As repairable and total-loss auto claims are being paid faster, policyholders and claimants report being a little happier about the entire claims process.

The J.D. Power and Associates 2013 U.S. Auto Claims Satisfaction Study-Wave 1, based on responses from more than 3,000 auto-insurance customers who settled a claim within the past six months, says customer satisfaction with the auto-claims process registered at 861 (on a 1,000-point scale) in Q4 2012, up from 855 for the fourth quarter of 2011. The hike in overall satisfaction, the firm says, can be attributed largely to an 11-point improvement in settlement satisfaction.

Driving smoother settlements is a decrease in the average time auto claimants wait to be compensated by insurers. J.D. Power reports that claimants’ average wait time for payment was 13.9 days in the fourth quarter of 2012, compared to 16.4 days for the same period in 2011.

While the average time to pay claimants for a repairable claim (11.8 days) decreased by 1.3 days from Q4 2011, the most notable decrease is in the time required to pay total-loss claims—down by an average of 5.1 days to 18.5 days.

“Regardless of the claim type, the faster the claimant is paid and can move forward with a repair or to replace their vehicle, the more likely they are to be satisfied,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “In addition, satisfaction with the claims professional is at an all-time high, indicating that the process is becoming smoother, with more frequent updates throughout contributing to a much more satisfying experience.”

The study measures claimant satisfaction with the claims experience for auto physical-damage loss. Depending on the complexity of the claim, a claimant may experience some or all of the following, which are measured in the study: first notice of loss; claim-service interaction; damage appraisal; repair process; rental experience; and settlement.

Special Reports /

J.D. Power: Auto Claimants Being Paid Faster; Satisfaction Up

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