The simple answer would be price since 22% of people reported an increase in their auto insurance rate, when compared to 17% in 2009. However, something that is very over-looked is the fact that 6 out of 10 insurance policy holders who experienced an increase said that they did not receive any advance warning of the change from their insurers. So along with a competitive price, shoppers want communication from their insurance companies.
How do the Insurance Companies Stack up?
JD Powers and Associates released the results of their 2010 US National Auto Insurance Study. According to the Customer Satisfaction Index, based on a 1,000 point scale:
- Amica Mutual leads the way with a score of 849 and a customer rating of “Among the Best”.
- State Farm falls in the top ten with a score of 795 and a customer rating of “Better Than Most”.
- Allstate falls below the industry average, with a score of 768 and a rating of “About Average”.
- Farmers falls in the bottom ten, with a score of 757, and a rating of “About Average”.
Different Age Groups Respond Differently to Advertising
Generation Y customers (born 1977-1994) are the highest users of online and phone applications. They also care more about having easy and convenient ways to contact representative.
Baby Boomers (born 1946-1964) have grown in use of online and phone applications, but don’t prefer them. Mailings, newsletters, and other traditional means of communication are valued among this age group.