J.D. Power survey says this is the unexpected consequence of rising vehicle prices
Make sure you have the right insurance as vehicle values soar
Overall customer satisfaction increased over the past year to a new record high. (iStock)
This year, rising vehicle prices are resulting in an unexpected consequence: Americans are more satisfied with their car insurance providers. Auto insurance customers who experience a total loss are getting more than they thought they would for their vehicle, according to the J.D. Power 2021 Auto Claims Satisfaction Study.
"The auto insurance industry has been investing heavily in streamlining the claims process and those investments are starting to pay off in the form of faster cycle times and record levels of satisfaction," said Tom Super, J.D. Power head of property and casualty insurance intelligence. "The challenge now will be continuing to drive service improvements as vehicle prices normalize and claim severity continues to increase. Those carriers with more sophisticated claimant triage will be better positioned to navigate the growing cost and complexity ahead."
More than half (66%) of accidents with low- to mid-severity claims involve advanced driver assistance systems (ADAS), and J.D. Power’s survey showed the cost to repair was driven up by 13.5%.
If you aren’t satisfied with your auto insurance, you may want to compare multiple providers to see which one is the best for you. Different car insurance providers give discounts for various reasons, including a clean driving record, a good student discount for young drivers and a loyalty discount. Visit Credible to compare quotes from multiple providers at once and see how much you could save on your car insurance rates.
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Customer satisfaction reaches all-time high
Overall customer satisfaction for auto insurance claims rose to a record high of 800 on a 1,000-point scale, according to J.D. Power’s survey. This is up eight points from 2020 and is the fourth consecutive year of improvement in auto insurance claims satisfaction.
Factors that increased to push up overall auto insurance policy satisfaction included first notice of loss, claim servicing, estimation process, repair process and settlement. In 2021, growth in the first notice of loss and estimation process were the primary factors of customer satisfaction.
The survey showed that drivers whose at-fault status is in dispute have the lowest customer satisfaction scores for their car insurance coverage.
If you are not satisfied with your car insurance company’s customer service or want to see if you could get a lower premium, you should compare other providers and see if you can get a better rate. Visit Credible to compare car insurance policies without affecting your credit score and find the best car insurance company for you.
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Auto insurance companies increase investment in tech
More auto insurance companies are beginning to invest in technology, and their investment is paying off, the survey showed. Claims processed in a low-touch experience from first notice of loss to a direct repair shop saw the highest level of customer satisfaction with an average score of 915.
However, auto insurance companies with a more hands-on interaction with drivers – in which three or more representatives were involved – saw much lower satisfaction levels.
If you are unhappy with your auto insurance provider, consider switching providers to save on your monthly rates. Contact Credible to speak to an auto insurance expert about your coverage options, get car insurance quotes and have your questions about insurance policies answered.
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