In a study released last month by J.D. Powers and Associates, claim handling was listed as one of the major behaviors exhibited by insurers that directly impacts customer satisfaction and loyalty.

The report, called the “2006 National Auto Insurance Study,” said that for customers who file a physical damage claim with their auto insurer, time is one of the most important qualities. The study recommended a same-day response to the first notice of accident, followed by a settlement within a week and repairs completed within two weeks as the standard by which all insurers should be measured. Why? Satisfaction with claim-handling practices drives 44 percent of the overall impression of their insurer for customers who recently filed an auto claim.

The study also identified and tracked performance on other specific and measurable behaviors on the part of the insurer in regards to customer satisfaction levels. For example, auto insurance customers are more satisfied when they only have to contact their insurers once to resolve an issue; satisfaction declined significantly with each additional contact. When a return call was required, those who received one when promised rated their insurers 135 points higher than those who did not.

Overall customer satisfaction with auto insurers improved for a fourth consecutive year, although the rate of improvement has slowed, according to the report. Satisfaction was measured based on performance in five factors: interaction, billing and payment, policy offerings, price, and claims (see Company Index Ranking for complete results).

J.D. Powers' study was based on responses from 14,066 auto insurance policyholders who were surveyed between April and May 2006.

Company Index Ranking

(Out Of 1,000)

Amica Mutual: 871
Erie: 825
State Farm: 823
GEICO: 811
American Family: 803
Automobile Club of South. Cali.: 803
Encompass: 800
INDUSTRY AVERAGE: 800
Allstate: 799
The Hartford: 793
MetLife: 791
St. Paul Travelers: 790
Calif. State Automobile Assoc.: 788
Safeco: 782
Automobile Club Group: 779
Liberty Mutual: 778
Nationwide: 776
21st Century: 774
Farmers: 773
Progressive: 773
Allied: 765
Mercury: 765
GMAC: 752
AIG: 740
USAA: 913*

*USAA is an insurance provider open only to U.S. military personnel and their families.

Source: J.D. Powers and Associates

Special Reports /

J.D. Powers Rates Auto Claim-Handling Practices

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