Auto insurance customer satisfaction has reached its highest level since J.D. Power launched its study on the sector in 2000, with satisfaction rising the most in the areas of price, and billing and payment.

In J.D. Power's “2014 U.S. Auto Insurance Study,” the firm says overall satisfaction among auto insurance consumers climbed 16 points to 810 on a 1,000-point scale. The study measures customer satisfaction in five areas: interaction, price, policy offerings, billing and payment and claims.

Interestingly, J.D. Power notes the rise in satisfaction comes amid several years of price increases. However, while the number of customers receiving insurer-initiated rate hikes this year was about the same as last year, the amount of the increase was lower—$86 in 2014 compared to $153 in 2013.

In addition, insurers appear to be doing a better job communicated the reasons behind the increases. “A premium increase often triggers shopping behavior, but we're seeing fewer people shopping,” says Jeremy Bowler, senior director of J.D. Power's insurance practice in a statement. “This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they're necessary, and demonstrating the value of their coverage.”

This communication could be a reason why customer satisfaction in the “interaction” category—the biggest driver of overall satisfaction—climbed 13 points for auto insurers.

The largest increases in satisfaction, though, were in the areas of price, up by 20 points, and billing and payment, up by 19 points.

Smaller insurers made bigger gains than larger ones, says J.D. Power. The 20 largest insurers saw a 10-point improvement in 2014 while the smallest insurers—those outside the largest 30—improved by 41 points.

J.D. Power says customer loyalty and advocacy are on the rise, with 51% of customers stating they “definitely will” renew their auto-insurance policy with their current provider, compared to 49% last year. Forty-nine percent say they “definitely will” recommend their insurer to family and friends, compared to 48% last year.

Who ranks highest?

J.D. Power breaks its satisfaction survey down by region. See charts for each region on the following pages.

NOTE: All charts are from the J.D. Power 2014 Auto Insurance Study. For all charts USAA is excluded from the rankings as it is open only to U.S. military personnel and their families. Included in the study but not ranked due to small sample size is Automobile Club Group.

Special Reports /

Auto-Insurance Satisfaction Reaches New High

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