Maintaining a comprehensive and consistent dialogue with the consumer throughout the claims process is critical for insurance carriers that desire to achieve customer satisfaction with the collision repair process, according to J.D. Power and Associates.
In its 2005 Collision Repair Satisfaction Study, the Westlake, Calif.-based marketing information services firm said insurance carriers that meet customer expectations through effective communication generally achieve higher levels of overall satisfaction.
For example, J.D. Power said customers who were given an explanation of the parts to be used in their vehicle repair were considerably more satisfied than customers who were not informed. More than 75 percent of customers indicated they were informed or engaged in such discussions.
"Customers want to know and have a say in what happens in the repair process of their vehicle," said Jeremy Bowler, senior director of the insurance practice for J.D. Power. "Basic communication between the insurance company and the customer regarding what will be done to repair their vehicle, part types the body shop is going to use and how long repairs will take goes a long way to increase customer satisfaction."
The study measured customers' satisfaction with their repair experiences by examining three factors: body shop, claims estimation and rental car.
For a second consecutive year, Erie Insurance ranked highest in consumer satisfaction with collision repair. Erie received particularly high ratings from customers for the repair facility. Following Erie in the rankings are AAA Michigan Auto Club Group and State Farm, which improved its index score from last year.
"Erie customers report faster repair times and a higher probability of their vehicle being repaired correctly the first time," said Mr. Bowler. "They also cite continuous contact from the provider throughout the claims process, which is critical in achieving overall satisfaction."
USAA achieved a satisfaction score higher than Erie Insurance but was not included in the rankings because it is open only to the U.S. military community and their families.
The study found that although the number of auto insurance claims is on the decline, the average cost to repair an individual vehicle has been increasing.
"Rising repair costs have increased the likelihood that damages exceed the vehicle's market value, causing an insurance carrier to total the vehicle rather than repair it," said Mr. Bowler. "However, claims settlement satisfaction is considerably lower among customers who have had their vehicles totaled, often because they owe more on their vehicle loan than the settlement amount."
The 2005 Collision Repair Satisfaction Study is based on 5,679 responses from consumers who had collision repair or body work performed on their vehicles in the past 12 months.
A more detailed listing of the results by insurance provider, as well as tips for consumers on what to do when filing an auto collision claim, can be found at the J.D. Power Consumer Center at www.jdpower.com/cc.
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