How Canada’s Major Auto Insurers Rank in Terms of Customer Satisfaction

Since 1968, JD Power and Associates has surveyed millions of consumers worldwide. JD Power is an internationally renowned compiler of market data and information about quality of products and services, consumer satisfaction, and buyer behaviour. The organization conducts independent surveys that are unbiased and highly accurate. Their findings and reports are utilized by businesses across the globe to improve quality of products and services.

Following are the results of JD Power’s 2010 Canadian Auto Insurance Customer Satisfaction Survey.

The study was limited to private auto insurers in the full coverage market, due to the lack of award-eligible governmental carriers.

Grey Power

Overall Satisfaction 5
Policy Offerings 5
Pricing 5
Billing and Payment 5
Interaction 5
Claims N/A

Johnson Insurance

Overall Satisfaction 4
Policy Offerings 5
Pricing 4
Billing and Payment 4
Interaction 3
Claims 5

RBC Insurance

Overall Satisfaction 4
Policy Offerings 5
Pricing 4
Billing and Payment 5
Interaction 3
Claims 4

State Farm

Overall Satisfaction 4
Policy Offerings 4
Pricing 3
Billing and Payment 3
Interaction 5
Claims 5

Alberta Motor Association

Overall Satisfaction 3
Policy Offerings 3
Pricing 3
Billing and Payment 3
Interaction 2
Claims 3

Allstate

Overall Satisfaction 3
Policy Offerings 3
Pricing 3
Billing and Payment 3
Interaction 2
Claims 4

*For full results click here.

This survey showed that premium increases had little or no effect on overall satisfaction ratings. It appears that service is indeed paramount in many motorists’ perception of insurer quality. When it comes to loss protection from catastrophic occurrences, this is just as it should be.

Other key patterns revealed by the survey include:

– High customer satisfaction has an especially major impact on policyholder recommendation rates. Consumers who indicated that they were “delighted” with their insurance carriers made an average of five positive referrals during the twelve months prior to the study. Those who were dissatisfied, however, made an average of eight negative recommendations during the same time frame;

– Policyholders over 65 years of age had the highest satisfaction levels;

– Policyholders between 18 and 34 years of age were much more likely to act upon referrals from friends or family members than other age groups;

Scores in the 2010 report were based on a 1000-point scale and revealed higher customer satisfaction than that of previous years.

JD Powers Senior Director Lubo Li noted that premium increases can be mitigated by effective insurer communication with customers. When policyholders are provided with advance notice of planned premium hikes along with available discounts for cost reduction, it greatly improves customer retention. Mr. Li aptly observed that such insurer actions demonstrate care and concern for customers and go along way in fostering consumer trust and loyalty.