U.S. drivers happier with auto claims in 2009
Last Updated: Friday, November 6, 2009 | 2:24 PM ET
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U.S. auto insurers did a better job dealing with consumers in the first six months of 2009 compared with a year earlier, according to a new study released this week by J.D. Power.
The California-based industry-specific information company reports that in 2009 more American drivers said they were happier with how quickly their accident claims were settled and the fairness of the resulting awards.
During June and July, J.D. Power surveyed 11,616 American auto drivers who submitted major claims to their insurance providers and found that the industry scored 842 out of a possible 1,000 in the current year.
That was an improvement of 24 points versus compared with 2008.
"The current economic situation appears to be having a positive effect on the auto claims experience," said Jeremy Bowler, senior director of J.D. Power's insurance practice.
The period between the initial claim and the final payout dropped more than two full days in 2009, 12.6 days compared with 14.8 days in 2008, J.D. Power found.
Collision drop
The fall in claims time was a result of fewer accidents in the first part of 2009, resulting in lower claims volumes with insurance companies and smaller numbers of damaged cars at auto shops, Bowler said.
The reduced accident volumes resulted in higher levels of satisfaction for drivers, he said.
"In fact, 96 per cent of claimants report having received a repair appointment at their desired date and time, which has a significant impact on satisfaction," Bowler said.
As a result of the better consumer experience, customers are more likely to renew with their existing providers, he said.
J.D. Power's survey found that 65 per cent of respondents who were happy with their claims process said they were "likely" to renew their contracts with existing providers. By contrast, only 43 per cent of drivers who were unsatisfied with their service said they would renew with their insurer.
Canadian insurance hike
In the past, J.D. Power has conducted a similar survey concerning Canadian insurers, but has not issued a report for 2009.
The company did question Canadian drivers regarding insurance increases and found that 38 per cent of consumers reported premium increases so far in 2009, with an overall average jump of $200.
The Canadian survey, released in September, asked more than 7,000 drivers and was taken in August.
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