfaction declined by a large margin during the first quarter in several categories, including customer service, repairs, and claims appraisal.

As more drivers opt for cheaper car insurance, insurers must compete aggressively for business. 2011 saw many leading insurers cut costs by laying off staff and consolidating operations. However, the study does not make a correlation between these cost-cutting measures and the industry-wide lower customer satisfaction ratings.

Interestingly, auto insurance companies may not need to worry about the lower customer satisfaction numbers. A January 2012 study published by Forbes revealed that 65% of “very dissatisfied” insured drivers plan to renew with the same insurance company anyway.

The J.D. Power study polled more than 3,700 car insurance customers who filed a car insurance claim. Polling was conducted in January and February 2012.