JD Power and Associates Reports: Erie Insurance ranks highest in New Satisfaction with the buyer of auto insurance shopping experience for a second consecutive year
Wednesday, Jun 24,2009, 10:10:46 AM Click:
The number of customers shopping for new insurance providers Declines
WESTLAKE VILLAGE, California, June 23 / PRNewswire / - Erie Insurance ranks highest among auto insurance companies to meet new buyers to the buying experience for a second consecutive year, according to the JD Power and Associates 2009 Insurance Shopping Study (SM) released today.
(Logo: www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
With a score of 893 on a scale of 1,000-, Erie Insurance ranks highest and gives good results in all three factors of satisfaction - distribution channel, price and its supply policy. American Family ranks second with an overall score of 891, followed by The Hartford (889) and Geico (886).
"For customers are particularly satisfied with their insurer during the shopping experience, it is important for them to think about how they prefer to be served - by a local agent, a centralized call center, a Web site or a combination of these three channels, "said Jeremy Bowler, director of insurance practice at JD Power and Associates. "According to the channel by the client, an insurance company in May be a better choice than others depending on their strength in this channel."
For example, among the four highest-ranking insurance companies in the study, Erie Insurance and American Family sell mainly through the local insurance agents. The Hartford has a particular strength in its call center, while Geico customers indicate that they are particularly satisfied with the Geico website.
The study finds that customers are less insurance provider to another shopping - 28 per cent, compared to 36 percent in 2008. Across the industry, 90 percent of auto insurance customers are retained by their current provider.
"The decline in the number of customers shopping and switching insurance in May in part because of the current economic situation, the largest number of customers using a Hunker-down mentality," said Bowler. "Most customers prefer to hold tight to their current provider, they already know rather than risk trying a new supplier, especially in the middle of the negative coverage surrounding a number of insurance providers recently. "
However, the study also shows that the price is the most frequent reason cited for buying a new car insurance provider. Among customers who mention the price as a mall trip, 66 percent say they just wanted to see if they were the best price, while 25 percent cite a real increase in price and 5 percent say they shopped because they had received a unsolicited offer from another insurer. More than a third of customers who shop because of price ultimately switch insurers.
"Shoppers do not always go with the insurer offering the lowest prices - 10 percent of buyers say they have not purchased a brand that offers the lowest price among the prices they received," Bowler said. "While the price in May capture the attention of potential customers insurance, prices will not be enough to retain customers over the long term without a high level of service."
2009 Insurance Shopping Study examines purchasing behavior and overall satisfaction of customers who buy a new insurance company automobile. The study is based on responses from more than 13,500 consumers who requested a quote for auto insurance competition from at least one insurer in the past 12 months and consists of 63,517 unique carrier evaluations. The study was conducted from February to March 2009.
Customer Satisfaction Index Rankings
(Based on a scale of 1,000-)
JDPower.com Power Circle Ratings
Provider__ Index Score__ For Consumers
__ __ ------------- -------- -----------
Erie Insurance__ 893__ 5
American Family__ 891__ 5
The Hartford__ 889__ 5
GEICO__ 886__ 5
Auto-Owners__ 882__ 4
ACG__ 881__ 4
Allstate__ 875__ 4
Amica Mutual__ 875__ 4
State Farm__ 874__ 4
Nationwide__ 872__ 3
CSAA__ 870__ 3
Liberty Mutual__ 870__ 3
Industry Average__ 865__ 3
Progressive__ 859__ 3
esurance__ 858__ 3
MetLife__ 858__ 3
ACSC__ 853__ 3
Travelers__ 844__ 2
Farmers__ 843__ 2
Mercury__ 833__ 2
21st Century__ 831__ 2
Safeco__ 825__ 2
AIG__ 813__ 2
* USAA__ 918__ 5
* USAA is an insurance reserved for U.S. military
and their families and are therefore not included in the rankings.
Included in the study but not ranked due to small sample size are
COUNTRY, Encompass and GMAC.
About J. D. Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The quality of the company and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone rating, and more, please visit JDPower.com. JD Power and Associates is a division of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in financial services, education and business information through markets leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and JD Power and Associates. The Company has over 280 offices in 40 countries. Sales in 2008 were $ 6.4 billion. Additional information is available at www.mcgraw-hill.com.
Media Relations:
Jeff Perlman; Brandware Public Relations, Agoura Hills, California, (310) 589-7749; jperlman@brandwaregroup.com
John Tews, JD Power and Associates, Troy, Michigan, (248) 312 - 4119; john.tews @ jdpa.com
No advertising or promotion can be used in the information in this release without the prior written consent of JD Power and Associates. www.jdpower.com / corporate
SOURCE J. D. Power and Associates
Originally published by JD Power and Associates.
