Bigger is not always better for auto insurers | finder.com

Bigger is not always better for auto insurers

Richard Laycock 30 April 2018 NEWS

Erie Insurance comes out on top for customer satisfaction for the sixth straight year.

Increased competition for auto insurers is leading to heavy investment in digital capabilities that improve customer experience while shopping for insurance products, according to the latest JD Power 2018 US Insurance Shopping Study.

“We’re entering an era of consumer-centric insurance that will likely be marked by a surge in new digital offerings and serious efforts by insurers to improve the auto insurance shopping experience,” said JD Power Director of Property and Casualty Insurance Practice Tom Super.

And where are insurers looking to make their mark? Online, of course.

“Auto insurers looking to differentiate and win new customers are making big bets with digital — such as in personalization — that meet customers’ growing expectations for improved interaction,” Super said.

The study grades auto insurers based on the satisfaction levels of people who recently went through the process of buying auto insurance, and it’s scored out of 1,000. The score is made up of three key components(in order of importance): price, distribution channel and policy offerings.

Erie Insurance ranked highest in 2018 with a score of 877, which marks its sixth consecutive year on top. Erie was followed by Auto-Owners Insurance (870) and American Family (860).

JD Power customer satisfaction index ranking

Insurer Score
Erie Insurance 877
Auto-Owners Insurance 870
American Family 860
Amica Mutual 855
The Hartford 852
CSAA Insurance Group 850
Liberty Mutual 845
GEICO 844
Nationwide 844
Automobile Club Group 843
Safeco 843
Auto Club of Southern California Insurance Group 839
Industry average 839
Farmers 836
Progressive 831
Esurance 829
State Farm 829
Travelers 829
MetLife 828
AllState 821
Mercury 813
*USAA 886

*USAA for US military members and family

The study found that those choosing to buy their auto insurance directly from the insurer had higher satisfaction levels than those who chose to buy insurance from companies that primarily used independent or exclusive agents.

While the top 10 insurers in terms of total market share now write 72% of all business in the country, they were not among the top three in regards to satisfaction.

See how the JD Power 2018 US Insurance Shopping Study compares with the finder 15 best car insurance companies of 2018.

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