Auto insurance buyers are less happy with their insurers in the latest satisfaction survey released by J.D. Power and Associates as price increases take a toll on carriers.
The survey of 25,000 auto insurance policyholders, conducted during February and March of this year, measured five factors for consumer satisfaction: interaction, policy offerings, billing and payment, price, and claims.
J.D. Power said price was the main driver in declining customer satisfaction, with the industry satisfaction average moving from a high of 801 last year to 777 this year.
Satisfaction with price declined 30 points over last year, the Westlake Village, Calif.-based marketing information services firm said.
"Now that the market has stabilized, consumers are feeling more in control of their finances and have become more aware of and sensitive to the rate increases that have started to occur since the recent recessionary period," said Jeremy Bowler, senior director of the insurance practice at J.D. Power, in a statement.
"As a result, customers are considerably less satisfied with their insurer and their rates, and have begun shopping for new insurers at unprecedented high levels not seen since prior to the recession," he added.
For the 11th consecutive year, Amica Mutual ranked highest in the satisfaction survey with a score of 849, two points off of last year's scale where 1,000 is the highest.
According to Highline Data, part of Summit Business Media Company, which also owns Tech Decisions National Underwriter, the Lincoln, R.I.-based company had net written premiums of $1.4 billion in 2009 and net income of $122 million. The company's primary business is auto and homeowners insurance on the property and casualty side.
The next top five companies, in order of index ranking in the J.D. Power survey, were Erie Insurance, Auto-Owners Insurance, Shelter, State Farm and GEICO.
Last year, the top five, in order of index ranking, were State Farm, Shelter, Auto-Owners, Erie Insurance and COUNTRY.
While GEICO moved up in the overall rankings, its index score fell from 806 in 2009 to 793 this year.
State Farm, which was at 831 last year, fell to 795.
Erie, the number-two carrier this year, saw its index score go from 823 in 2009 to 815.
Auto Owners went from 825 to 813, and Shelter dropped from 828 to 807.
J.D. Power said the number of customers that said they experienced an increase in premiums increased from 17 percent last year to 22 percent this year. One in 10 policyholders who experienced a premium increase said they received no advance notice from their carrier.
Two other insurers, USAA and New Jersey Manufacturers, were also rated high on the J.D. Power customer satisfaction list but were not included in the ranking because the companies are not open to the general public.
USAA, which is limited to U.S. military personnel and families, came in with a score of 899. NJM, which is limited to members of the New Jersey Business & Industry Association and state employees, scored 849.
However, both scores were off from last year. In 2009, USAA score was 900 and NJM scored 869.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.