Auto insurance policyholders are significantly less happy about the price of auto insurance than they were a year ago, according to J.D. Power’s 2022 U.S. Auto Insurance Study.
J.D. Power says a record number of serious accidents and soaring prices for used cars — plus higher costs to repair those vehicles — has “created an unenviable scenario for auto insurers: raise rates or go out of business. ”
As insurers have raised rates to cope, customers have registered their displeasure. Customer satisfaction with the price of policies now sits at 769 out of 1,000, a decline of 5 points in one year. J.D. Power characterizes the drop as “significant.”
Overall, though, customer satisfaction with U.S. auto insurance companies averaged 834 on a 1,000-point scale — down just 1 point from a year prior, according to the study, which is now in its 23rd year.
Despite the dissatisfaction with pricing, there was some good news for insurers in this year’s survey, says Robert Lajdziak, director of insurance intelligence at J.D. Power.
In a press release, he comments:
“J.D. Power finds two bright spots in the data for insurers. First, those insurers that are transparent and notify customers in advance of price increases can blunt the negative effects of a price increase. Second, usage-based insurance is growing quickly, with an all-time high number of customers adopting these programs and due to their experience using them, overall customer satisfaction levels have significantly risen.”
The best auto insurer in every region
J.D. Power’s 2022 study is based on a poll of nearly 37,000 car insurance customers. It evaluates five facets of customer satisfaction:
- Billing process and policy information
- Policy offerings
The following insurers ranked highest in the 11 regions included in the study:
- California: Wawanesa (which earned an overall customer satisfaction score of 879 out of 1,000)
- Central (Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota): Shelter (866)
- Florida: The Hartford (860)
- Mid-Atlantic (Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia): Erie Insurance (867)
- New England (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont): Amica Mutual (862)
- New York: New York Central Mutual (834)
- North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin): Erie Insurance (876)
- Northwest (Idaho, Montana, Oregon, Washington and Wyoming): The Hartford (842)
- Southeast (Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee): Farm Bureau Insurance-Tennessee (876)
- Southwest (Arizona, Colorado, Nevada, New Mexico and Utah): State Farm (848)
- Texas: Texas Farm Bureau (873)
Some of these insurers rank highest in their regions year after year. Amica Mutual has held the top post in New England for 10 years running while Farm Bureau Insurance-Tennessee and Texas Farm Bureau have each held the top posts in their regions for 11 years.
Finding the right auto insurer for you
If you are unhappy with your car insurance company or rate, you have a great reason to shop around. Even if you are satisfied but it’s been a few years since you compared rates, you stand to save money by doing so.
These days, you have two options for shopping around for car insurance: the old-school route of calling multiple insurers or filling out forms on websites for quotes or the new-school route of letting a third-party service like The Zebra do the legwork for you.
If you like the idea of someone else doing the comparison shopping for you so that all you have to do is select the quote you want, you can learn more about The Zebra in “Find Cheaper Car Insurance in Just Minutes.”