Almost 20% of consumers change insurers after most recent collision

Nearly one out of five customers considers switching insurance companies after experiencing the collision claim process, according to a new U.S. study.
J.D. Power and Associates’ 2006 Collision Repair Satisfaction Study found that 7% of customers chose not to file a claim with their insurer after their most recent collision.
And while more than 30% of auto insurance customers who chose not to file a claim after a collision feared their premium would increase, 62% of respondents who did file a claim more than six months prior to being surveyed indicate their premium has not been re-adjusted by their insurer, says a J.D. Power and Associates release.
Jeremy Bowler, senior director of the firm’s insurance practice, believes a collision marks the first time a client becomes truly familiar with their policy.
“Misconceptions about what is covered by the auto policy, or what to expect during the claim and repair processes can lead to significantly lower customer satisfaction,” Bowler said in a statement.
The study also found that claimants whose vehicles are totaled rather than repaired are significantly more satisfied if their insurer gives them a clear explanation of why the vehicle is totaled and how they calculated the settlement amount.
“Nearly 85% of total loss claimants receive an explanation of why their vehicle is being totaled and how their actual cash value settlement is derived,” a press release noted.