(c) 2009 PRNewswire. Provided by ProQuest LLC. All rights reserved.
WESTLAKE VILLAGE, California, June 23 / PRNewswire / - Erie Insurance ranks highest among auto insurance companies to meet new buyers to the buying experience for a second consecutive year, according to the JD Power and Associates 2009 Insurance Shopping Study (SM) released today.
(Logo: www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
With a score of 893 on a scale of 1,000-, Erie Insurance ranks highest and gives good results in all three factors of satisfaction - distribution channel, price and its supply policy. American Family ranks second with an overall score of 891, followed by The Hartford (889) and Geico (886).
"For customers are particularly satisfied with their insurer during the shopping experience, it is important for them to think about how they prefer to be served - by a local agent, a centralized call center, a Web site or a combination of these three channels, "said Jeremy Bowler, director of insurance practice at JD Power and Associates. "According to the channel by the client, an insurance company in May be a better choice than others depending on their strength in this channel."
For example, among the four highest-ranking insurance companies in the study, Erie Insurance and American Family sell mainly through the local insurance agents. The Hartford has a particular strength in its call center, while Geico customers indicate that they are particularly satisfied with the Geico website.
The study finds that customers are less insurance provider to another shopping - 28 per cent, compared to 36 percent in 2008. Across the industry, 90 percent of auto insurance customers are retained by their current provider.
"The decline in the number of customers shopping and switching insurance in May in part because of the current economic situation, the largest number of customers using a Hunker-down mentality," said Bowler. "Most customers prefer to hold tight to their current provider, they already know rather than risk trying a new supplier, especially in the middle of the negative coverage surrounding a number of insurance providers recently. "
However, the study also shows that the price is the most frequent reason cited for buying a new car insurance provider. Among customers who mention the price as a mall trip, 66 percent say they just wanted to see if they were the best price, while 25 percent cite a real increase in price and 5 percent say they shopped because they had received a unsolicited offer from another insurer. More than a third of customers who shop because of price ultimately switch insurers.
"Shoppers do not always go with the insurer offering the lowest prices - 10 percent of buyers say they have not purchased a brand that offers the lowest price among the prices they received," Bowler said. "While the price in May capture the attention of potential customers insurance, prices will not be enough to retain customers over the long term without a high level of service."
2009 Insurance Shopping Study examines purchasing behavior and overall satisfaction of customers who buy a new insurance company automobile. The study is based on responses from more than 13,500 consumers who requested a quote for auto insurance competition from at least one insurer in the past 12 months and consists of 63,517 unique carrier evaluations. The study was conducted from February to March 2009.
Customer Satisfaction Index Rankings
(Based on a scale of 1,000-)
JDPower.com Power Circle Ratings
Provider__ Index Score__ For Consumers
__ __ ------------- -------- -----------
Erie Insurance__ 893__ 5
American Family__ 891__ 5
The Hartford__ 889__ 5
GEICO__ 886__ 5
Auto-Owners__ 882__ 4
ACG__ 881__ 4
Allstate__ 875__ 4
Amica Mutual__ 875__ 4
State Farm__ 874__ 4
Nationwide__ 872__ 3
CSAA__ 870__ 3
Liberty Mutual__ 870__ 3
Industry Average__ 865__ 3
Progressive__ 859__ 3
esurance__ 858__ 3
MetLife__ 858__ 3
ACSC__ 853__ 3
Travelers__ 844__ 2
Farmers__ 843__ 2
Mercury__ 833__ 2
21st Century__ 831__ 2
Safeco__ 825__ 2
AIG__ 813__ 2
* USAA__ 918__ 5
* USAA is an insurance reserved for U.S. military
and their families and are therefore not included in the rankings.
Included in the study but not ranked due to small sample size are
COUNTRY, Encompass and GMAC.
About J. D. Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The quality of the company and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone rating, and more, please visit JDPower.com. JD Power and Associates is a division of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in financial services, education and business information through markets leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and JD Power and Associates. The Company has over 280 offices in 40 countries. Sales in 2008 were $ 6.4 billion. Additional information is available at www.mcgraw-hill.com.
Media Relations:
Jeff Perlman; Brandware Public Relations, Agoura Hills, California, (310) 589-7749; jperlman@brandwaregroup.com
John Tews, JD Power and Associates, Troy, Michigan, (248) 312 - 4119; john.tews @ jdpa.com
No advertising or promotion can be used in the information in this release without the prior written consent of JD Power and Associates. www.jdpower.com / corporate
SOURCE J. D. Power and Associates
Originally published by JD Power and Associates.
(c) 2009 PRNewswire. Provided by ProQuest LLC. All rights reserved.
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