J.D. Power: American Family, Auto-Owners Insurance lead auto insurers in customer satisfaction

American Family and Auto-Owners Insurance ranked highest for customer satisfaction among auto insurance companies in a new study by J.D. Power and Associates.

On a 1,000-point scale on J.D. Powers’ Customer Satisfaction Index, American Family scored 864 and Auto-Owners Insurance scored 860. They were the only auto insurance companies to earn J.D. Powers’ top Power Circle rating of 5. The average score for auto insurers was 839, with a Power Circle rating of 3.

Next on the Consumer Satisfaction Index was Erie Insurance, with a score of 857 and a Power Circle rating of 4.

Erie Insurance was followed by:

• Amica Mutual — 854 score, 4 rating.
• Liberty Mutual — 851 score, 4 rating.
• The Hartford — 850 score, 4 rating.
• MetLife — 850 score, 4 rating.
• State Farm — 846 score, 4 rating.
• GEICO — 843 score, 3 rating.
• 21st Century — 841 score, 3 rating.
• Farmers — 841 score, 3 rating.
• Travelers — 841 score, 3 rating.
• Safeco — 833 score, 3 rating.
• Nationwide — 832 score, 3 rating.
• Esurance — 830 score, 3 rating.
• Automobile Club of Southern California — 829 score, 3 rating.
• Progressive — 828 score, 3 rating.
• Allstate — 826 score, 2 rating.
• Automobile Club Group — 822 score, 2 rating.
• Mercury — 806 score, 2 rating.

Technically, USAA ranked highest on the Customer Satisfaction Index, with a score of 906 and a Power Circle rating of 5. However, USAA wasn’t included in the official rankings because its policies are sold only to U.S. military personnel and their families.

In the study, sales channels (agents, websites and so forth), policy offerings and price were the factors used to measure customer satisfaction.

Making the switch

J.D. Power and Associates’ 2011 U.S. Insurance Shopping Study also found that among auto insurance customers who indicated they’d shopped for insurance, 40 percent had switched to a new insurer — up from 33 percent in 2010.

Jeremy Bowler, senior director of the global insurance practice at J.D. Power and Associates, notes that the auto insurance industry spent $5 billion on marketing and advertising in 2010, which helped push up shopping rates.

“A majority of the customers shopping for a new insurer are doing so either because of a life event that has changed their insurance needs, or because they are looking for a better deal,” Bowler says in a news release. “However, no group is more interested in switching than customers who are displeased with the service provided by their incumbent insurance company.”

–InsuranceQuotes.com staff