U.S. Auto Insurance Customers Grow Happier With Direct-to-Consumer Models: J.D. Power

June 18, 2019

U.S. auto insurance consumers are quite happy about their coverage, and a growing shift to direct-to-consumer models has driven much of their good feelings, J.D. Power said in a new report.

Overall customer satisfaction with their carriers grew higher in 2019. J.D. Power said that the average is at a record-high level of 831 out of 1,000 points. Out of that number, the highest overall satisfaction came from the 23 percent of customers who use direct distribution models.

“Auto insurance customers have more access, control and visibility into the details of their policies, and that is translating into record-high levels of customer satisfaction,” Robert Lajdziak, senior consultant for Insurance Intelligence at J.D. Power, said in prepared remarks. “As customers take greater control of their auto policies, it’s also becoming more important for insurers to offer superior digital experiences and easy access to account management features such as bill pay, policy information and an integrated experience for customers who bundle multiple policies.”

J.D. Power found that satisfaction levels were much higher, for example, when auto insurance customers bundled their auto policy with other coverage such as home and life insurance (837) than without bundling (812). Bundling helped boost overall satisfaction scores, advocacy rates and likelihood-to-renew levels, but J.D. Power argued that insurers haven’t done well at making bundling easier.

Other study findings:

The report – J.D. Power’s 2019 U.S. Auto Insurance Study – looked at five factors affecting customer satisfaction: interaction, policy offerings, price, billing process and policy information. J.D. Power compiled the study based on responses from 42,759 auto insurance customers from February through April 2019.

Source: J.D. Power