Report: Happiness with Auto Insurance Pulled Down by Price

New car coverage consumers are less happy with their purchases because of rising prices that are also increasingly pushing consumers to get auto insurance quotes, according to a Thursday report from J.D. Power and Associates.

The first “wave” of the 2014 U.S. Insurance Shopping Study shows a 13-point drop in price satisfaction, to 808 in the latest report from 821 in 2013 on a 1,000-point scale, which J.D. Power called a sign that “the purchase experience is trending downward.”

According to J.D. Power’s report, price satisfaction is the “leading driver” of overall satisfaction for new buyers.

J.D. Power also noted its findings showing the growing role that websites are playing in the industry. According to the firm, more than 20 percent of new customers buy their coverage online.

“Companies that lack a viable quote website are not well-positioned to acquire or sell to 1 in 5 customers,” the firm said in a statement.

The firm’s latest findings on the strength of online commerce for auto coverage bolster its previous studies on how consumers shop for policies. In April, J.D. Power said that high-quality sites often grabbed more business because they offered an easy and seamless quote-obtaining process.

“As rate increases continue to drive customers to shop around for the best price, insurers need to provide a seamless shopping experience, including competitive websites with quote compatibilities and a satisfying on-boarding experience to acquire new customers,” Jeremy Bowler, senior director of the global insurance practice at J.D. Power, said in a statement. “Communicating new offerings and allowing customers to tailor their policies helps demonstrate the value of the policy and improve customer satisfaction.”

For the 2014 study, J.D. Power surveyed more than 5,550 consumers of auto coverage between July and August. The latest entry is J.D. Power’s first in which the firm will conduct the U.S. Insurance Shopping Study quarterly.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

No comments yet.

Comment on this article