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Satisfaction gap with home, car insurance widens

by AP Associated Press - Oct 08,2008

WESTLAKE VILLAGE, Calif. -Consumers are growing more satisfied with their auto insurance, but not so with their homeowners insurance, a survey by J.D. Powers and Associates shows.

A study comparing two surveys found the gap between satisfaction with homeowners and auto insurance has nearly quadrupled in the past four years.

Consumer surveys by J.D. Powers ranked satisfaction with auto insurance at 787 on a 1,000-point scale, while homeowners insurance measured 752 on the same scale. The rankings were determined from questions examining five areas: policy offerings; price; billing and payment, interaction and claims.

Auto insurance satisfaction has steadily climbed in the past four years, based on the results of earlier studies. In 2004, consumers ranked satisfaction with auto insurance at 762 on the same 1,000-point scale, while homeowners insurance satisfaction has been basically flat since measuring 753 four years ago.

"Considering the significant price increases for homeowners insurance, the negative press the industry generated from the catastrophic storm that struck the Gulf States, and the four storms that ripped through Florida and continue to affect availability, it is surprising that satisfaction scores have not suffered more," a study examining the growing gap said.

Pricing appears to have driven the improvement in auto satisfaction, the study said.

The study also found that satisfaction levels are particularly high among policyholders who buy multiple policies, known as "bundling," from the same insurance provider. Satisfaction averages 782 when policyholders bundle home insurance and auto insurance policies, compared with an average of 689 among policyholders who do not bundle policies.

The 2008 Homeowners Insurance Study is based on responses from more than 12,900 homeowners insurance policyholders. The study was fielded in May and June 2008.

J.D. Powers is a unit of The McGraw-Hill (nyse: MHP - news - people ) companies.

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Copyright 2008 Associated Press. All rights reserved.

 

Related news
Customer Satisfaction with Homeowners Insurance Remains Flat, While Satisfaction with Auto Insurance Continues an Upward Climb by NAMIC posted on Oct 07,2008
Multiple Policies Lead to Greater Satisfaction and Loyalty among Homeowners Insurance Customers by NAMIC posted on Oct 19,2007
USAA named industry's best for homeowners insurance by San-Antonio-Biz-Journal posted on Nov 10,2006
J.D. Power and Associates Reports: Homeowners Express Great Interest in Insurance Providers Offering Coverage for Identity Theft by PRWEB.com posted on Oct 30,2006
Producing Highly Satisfied Customers Can Improve the Bottom Line for Auto Insurers Through Increased Renewal Rates by NAMIC posted on Sep 08,2008
Overall Customer Satisfaction with Home Builders Improves Significantly in 2008, Despite Daunting Economic Challenges and Surplus Inventory Levels in the Industry by NAMIC posted on Sep 12,2008
J.D. Power and Associates Ranks SunTrust Highest in Overall Customer Satisfaction in 2007 Home Equity Line of Credit/Loan Servicer Study(SM) by TradingMarkets.com posted on Oct 11,2007
Prudential Real Estate Ranked Highest for Seller Satisfaction in J.D. Power and Associates' 2008 Home Buyer/Seller Study by Business-Wire posted on Aug 28,2008
Customer Satisfaction with Property/Casualty Insurance Companies Increases by NAMIC posted on Feb 26,2008
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