A record number of serious collisions, spiking used-vehicle prices and rising repair costs have forced auto insurers to raise rates. This, in turn, has spurred a sharp decline in customer satisfaction with the price of auto insurance, according to a new study from J.D. Power. However, industry efforts to improve customer engagement have kept overall customer satisfaction at a level similar to a year ago.
“The current situation is a tough one for auto insurers, but it is not impossible in the current inflationary environment to build customer satisfaction and retention,” said Robert Lakdziak, J.D. Power director of insurance intelligence. “J.D. Power finds two bright spots in the data for insurers. First, those insurers that are transparent and notify customers in advance of price increases can blunt the negative effects of a price increase. Second, usage-based insurance is growing quickly, with an all-time high number of customers adopting these programs, and due to their experience using them, overall customer satisfaction levels have significantly risen.”
Key findings of the study include:
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The study measured customer satisfaction with auto insurance in 11 geographic regions. The highest-ranking insurers by region were: