Amica Mutual Leads Auto Insurance Industry in Customer Satisfaction
AGOURA HILLS, Calif.--Sept. 18, 2001--Amica Mutual ranks highest in overall customer satisfaction for the second consecutive year, according to the J.D. Power and Associates 2001 National Auto Insurance Study(SM) announced today.
Erie Insurance Group and State Farm closely follow Amica Mutual in customer satisfaction, ranking significantly higher than the industry average. USAA, an insurance provider open only to active-duty, retired and separated military members and their immediate families and therefore not included in the rankings, achieved a satisfaction ranking equal to that of Amica Mutual.
In general, customer satisfaction with auto insurance providers decreased significantly, with 20 of the 21 companies surveyed decreasing in satisfaction from the previous year. Amica Mutual is the only carrier that did not experience a decline in satisfaction.
Though consumers report their insurance carriers are resolving their claims and problems faster, an industrywide hike in insurance premiums has had a negative impact on customer satisfaction, according to the study.
"Prior to late last year, insurance companies were doing a great job of holding insurance costs down, at times even reducing premiums," said Frank Forkin, partner at J.D. Power and Associates. "However, this year, the study finds the average annual insurance premium increased by an average of $75 per year."
Although the study indicates that more than one in three consumers will remain with their current auto insurance provider, many will consider switching to a new provider if they can save money.
The primary drivers of overall satisfaction with an auto insurance provider include: the value of services offered; the ability of the provider to fulfill commitments; the ease of working with the insurer; claims; billing practices; how well company personnel and agents treat consumers; price; and problem resolution.
"As one would expect, the notion of paying more without receiving any additional benefits does not sit well with consumers," Forkin said.
While consumers value the traditional agent/policyholder relationship, they also indicate they're relying more on the Internet to gather facts and compare rates on auto insurance.
Among consumers who shopped for auto insurance in the past 12 months, 26 percent indicate they used the Internet during the shopping process, compared with only 14 percent last year. In addition, nearly half of consumers who indicate they plan to shop for auto insurance in the next year say they intend to use the Internet during the shopping process.
"People still have a strong attachment to having face-to-face contact with their provider," Forkin said. "Though consumers may be using the Internet more to shop, the vast majority continue to purchase their insurance through an agent or by calling a company directly. Insurance agents must realize that consumers are coming to the table much more informed regarding rates and coverage than ever before."
The 2001 National Auto Insurance Study is based on more than 13,000 responses from auto insurance policy holders who reside in the United States. A more comprehensive listing of the results by insurance provider is available online at the J.D. Power Consumer Center at http://www.jdpower.com/auto/insuranceratings/.
With headquarters in Agoura Hills, J.D. Power and Associates is a global marketing information services firm operating in key business sectors, including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on actual responses from millions of consumers annually.
