Auto insurance

Best Car Insurance Carriers for Customer Satisfaction

What determines the customer satisfaction score?

There are many customer satisfaction surveys and rating systems available. One of the best known and reputable is JD Power. For more than 50 years, JD Power has provided consumer research, data and analysis. JD Power is best known for its automotive research. You’ve probably seen countless car advertisements touting a given car’s JD Power ratings. Subaru was the first automaker to mention its JD Power rating in an ad, during the 1984 Super Bowl.

Since then, many companies around the world have followed suit, announcing their JD Power rankings and using the data to develop their customer relationship strategies. JD Power creates benchmark studies based on consumer insights. By surveying consumers, JD Power analyzes and then ranks companies in dozens of categories across nine industries each year. It then rewards the most successful companies.

JD Power has been examining customer satisfaction for the auto insurance industry in the United States for 23 years. They rank auto insurers on the following five factors (in alphabetical order):

  • Billing process and policy information
  • Complaints
  • Interaction
  • Font offers
  • Price

The 2022 United States Auto Insurance Study is based on responses from 36,935 auto insurance customers and was conducted from January to April 2022.

Why is it important to know customer satisfaction?

The JD Power Auto Insurance Satisfaction Study shows how customers perceive their auto insurer. Customer perception is based on the ability of their auto insurer to meet their expectations both nationally and regionally. The study examined the relationship between customer satisfaction and auto insurer financial performance, as well as retention levels. The study also identified best practices used by car insurance companies and their direct link to customer satisfaction.

In assessing overall customer satisfaction with their auto insurance companies, JD Power asked these questions:

  • What are the top drivers of auto insurance customer satisfaction?
  • What creates the most satisfying customer experience?
  • What are the major trends on which insurers must act to better satisfy their customers?
  • What impact are digital channels and changing demographics having on insurers and their current processes with their customers?
  • Which insurers provide the best experiences for their customers and what are they doing to achieve this?

Overall, JD Power found that not all drivers were happy with their auto insurance company due to increased premiums. This increase is due to soaring costs for used cars, a record number of serious collisions and soaring repair costs. The study revealed that customer satisfaction with the price of auto insurance has dropped sharply. However, many auto insurers have been able to improve customer engagement levels. This helped keep overall customer satisfaction at a similar level to last year’s survey.

Which auto insurance companies are rated highest for customer satisfaction?

For the 2022 United States Auto Insurance Study, here are the most customer-satisfied companies with auto insurance in 11 geographic regions. The score is out of 1000. The best companies are generally regional insurance companies.

  • California:
    • Wawanesa (879) (for a third consecutive year)
    • Regional average: 820
  • Central:
    • Accommodation (866) (for a second consecutive year)
    • Regional average: 835
  • Florida:
    • The Hartford (860)
    • Regional average: 832
  • Mid-Atlantic:
    • Erie Insurance (867)
    • Regional average: 839
  • New England:
    • Amica Mutuelle (862) (for a 10th consecutive year)
    • Regional average: 823
  • New York:
    • New York Central Mutual (834)
    • Regional average: 822
  • Centre-North:
    • Erie Insurance (876) (for a second consecutive year)
    • Regional average: 838
  • North West:
    • The Hartford (842)
    • Regional average: 829
  • South East :
    • Farm Bureau Insurance: Tennessee (876) (for an 11th consecutive year)
    • Regional average: 849
  • South West :
    • State Farm (848)
    • Regional average: 827
  • Texas:
    • Texas Farm Bureau (873) (for an 11th consecutive year)
    • Regional average: 844

USAA scored 879 out of 1,000, which would make it number one in all 10 regions and tied for first in one. However, USAA is not eligible for ranking because it does not meet the study award criteria.

Respondents said any increase in premium prices could be offset if insurers were transparent and informed them of price increases in advance. The study also found that usage-based insurance, which provides a discount based on your driving behavior, is growing rapidly. The number of drivers adopting these programs is at an all time high. Overall customer satisfaction has increased significantly among drivers who use them.

Which companies receive the lowest customer satisfaction ratings?

Here are the auto insurance companies that have received the lowest customer service ratings from JD Power.

  • California:
    • Kemper (748)
    • Regional average: 820
  • Central:
    • Nationwide (800)
    • Regional average: 835
  • Florida:
    • Progressive (810)
    • Regional average: 832
  • Mid-Atlantic:
    • Plymouth Rock Insurance (789)
    • Regional average: 839
  • New England:
    • Allstate (787)
    • Regional average: 823
  • New York:
    • Liberty Mutual (798)
    • Regional average: 822
  • Centre-North:
    • Liberty Mutual (807)
    • Regional average: 838
  • North West:
    • Farmers (802)
    • Regional average: 829
  • South East :
    • Farmers (828)
    • Regional average: 849
  • South West :
    • CSAA Insurance Group (798)
    • Regional average: 827
  • Texas:
    • Farmers (819)
    • Regional average: 844

According to the JD Power study, domestic auto insurers tend to have the lowest customer satisfaction scores. Farmers has the lowest in three regions, Liberty Mutual in two, and Allstate, Nationwide and Progressive each in one.

The study revealed that the price of a policy has a significant impact on customer satisfaction. However, if car insurers are proactive and inform customers in advance, it can help reduce the negative effects of rising costs. The call has proven to be the most effective way to notify customers of any upcoming price increases. In addition to offering digital tools, insurers who use agents and customer representatives can also increase customer satisfaction.