Customer satisfaction increases even as rates do, shows auto insurance studies

June 20--Auto insurance customers are more satisfied with their carrier than ever in spite of increasing premiums, according to recently released studies.

Rates are increasing, reads a report released earlier this year from Austin-based insurance search engine The Zebra. The national average annual premium was $1,427 in February -- a 20 percent increase over 2011. Many factors affect insurance rates, but increases in distracted driving violations and natural disasters have recently caused some of the biggest impacts.

The average annual premium in Texas was $1,810, the sixth most expensive state for car insurance, reports The Zebra.

But prices aren't everything, found J.D. Power.

"Cost is not the sole indicator of customer satisfaction in the auto insurance industry," said Robert Lajdziak, insurance practice business consultant at J.D. Power, in the report. "Low prices may attract new customers, but it's service that keeps them. The auto insurers that increase customer satisfaction across all facets of the customer experience make price just one part of the overall relationship."

The J.D. Power 2018 U.S. Auto Insurance Study found providers mixing digital and live interactions are seeing increased customer satisfaction.

The report showed customers like to be able to complete simple tasks online, like making payments, verifying receipts and ordering proof of insurance cards. Having easily-accessible information about policy specifics and rate increases also help a carrier's favorability.

For more complicated interactions, customers still prefer to talk with a representative.

"Customer satisfaction is at its highest when customers take care of transactions themselves and save the high-value interactions for live channels," Lajdziak said. "However, the increasing demand and use of digital self-service options is putting pressure on agents to evolve their value proposition to offer more products and services to help customers with complex needs and risks."

The survey, which almost 45,000 respondents completed, showed Texas Farm Bureau had the highest overall customer satisfaction index ranking in the state, earning 861 of 1,000 points and ranking "among the best." Allstate ranked "better than most."

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