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J.D. Power and Associates Releases 2006 National Auto Insurance Survey

August 30, 2006

Westlake Village, Calif.—Auto insurance companies with high levels of customer satisfaction benefit from customer behaviors that have positive financial implications, according to the recently released J.D. Power and Associates 2006 National Auto Insurance Survey.

According to Automotive Digest, the study identifies and tracks performance on numerous specific, measurable behaviors on the part of the insurer where there are clear breakpoints in customer satisfaction levels. For example, auto insurance customers are more satisfied when they only have to contact their insurer once to resolve an issue. Satisfaction declines with each additional contact.

Other behaviors that directly impact customer satisfaction include:

Bundling

Auto insurance customers who bundle other policies with the same insurer, are more likely than non-bundlers to be satisfied with their auto insurer’s policy offerings and renew their policies at an 11 percent higher rate.

Claims

For customers who file a physical damage claim with their auto insurer, time is critical. Same-day response to the first notice of the accident, followed by a settlement within a week and repairs completed within two weeks, represent the best practice.

Annual policy reviews

Customers who have their policy needs reviewed each year report satisfaction scores that are nearly 80 points higher than those who did not.

The study finds that overall customer satisfaction with auto insurers improves for a fourth consecutive year, although the rate of improvement has slowed. Overall satisfaction is measured on performance in five areas: interaction, billing and payment, policy offerings, price and claims.

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