Auto insurance

Revealed – How is US auto insurance customer satisfaction doing in 2022?

As the volume of vehicle collisions slowly returns to pre-pandemic levels, repair costs reach all-time highs, and replacement parts become much harder to find, customer satisfaction levels at the US auto insurance for 2022 has plummeted, a new report from JD Power found.

The report, titled “JD Power 2022 US Auto Claims Satisfaction Study,” noted that customer satisfaction dropped seven points to 873 (on a 1,000-point scale) from 2021, which scored 880, while customers begin to lose patience with the claims process. .

Other key points from the report include:

  • While satisfaction is down for almost every factor in the study, satisfaction with the repair process is down 9 points year over year.
  • This was the first year that a majority of customers cited supply chain issues, such as waiting for a part to be ordered and the repair shop being late, as reasons for the delays.
  • The average repair cycle time is almost 17 days, compared to an average of about 12 days before the pandemic.
  • The average overall satisfaction score for customers with a repair cycle time greater than three weeks is 837 (out of 1,000 points). The score increases to 906 when customers are given an accurate repair time beforehand.
  • 34% of customers said they prefer working with people over using digital contact; satisfaction is also 31 points lower among those who prefer in-person contact for complaints than those who are equally comfortable with digital and in-person contact.
  • When digital is used to provide status updates, overall satisfaction increases by 56 points. But when digital is used to report the first notice of loss, overall satisfaction drops four points.
  • Overall satisfaction scores are lowest (840) when customers interact with three or more representatives during the claims process – down 13 points from 2021.
  • Scores are highest (912) when the insurer uses straight-through technology to automatically approve and route the claim – a number that remained stable from last year.

Auto insurers were also ranked based on their overall customer satisfaction ratings. The top three US auto insurers for customer satisfaction were Amica Mutual (903), NJM Insurance (896) and Erie Insurance (893).

“Insurers are in a tough spot with their own tight profitability and a host of external factors that are causing their customers to be increasingly disappointed with the overall claims experience,” said Mark Garrett, director of JD Power of Global Insurance Intelligence. “The best way forward is for insurers to start focusing on carefully managing customer expectations and refining their digital engagement strategies to guide their customers through the process.”

Read more: Insurance purchases slow in second quarter – report

A TransUnion report released in August found auto insurance purchases in the second quarter of 2022 fell 3%. This drop was mainly due to a sharp decrease in purchases by high-risk consumers, it was noted.