October 15, 2009

Studies Show Most Americans Pleased With Auto Insurance Companies

According to a new study by the Insurance Research Council, customer satisfaction with auto insurance companies has risen over the past year. Out of 91 percent of responses received in reference to a survey sent out by the group, 60 percent said that they were "satisfied" with their insurance company. The other 30 percent said that they were "fairly satisfied," indicating that a higher number of consumers are comfortable with their auto insurance company than ever before.

The high level of customer satisfaction with auto insurance companies is probably a direct result of the slumping economy. As consumers look for places to save money, they tend to raise their insurance deductibles or cancel coverage altogether. This causes a lack of demand for insurance as a service. In order to survive, auto insurance companies must keep demand levels high, so they cut auto insurance premium costs and offer more coverage at the same price for drivers. Experts note that while premiums are actually slightly higher than before the recession on average, they're falling quickly and steadily. Customer service is also improved, as the auto insurance companies want to keep consumers from switching insurance policies to competing companies. This leads to an overall improvement in satisfaction, which is reflected in the survey. The IRC's report also pointed out that there seems to be no correlation between customer satisfaction and the level of government intervention in a state's insurance laws. Regardless of how highly involved a state was in the insurance industry, customer satisfaction rates were approximately the same.

Auto insurance experts warn that customer satisfaction levels could potentially drop once the recession ends. It's possible auto insurance companies will rescind some of the offerings that they make during harsh economic times. However, as long as the recession persists, auto insurance customer satisfaction levels are likely to continue to improve while premiums continue to drop. This makes the current insurance market very favorable for consumers, whether a driver is buying new auto insurance or updating existing coverage.

Drivers should re-examine their auto insurance policies every few months, especially during a depression, to ensure that they're paying a low enough premium. Using price comparison websites can be very helpful, as can contacting an auto insurance agent to discuss how to lower a premium feasibly. Drivers who want more insurance coverage can also profit from a recession without paying higher rates, and of course all consumers benefit from better customer service.

The recession has certainly hit some industries hard, but in the case of auto insurance, it's created a buyer's market that favors consumers looking for a good rate and ample auto insurance coverage.