2009 Auto Claims Satisfaction Study

For many drivers, navigating the auto insurance claims process following an accident can be a more harrowing experience than the accident itself. Difficulty reaching your insurance company or agent, long wait times at the repair facility, hassles getting a rental car, and a lower-than-expected scrap value on your damaged auto can all contribute to customer dissatisfaction with the insurance claims process. Fortunately, a new study by J.D. Power and Associates suggests that things are improving.

According to the company’s recently released 2009 Auto Claims Satisfaction Study, auto insurance customers are significantly more satisfied with the claims process in 2009, compared with 2008. The study finds that overall satisfaction among auto insurance claimants averages 842 on a 1,000-point scale, an increase of 24 points from 2008. This improvement is driven in part by increased satisfaction with settlement of the claim, as claimants are more satisfied with the time it took to settle the claim and the fairness of the claim settlement this year. In addition, cycle time has decreased to 12.6 days in 2009 from 14.8 days in 2008.

“The current economic situation appears to be having a positive effect on the auto claims experience,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “The rate of road accidents is generally down, and consequently, fewer customers are filing claims and getting their vehicles repaired. As a result, repair facilities have a lower volume of work, which has considerably shortened the time it takes to schedule and start repairs, all of which contribute to the two-day shortening of claim cycle time. In fact, 96 percent of claimants report having received a repair appointment at their desired date and time, which has a significant impact on satisfaction.”

The recent improvements in claims satisfaction not only help drivers, but help auto insurance providers, as more satisfied customers are considerably more likely to both renew with their insurer and recommend their insurer to others, compared with less satisfied customers. According to the study, among customers whose insurers achieve high levels of satisfaction (scores of 858 or higher), 65 percent say they “definitely will” renew with their insurer, while only 43 percent of customers whose insurers have low satisfaction levels (scores of 818 or lower) say the same. In addition, 57 percent of customers whose insurers achieve high levels of satisfaction say they “definitely will” recommend their insurer to others, compared with only 35 percent of customers whose insurers have low satisfaction levels.