Car insurance companies are improving how they process claims, according to a new study by J.D. Power. And one insurer — the regional NJM Insurance Co. — gets especially high marks from drivers.
The New Jersey-based insurer earned the top ranking in J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study. NJM Insurance serves customers in Connecticut, Delaware, Maryland, New Jersey, New York and Pennsylvania.
Overall, claims service is improving across the board in the car insurance industry, J.D. Power says. The improvements are largely a result of the pandemic, according to J.D. Power:
“One silver lining to the COVID-19 pandemic: a 22% decline in frequency of auto insurance repairable claims has given insurers some breathing room to refine their customer experience and deliver higher touch and higher quality service during the claims process.”
According to the J.D. Power study, focusing on quality service has resulted in:
- Shorter claim processing cycle times — now at 10.3 days for claimants with reparable vehicles, compared to 12.6 days before the pandemic
- Better service delivery
- A record high level of customer satisfaction
In fact, on a 1,000-point scale, overall customer satisfaction with the car insurance claims process sits at an all-time high of 872. That is 4 points higher than in 2019. It also marks the third straight year that satisfaction has increased.
The 10 car insurance companies that earn the highest marks for how they process claims — and their score for claims — are:
- NJM Insurance Co.: 909 out of 1,000 points
- Amica Mutual: 907
- Auto-Owners Insurance: 890
- The Hartford: 888
- MetLife: 886
- State Farm: 881
- Erie Insurance: 880
- Allstate: 876
- Nationwide: 876
- Farmers: 872
The improving level of customer service may in turn boost the bottom line for many insurers. J.D. Power found that the number of claimants who say they “definitely will” renew with their existing insurer now stands at 76%. Prior to the pandemic, that number was 72%.
Policyholders say they are especially pleased with several aspects of insurance company performance, including always having representatives immediately available, and getting work completed when it was promised.
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