Amica Mutual Tops Auto Claims Satisfaction Survey

A J.D. Power and Associates survey has ranked Amica Mutual first among 21 insurers for customer satisfaction in handling of auto damage claims.

The same poll also reported that nearly one of every five auto insurance customers say they consider switching carriers after going through the collision claim process.

John Tews, spokesman for J.D. Power in Westlake Village, Calif., said this is the first time for this award.

For seven years straight Amica has won the J.D. Power award for overall customer satisfaction for its auto insurance, and for five years in a row the company has won the award for its homeowners insurance service, according to Mr. Tews.

The new J.D. Power Collision Repair Satisfaction Study for 2006 asked 5,752 customers who had a collision within the past 12 months involving damage or a total loss of their vehicle to evaluate their insurer.

“Filing an insurance claim is a critical moment of truth that shapes a customer's overall perception of their insurer,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power, in a statement.

Mr. Bowler added that filing a claim is often “the first time customers truly become familiar with their insurance policy. Misconceptions about what is covered by the auto policy, or what to expect during the claim and repair processes, can lead to significantly lower customer satisfaction, which in turn increases the likelihood that the customer may consider switching carriers in the future.”

The study looked at three factors that drive customer satisfaction with the repair experience, which are, in order of importance: claims/estimation, 62 percent of respondents; body shop, 36 percent; and rental car, 2 percent.

Seven percent of customers did not file a claim with their insurer after their most recent collision.

According to the survey, common reasons for not filing include: the insurance deductible was more than the cost of the repairs; a concern that the carrier would increase premium after the claim; advice from an insurance agent not to file.

With a score of 821 index points on a 1,000-point scale, Providence, R.I.-based Amica Mutual ranked highest in satisfying claimants in the collision repair process. Erie, Pa.-based Erie Insurance, with a score of 809, and Bloomington, Ill.-based State Farm, with a score of 800, followed Amica Mutual in the overall ranking.

In terms of market ranking, by line of business for personal auto physical damage coverage in direct premium written (DPW), according to National Underwriter's Highline Data Service, Amica ranks 27th, Erie ranks 18th and State Farm is number one.

On the low end of the J.D. Power survey was New York-based American International Group with a score of 705, and Los Angeles-based Mercury General, which was dead last with a score of 703.

In market terms for that line, AIG is ranked 8th and Mercury General is 13th.

USAA, an insurance provider open only to the U.S. military community and their families, and therefore not included in the rankings, had the highest ranking at 846. The company is ranked 7th in DPW for this line of business.

Mr. Bowler explained to National Underwriter that companies that received less than 100 responses in the survey were excluded from the results.

He added that the online survey strives to include as many carriers as possible, but some insurers did not make it into the survey due to low claims incidence or market share.

The study also found that claimants whose vehicles are totaled rather than repaired are significantly more satisfied if their insurer gives them a clear explanation of why the vehicle is totaled and how they calculated the settlement amount.

Nearly 85 percent of total loss claimants receive an explanation of why their vehicle is being totaled and how their actual cash value settlement is derived.

J.D. Power is a business unit of McGraw-Hill Companies.