Wednesday, 20 March 2013 21:51

Consumers Rate Best Auto Insurers for 2013

Insure.com asked more than 5,600 insurance customers nationwide to rate their satisfaction with their auto, home, health and life insurance companies and 80% of auto insurance customers said they were ‘completely’ or ‘somewhat’ satisfied with their insurers’ customer service.

Insure.com awarded its top 2013 People’s Choice Award to USAA in the auto insurance category. The company scored a 96 overall out of a possible 100. Second place was awarded to Erie Insurance (91.7) and Auto-Owners Insurance (88.1).

The survey ranked insurers in several categories including customer service, value for price paid, percent who would recommend the company, percent who plan to renew, and claims satisfaction (except in the life insurance category).

The top three auto insurers in the claims handling category were the same three that topped the overall satisfaction rating: USAA, Erie, and Auto Owners.

The lowest ranked auto insurer for claims processing was Travelers, followed by 21st Century and Liberty Mutual.

Price was cited by 42% of survey respondents as the most important factor in auto insurance-buying decisions; 21% think customer service is the most important factor. Satisfaction with claims, often a pain point, came in as third most important, with 15%. Knowing how many customers would recommend the company or renew their policies was chosen as most important by 11% each.

Among customers who say they won’t be renewing their auto insurance policies with their current company, only 8% says it is because of dissatisfaction with claims.

• 62% think their price is too high
• 12% think other companies are better
• 10% cite poor customer service
• 9% have ‘other’ reasons

Among consumers who made car insurance claims in the last three years and say they haven’t read any of their auto policy, 61% were ‘completely satisfied’ with the claims process. Of those policyholders who made claims and say they’ve read all of their auto policy, 69% were ‘completely satisfied’ with their claims.

USAA, which sells only to members of the military and their families, scored five stars for customer service and claims in the auto insurance category.
Ken Rosen, senior vice president of claims for USAA, says “the secret sauce is an engaged workforce.”

He says USAA employees are singularly focused on facilitating the financial success of the company’s military members. Rosen says insurers are judged on “that moment of truth,” when the customer has had a car wreck.

All levels of employees at USAA are encouraged to speak up when they spot a problem and to submit ideas for improvement. For example, an employee originally suggested an accident-animation function for USAA’s mobile app. It’s now part of the app and allows members to reconstruct an accident in animation and submit it with their claims. USAA also conducts random surveys of members after they have been on a call with a representative and after they’ve had a claim.

For the full results of the survey, visit insure.com

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