J. D. Power 2014 Auto Insurance Company Ratings
J.D. Power & Associates is a global market research firm that has been providing consumers with trusted customer satisfaction ratings and research since 1968. These customer satisfaction ratings, along with ratings given by insurance rating organizations, give the consumer an effective tool for judging how an insurance company measures up as determined by its customers. These ratings are a resource trusted by both consumers and those within the insurance industry.
The 2014 J.D. Power & Associates auto insurance company ratings have been completed and the results are shown in the areas of customer purchase experience as well as overall customer satisfaction.
Customer Purchase Experience
The J.D. Power 2014 U.S. Insurance Shopping Study, released in April of 2014, found that 30% of auto insurance customers shopped for a new insurance provider in 2013. Of this 30%, only 36% ultimately ended up switching insurance carriers. A poor customer service experience with the company was given as the number one reason for shopping for a new auto insurance policy followed by insurance consumers who shopped to find a cheaper auto insurance premium. On average, customers were shown to receive a savings of $300 on an auto policy by switching insurers.
Customer purchase experience is an important factor for insurance companies in attracting new auto insurance customers as well as retaining existing customers.
Erie Insurance ranks first in the overall customer purchasing experience for the second year running. State Farm and MetLife tied for second place while American Family and Ameriprise tied for fourth place in overall satisfaction in the customer purchasing experience.
Overall Customer Satisfaction
Overall customer satisfaction seems to be up in 2014 as is reflected by these Regional Customer Satisfaction Index Ratings listed by the top five in each of the eleven regions (It should be noted that USAA is open to military personnel only, therefore, although included in this study, USAA was not ranked.):
Central Region: Auto-Owners Insurance, Shelter, State Farm, GEICO, Farm Bureau Mutual
Florida Region: The Hartford, Auto-Owners Insurance, Progressive, MetLife, Allstate
Mid-Atlantic Region: The Hartford, Erie Insurance, GEICO, State Farm, Allstate
New England Region: Amica Mutual, State Farm, Nationwide, The Hartford, Allstate
New York Region: GEICO, State Farm, New York Central Mutual, The Hartford, Liberty Mutual
North Central Region: Auto-Owners Insurance, State Farm, Grange Insurance, Erie Insurance, COUNTRY
Northwest Region: PEMCO Insurance, The Hartford, State Farm, Mutual of Enumclaw, American Family
Southeast Region: Tennessee Farm Bureau, North Carolina Farm Bureau, Auto-Owners Insurance, Alfa Insurance, Kentucky Farm Bureau
Southwest Region: State Farm, Liberty Mutual, The Hartford, GEICO, American Family
Texas Region: Texas Farm Bureau Insurance, Allstate, State Farm, GEICO, Progressive
Some findings of the 2014 study of auto insurers were noteworthy. Overall, customer loyalty was up to 51% of auto insurance customers who say they will renew with their current auto insurance carrier.
There are several factors involved here including the factor that many insurance companies have an increased focus on customer interaction and satisfaction. Also, over 60% of auto insurance customers report interacting with their company through digital means, such as an insurance company website or through a mobile insurance application.
One other interesting finding among auto insurance is the comparison of the rate of improvement between large auto insurance companies and smaller auto insurance companies. Large companies improved in the area of overall customer satisfaction at a rate of 10 points higher than last year; whereas, small insurance companies improved at a rate of 41 points higher than last year’s rankings.