study reveals that many drivers are choosing to switch from their current insurance company in favor of something cheaper.
What did J.D. Power's study reveal?
J.D. Power found that consumer satisfaction with auto insurance companies stayed the same as last year following four years of improvement. Even though insurance companies gave back $18 billion in premiums to consumers last year, there was no change in consumer satisfaction.
According to Robert Lajdziak, senior consultant for insurance intelligence at J.D. Power, "The refunds provided to customers during the pandemic were significant, representing nearly 7% of total industry premiums, but only half of customers were even aware of them."
Lajdziak added that, "Worse, when customers needed to communicate with their insurers, either via phone, website or chat, many came away feeling less satisfied with the result than in the past." One of the biggest problems that drove consumers away was poor communication. J.D. Power found significant declines in satisfaction with company interactions.
According to J.D. Power, 45% of customers said they would switch companies for savings of $200 or less. Consumers are likely to switch if they suspect or see a
Consumers who were aware of a company’s COVID-19 relief efforts were more likely to renew their policy. However, only 52% of consumers knew about relief efforts. Insurance companies were providing help to consumers, but they weren’t able to communicate this effectively.
If you’re planning on switching, you’ll still want to be careful and make sure you have the coverage you need with the lower cost. If you’ve had great customer service experiences with your insurance company, you might want to see if they offer any discounts before you switch.
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