Study: Americans are satisfied with their car insurance, but not with its price

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Americans are satisfied with the service they receive from their car insurance companies. They are less satisfied with what they pay for it.

JD Power’s annual US Auto Insurance Study found that Americans are about as satisfied with their auto insurance this year as they were last. The study, now in its 23rd year, “examines customer satisfaction across five factors: billing process and policy information; complaints; interaction; policy offers; and the price.

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JD Power analysts spoke to 36,935 auto insurance customers. They found that, on a 1,000-point scale, insurers averaged an overall satisfaction score of 834. Last year’s results showed an average of 835 points, mostly flat.

However, drivers were less satisfied with what they paid for insurance. Prices scored 769, up from 774 last year.

Insurance gets more expensive as repairs get more expensive

Price increases may not be the fault of insurers. Most of the cost of car insurance comes from actuarial tables. Cars are more and more expensive, which means accidents are more and more expensive. Even minor damage can cost more to repair as cars become more complex.

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Most car windshields today, for example, are no longer simply glass. Many are equipped with sensors for driver assistance systems. Some function as display screens for heads-up displays. This additional technology can make repairs much more expensive.

Although insurers may be unable to avoid price increases, JD Power’s numbers show they can improve customer satisfaction through transparency. Companies that warned their customers about impending price increases had a 37% higher overall satisfaction score.

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Customers were also happier when they signed up for a telematics program that allowed them to lower their rates by driving safely. Users who used one of these systems, which typically use the accelerometer feature built into most smartphones to detect hard braking and rapid acceleration, were 59 points happier with the price they paid for the device. ‘car insurance.

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