Trust Lacking Among Insureds
But despite rate hikes, insurers can gain trust by managing expectations.
U.S. auto insurance rates are up 11% on average over the past year, but insurers are still losing an average of five cents on the dollar in collected premium.
Pexels/Vlad Deep
Auto insurance consumers’ trust of insurers is low, negatively affecting satisfaction and brand advocacy.
Over half, or 51%, of the more than 41,000 people who responded to a J.D. Power survey said they have low trust in their insurers.
One way auto insurers can gain trust is by better managing rate increases, the survey shows. Remarkably, trust levels were almost exactly the same among consumers who fully understood the reasons for a rate increase and expected it as consumers whose insurers cut their rates, or 735 and 736, respectively, on a 1,000-point scale, J.D. Power said.
That’s significant because, despite U.S. auto insurance rates up 11% on average over the past year, the company said insurers are still losing an average of five cents on the dollar in collected premium.
Trust in auto insurers varies depending on which of 11 surveyed regions the consumer lives, and the study found customers in Florida have the lowest level, not surprisingly since rate increases there are more frequent.
The survey, conducted in the eight months ended in April, is in its 25th year.
Originally posted on Auto Dealer Today
More Industry
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
Find Efficiency in Fixed Ops
A new report shows how service departments can maximize their profitability through efficiency, productivity and the right tools in technicians' hands.
Read More →
Closing the Seat Gap
Mass-market brand vehicle seats are outpacing luxury versions when it comes to customer satisfaction, according JD Power research.
Read More →
Auto Industry Execs Talk Trade, Tariffs
Participants in a U.S.-Canada discussion tallied the costs and compiled a list of remedies, including preservation of the North American trade agreement that the U.S. recently declined to renew.
Read More →
Structure Leads to Optimized Auto Listings
As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.
Read More →
Texas Dealerships Rebranded After Sale
The Norm Reeves group of stores had owned the three rooftops in the greater Dallas-Fort Worth metro area that now operate under a homegrown group’s signature.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
All on One Team
Since finance-and-insurance was added to the auto dealership, most stores’ F&I teams have been separated from sales like a car’s trunk is separated from the engine. It doesn’t have to – and shouldn’t – be that way.
Read More →
Auto Dealers Have Some Phone Homework
A midyear study found that stores can do a better job of converting both inbound and outbound calls into customer appointments for increased sales.
Read More →
Hyundai Ventures Aim for Deeper AI Dive
The automaker announced partnerships with several technology industry leaders to pursue an ambitious plan for integrating AI into its manufacturing and well beyond automotive.
Read More →