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Auto Insurance Satisfaction Spotty

J.D. Power survey finds repair times have improved but premiums are up. There’s also room for improvement on communication during the process.

October 29, 2024
Auto Insurance Satisfaction Spotty

In a positive turn of events, average repair cycle times have fallen by one day year-over-year to 22 days.

Credit:

Pexels/Mikhail Nilov

2 min to read


Auto repair costs claims through insurance have spiked in the past two years, sparking a jump in premiums.

J.D. Power research found that the average repair cost is up 26% and the resulting insurance premium bump 15%.

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In a survey of nearly 10,000 auto insurance policy holders on claims satisfaction, 48% said their premiums had increased in the previous 12 months, almost half of the increases tied to claims. Claims-related premium increases bring a 100-point decline in satisfaction scores, an effect that almost doubles among baby boomers and older consumers, J.D. Power said.

Meanwhile, in a positive turn of events, average repair cycle times have fallen by one day year-over-year to 22 days. 

There’s room for improvement on communication, though. The study found that digital claims steps are received unevenly across various parts of the process and across generations. Some are highly satisfied with moving through the process via insurer mobile applications, but they represent only 13% of consumers, said J.D. Power, which emphasized that good communication during claims processing is key to satisfaction.

“… 80% of auto insurance customers who have poor claims experiences have already left or say they plan to leave that carrier,” said Mark Garrett, director of global insurance intelligence. “That makes this year’s significant improvement in repair cycle times very good news for insurers and their customers. However, premium increases have created a new challenge for insurers as trust is eroding and affecting the way customers view their claims.”

LEARN MORE: September Brings Car Insurance Reprieve

Originally posted on F&I and Showroom

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