Auto Claims Satisfaction Rebounds, J.D. Power Says

After reporting earlier this year that auto insurance claims satisfaction was at the lowest level in nearly a year, J.D. Power & Associates said today that satisfaction has rebounded.

Overall customer satisfaction has increased by 10 points (on a 1,000-point scale) to 852 from the first quarter of 2012. Satisfaction in all factors has increased in the second quarter, compared with the first quarter, with settlement satisfaction leading the way. The amount consumers paid over the deductible decreased by $36 in the second quarter. Settlement satisfaction falls significantly among claimants paying in excess of $300 above and beyond their deductible, with satisfaction 89 index points lower than among those who pay only their insurance deductible.

"The amount spent out-of-pocket most definitely affects the perception of fairness of a settlement, further influencing satisfaction with the overall auto claims process," says Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, in a statement. "Additionally, the settlement factor is influenced highly by the clarity and thoroughness of the settlement explanation given to the customer by the insurance company. If the customer understands the process and what they are paying for, they tend to have higher satisfaction with their experience."

Claim duration, defined as the time from the reporting of the claim to return of the vehicle to the customer, decreased by nearly a half-day from quarter to quarter, from 14 days to 13.7.

"From the time a person notifies their insurer of the accident or loss, on average, vehicles were getting to the repair facility half a day faster, expediting appraisals such that settlement explanations also occurred an average of half a day sooner—both key metrics for delivering a satisfying claims experience," Bowler adds.

The report, 2012 U.S. Auto Claims Satisfaction Study—Wave 3, is based on responses from more than 2,600 auto insurance customers who filed a claim within the past six months.

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio