CMS Authors: Mehdi Daoudi, Rishi Bhargava, Harry Trott, Xenia von Wedel, Carmen Gonzalez

News Feed Item

J.D. Power Reports: Auto Insurance Claims Satisfaction Remains Stable Overall, Despite Decline in Total Loss Satisfaction

Appraisal, Settlement Satisfaction Dip with Spike in Total Loss Claims from Storm Events in the Mid-Atlantic Region

WESTLAKE VILLAGE, Calif., July 18, 2013 /PRNewswire/ -- Satisfaction with the auto claims experience held steady in the second quarter of 2013, compared with the first quarter.  Small improvements in satisfaction with repairable claims were offset by significant declines in satisfaction among total loss-claimants, according to the J.D. Power 2013 Auto Claims Satisfaction StudySM—Wave 3 released today.

(Logo: http://photos.prnewswire.com/prnh/20130605/LA26502LOGO)

The declines may be due to the impact of more claims filed in the Mid-Atlantic region after damages from Superstorm Sandy at the end of October 2012 and a powerful nor'easter storm in February 2013.

Overall claimant satisfaction has edged up by 2 points to 852 on a 1,000-point scale in Wave 3, compared with 850 in Wave 2 of the study[January – March 2013]. On a positive note, out-of-pocket expenses for repairable claims, such as the deductible and vehicle rental, have dropped to an average of $461 vs. $499 in Wave 2. However, out-of pocket expenses for total loss have increased slightly to an average of $600 in Wave 3 from $592 in Wave 2.

"While overall satisfaction is up 2 points overall, and satisfaction in four of the six factors[1] is also up from Wave 2, satisfaction with the appraisal process among total loss claimants declines by 25 points," said Jeremy Bowler, senior director of the insurance practice at J.D. Power.

"For total loss vehicles, satisfaction with the claims process has declined by a significant 57 points in the Mid-Atlantic region, which was devastated by major storm events. In that region, satisfaction with the appraisal process declines by 71 points, and satisfaction with the settlement process declines by 76 points," said Bowler.

The Wave 3 study finds that claimants wait an average of 2.8 days for an insurance appraisal of repairable vehicles, which is nearly the same as in Wave 2 (3.1 days). However, the appraisal process for total loss vehicles takes longer than in Wave 2—averaging 4.8 days,  up from 4.2 days.

Further, it takes an average of 5.3 days in Wave 3 to provide claims settlement terms for vehicles that can be repaired, which is slightly shorter than 5.8 days in Wave 2. However, the time it takes to provide settlement terms for total loss claims has risen in Wave 3 to an average of 12.3 days from 10.5 days in Wave 2.

In addition, receiving settlement payments takes considerably longer for total loss claims in Wave 3 than in Wave 2. In Wave 3, receiving a settlement averages 20.9 days, which is up by 4.3 days from 16.6 days in Wave 2. The time it takes to receive a settlement payment for repairable claims remains virtually unchanged—14.5 days in Wave 3, compared with 14.1 days in Wave 2.

"Our findings highlight how important it is for insurers to efficiently manage their customers through the appraisal process. There are more than 70 percent of auto insurance claimants who had some form of interaction with their insurer related to an appraisal. Among these claimants, overall satisfaction is 30 points higher than among those who did not interact with their insurer or agent," said Bowler. 

Making the Auto Insurance Claims Process Smoother and Easier

J.D. Power offers the following tips to auto insurance customers when filing a claim:

  • Call the police for any auto accident that results in more than minor damage to a vehicle (more than $500 is a suggested figure).
  • Call 911 if someone involved in the incident has been injured.
  • Take down the names and addresses of individuals involved; the accident location; the make, model and plate number of the vehicle(s); names and contact information of any witnesses; and notes of any injuries.  
  • Always get a copy of a police report when involved in a multiple-vehicle accident.
  • Ask the police to file an accident report or at least an incident report, so there's a record to show your insurance company.
  • Contact your insurer or agent as soon as possible after the incident, even if the other party is at fault. Your insurer will be better able to protect your interests.  
  • If possible, contact your insurer or agent from the location where the damage occurred.
  • Keep records of all calls regarding the incident.
  • Take photos of damage to your vehicle, even with a cell phone.
  • If you have questions about your adjustor's appraisal, contact your insurer or agent directly.

The 2013 U.S. Auto Claims Satisfaction Study—Wave 3 is based on 3,009 responses from auto insurance customers who settled a claim within the past 6 months. The study excludes claimants whose vehicle only incurred glass/windshield damage or was stolen, or who only filed roadside assistance claims. Wave 3 of the study was fielded between April and mid-June 2013.

About J.D. Power
J.D. Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., J.D. Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial
McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, McGraw-Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at http://www.mhfi.com.

J.D. Power Media Relations Contacts
John Tews; J.D. Power and Associates; MI, USA; Tel: +1 (248) 580-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; [email protected]

No advertising or other promotional use may be made of the information in this release without the express prior written consent of J.D. Power. www.jdpower.com

Follow us on Twitter @jdpower

[1] The study measures customer satisfaction with the claims experience for auto physical damage loss. Depending on the complexity of a claim, a claimant may experience some or all of the following six factors measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement. Settlement is the most important factor in overall satisfaction among both total loss and repair claimants.


SOURCE J.D. Power and Associates

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...