Customer satisfaction down in U.S. auto claims experience: J.D. Power

Overall satisfaction with the auto claims experience is down, according to the J.D. Power and Associates 2013 Auto Claims Satisfaction Study — Wave 2. Overall satisfaction has declined by 11 points to 850 on a 1,000 point scale, compared top 861 points in the Wave 1 study.

The study, based on 2,878 responses from auto insurance customers who settled a claim in the previous six months, was conducted in the last two months of 2012. Wave 1 was conducted earlier in 2012. 

Related: Customer satisfaction with auto insurers increases, but generational divide is clear: study

Settlement is the most important factor in overall satisfaction among both total loss and repair claimants, according to J.D Power research.

Deductibles and vehicle rentals, in addition to other out-of-pocket expenses, have increased to an average of $499 during wave 2, as compared to $469 in wave 1.

The study also found that settlement and appraisal times are taking longer — on average 3.3 days versus 2.9 in wave 1 for appraisals, and 6.6 days versus 5.8 days for settlements. Settlement payments are taking long as well, averaging 14.9 days in wave 2, as compared to 13.9 days in wave 1. These, in addition to seasonal factors, could be contributing to the reduced satisfaction.

“There is a seasonal trend in claimant satisfaction, which declines significantly during the winter months,” Jeremy Bowler, senior director of the insurance practice at J.D Power and Associates, noted in a statement. “When consumers have an accident and need to repair their vehicle around the holidays, it’s an inconvenience, and road conditions tend to batch accidents, causing volume peaks for the repair industry.

Furthermore, for those claimants who incur personal out-of-pocket expenses, having to dip into their holiday savings to pay for repairs is frustrating,” he added. 

Claimants who used a body shop in their insurer’s preferred repair network got their vehicles back, on average, 1.3 days faster than those who use an out-of-network shop — 8.6 days vs. 9.9 days. Those who brought their car for repair at a dealership waited an average of 11.9 days versus 121 for those who went to an independent or chain shop, the study found.