General

Auto insurance with the highest customer satisfaction

Auto insurance with the highest customer satisfaction

What determines the customer satisfaction rate?

There are many customer satisfaction surveys and rating schemes available. One of the most famous and renowned is JD Power. JD Power has been providing consumer research, data and analytics for over 50 years. JD Power is best known for his automotive research. You’ve probably seen countless car commercials that brag about a particular car’s JD Power rankings. Subaru was the first auto company to feature its JD Power rankings in a commercial during the 1984 Super Bowl.

Since then, many companies around the world have followed suit by advertising their JD Power rankings and using the data to develop their customer relationship strategies. JD Power makes benchmark studies based on consumer insights. By conducting consumer research, JD Power analyzes and ranks companies each year in dozens of categories across nine industries. Prizes are then awarded to the best performing companies.

JD Power has been researching customer satisfaction for the US auto insurance industry for 23 years. They rank auto insurers on the following five factors (in alphabetical order):

  • Billing Process and Policy Information
  • claims
  • Interaction
  • Policy offer
  • Price

The 2022 U.S. auto insurance study is based on responses from 36,935 auto insurance customers and was conducted from January to April 2022.

Why is it important to know customer satisfaction?

The JD Power Auto Insurance Satisfaction Study shows how customers view their auto insurer. Customer perception is based on their auto insurer’s ability to meet their expectations, both nationally and regionally. The study examined the relationship between customer satisfaction and how well the auto insurer was performing financially, as well as retention levels. The study also identified the best practices used by auto insurance companies and how they are directly related to customer satisfaction.

When evaluating overall customer satisfaction with their auto insurance companies, JD Power asked the following questions:

  • What are the key drivers of auto insurance customer satisfaction?
  • What makes for the most satisfying customer experience?
  • What are the key trends that insurers need to capitalize on to better satisfy their customers?
  • What impact are digital channels and changing demographics having on insurers and their current processes with their customers?
  • Which insurers offer their customers the best experiences and what are they doing to achieve that?

Overall, JD Power found that drivers across the board were dissatisfied with their auto insurance company because of the increase in premium costs. This increase was driven by the skyrocketing cost of used cars, a record number of serious collisions and rising repair costs. The survey showed that customer satisfaction with the price of car insurance declined sharply. However, many auto insurers were able to improve customer engagement. As a result, overall customer satisfaction remained at a level comparable to last year’s survey.

What are the Top Rated Auto Insurance Companies for Customer Satisfaction?

For the 2022 U.S. auto insurance study, here are the companies with the highest customer satisfaction rates with auto insurance across 11 geographic regions. The score is out of 1000. The top companies are typically regional insurance companies.

  • California:
    • Wawanesa (879) (for the third consecutive year)
    • Region average: 820
  • Central:
    • Shelter (866) (for the second consecutive year)
    • Region average: 835
  • Florida:
    • The Hartford (860)
    • Region average: 832
  • Mid-Atlantic:
    • Erie Insurance (867)
    • Region average: 839
  • New England:
    • Amica Mutual (862) (for the 10th consecutive year)
    • Region average: 823
  • New York:
    • New York Central Mutual (834)
    • Region average: 822
  • North Central:
    • Erie Insurance (876) (for the second consecutive year)
    • Region average: 838
  • North West:
    • The Hartford (842)
    • Region average: 829
  • Southeast:
    • Farm Bureau Insurance: Tennessee (876) (for the 11th consecutive year)
    • Region average: 849
  • Southwest:
    • State Farm (848)
    • Region average: 827
  • Texas:
    • Texas Farm Bureau (873) (for the 11th consecutive year)
    • Region average: 844

USAA scored 879 out of 1000, which would make it number one in all 10 regions and the first in one. However, USAA is not eligible for rank because it does not meet the study award criteria.

Those surveyed said that any price increase in premiums could be offset if insurers are transparent and inform them in advance of price increases. The survey also found that consumption-based insurance, which offers discounts based on your driving habits, is growing rapidly. The number of drivers using these programs is unprecedented. Overall customer satisfaction has increased significantly among the drivers who use them.

Which companies get the lowest customer satisfaction scores?

These are the auto insurance companies that have received the lowest customer service ratings by JD Power.

  • California:
    • Kemper (748)
    • Region average: 820
  • Central:
    • rural (800)
    • Region average: 835
  • Florida:
    • Progressive (810)
    • Region average: 832
  • Mid-Atlantic:
    • Plymouth Rock Insurance (789)
    • Region average: 839
  • New England:
    • all state (787)
    • Region average: 823
  • New York:
    • Freedom Mutual (798)
    • Region average: 822
  • North Central:
    • Freedom Mutual (807)
    • Region average: 838
  • North West:
    • Farmers (802)
    • Region average: 829
  • Southeast:
    • Farmers (828)
    • Region average: 849
  • Southwest:
    • CSAA Insurance Group (798)
    • Region average: 827
  • Texas:
    • Farmers (819)
    • Region average: 844

Based on JD Power’s research, national auto insurers typically have the lowest customer satisfaction scores. Farmers has the lowest in three regions, Liberty Mutual in two, and Allstate, Nationwide and Progressive each in one.

The study found that the price of a policy has a significant impact on customer satisfaction. However, if auto insurers are proactive and inform customers in advance, it can help with the negative effect that cost increases have. Calling turned out to be the most effective way to notify customers of any price increases. In addition to offering digital tools, insurers that use agents and customer representatives can also increase their customer satisfaction.