Best & Worst Companies for Auto Insurance Claims Satisfaction in 2013

JD Power has released its 2013 US Auto Claims Satisfaction Study. Although these annual JD Power customer surveys are great resources for consumers to use, as an objective measure of customer satisfaction, for each of the major auto insurance companies in the USA, the power circle ratings, used by JD Power to rate each insurance company, can mislead people about how well or how poorly each company performed in the survey. This review & analysis of the numerical scores for the auto insurance companies surveyed in the JD Power 2013 US Auto Claims Satisfaction Study will let you know the best & worst companies, and which highly rated companies are really performing close to average, and about the same as lower rated companies.

The Best & Worst US Auto Insurance Companies for Claims Satisfaction, based on the 2013 JD Power customer study.

I think one of the most important JD Power insurance studies is the JD Power annual survey regarding auto insurance claims satisfaction. The 2013 JD Power US Auto Claims Satisfaction Study is based on responses from more than 11,500 auto insurance customers throughout the USA, settling an auto insurance physical damage claim (damage to the car insured by the customer) in the last 6 months. This JD Power auto claims study excludes claimants whose vehicle incurred only glass or windshield damage, or was stolen, or who only filed roadside assistance claims. Survey data was collected between December 2012 and September 2013. Although auto physical damage claims are not the only type of auto insurance claims, they are probably the most common type of claims, and most auto owners will experience an auto physical damage claim at some point in time.

An auto insurance company may have low rates for you, great coverage options, and a friendly & helpful agent always there to answer your questions and assist you. But, what if you have a claim, and the company’s claims representative is slow to respond, does not investigate or pay your claim in a timely fashion, or does not give you a fair settlement? You may change your mind about the quality of your insurance company. A lot of people are happy with their insurance company until they have a large claim.

Every company has some people unhappy with how a claim was handled. You can have an excellent or poor experience with any insurance company. But some companies do a better job of keeping more of their customers satisfied when a claim occurs. Using the annual JD Power auto claims satisfaction study, to review the quality of the leading insurance companies each year, keeps you informed, and can help you reduce the chance you’ll have a disappointing claims experience, by choosing to insure with one of the higher rated companies.

However, you need to look beyond the power circle rating system, to know which companies really have superior or inferior auto claims satisfaction. Some companies, rated above average with four or five power circles, actually scored much closer to average than some other top-rated companies.

The power circle rating is determined by a company’s point score on a 1,000 point scale.

For example, American Family auto insurance scored 867 out of 1,000 points in the study, and rated 4 power circles (better than most) for Overall Auto Claims Satisfaction. Hanover scored 862 out of 1,000 points, which is only 5 points less on the 1,000 point scale (a .5% difference), but rated 3 power circles (about average) for Overall Auto Claims Satisfaction. American Family is rated better than most, but it scored only 12 points more (1.2% higher) than the study average score. American Family’s rating of 4 power circles implies much better auto claims service than Hanover, but its score is only half a percent better than Hanover. I think the expectation of superior service for auto claims from America Family is a false expectation.

This blog post analyzes the study scores, from the highest scoring company to the lowest scoring company, and looks at each company’s ratings for factors considered, like First Notice of Loss, Service Interaction, Appraisal, Repair Process, Rental Car Experience, & Settlement.

The information I provide will help you avoid thinking it might be worth paying more for a company rated better than most, or among the best, with 4 or 5 power circles, when its actual claims satisfaction score is not far from average. Or, let you know if a top rated company’s score is very close to another company with a lower power circle rating, which you may want to choose over the higher rated company, because it has a much better price for you. Also, my analysis will help you decide if you should consider changing auto insurance companies, if your auto insurance company has an average or lower rating in this study.

Not all the companies on this list sell car insurance in every state. Not everyone will qualify for every company, based on driving record of the drivers in your household, or other factors. If you have trouble qualifying for auto insurance, I mark companies more likely to insure most drivers with an asterisk (*).

JD Power 2013 US Auto Insurance Claims Satisfaction Study: 25 Major Companies ranked from Best to Worst for Overall Auto Claims Satisfaction

The Best!

The first three companies received the highest numerical scores in the study, and received the highest rating of 5 power circles for overall auto claims satisfaction.

1,000 points is a perfect score.

1. USAA auto insurance — 914 points. USAA scored 914 out of 1,000 possible points, almost 2% more than the second highest scoring company, and almost a full 6% above the study average score. Unfortunately, USAA has restricted eligibility to the US military, their spouses & children, and honorably discharged veterans. But if you qualify, you should definitely consider this company.

2. New Jersey Manufacturers auto insurance — 895 points. New Jersey Manufacturers (NJM), scored 895 points out of 1,000 possible points. This is 19 points (1.9%) below USAA, but still 40 points (4.0%) above the industry average. If you are lucky enough to have a choice between NJM & USAA, I don’t think the 19 point score difference is significant to assure higher auto claims satisfaction, if NJM has other advantages, such as price or coverage options. Like USAA, New Jersey Manufacturers has restricted eligibility, and is only available to NJ & PA residents whose employer is a member of the New Jersey Business & Industry Association members, or State of New Jersey employees.

Both USAA & NJ Manufacturers were rated at 5 power circles (among the best) for each category of the claim process considered: First Notice of Loss, Service Interaction, Appraisal, Repair Process, Rental Car Experience, & Settlement

3. Auto Club of Southern California auto insurance — 889 points. Auto Club scored 25 points (2.5%) below USAA, but still 34 points (3.4%) above the study average. Auto Club of SC customers surveyed in this study rated the company slightly lower, at 4 power circles (better than most) in the categories of the Repair Process & Rental Car Experience, and only about average (3 power circles) for the Appraisal process. If you have the option between USAA & Auto Club of SC, USAA may be the better choice for you, due to its higher score & 5 power circle rating in all the auto claims categories, in spite of both companies being rated at 5 power circles for overall auto claims satisfaction. Since Auto Club of SC is available to the general public, unlike NJM & USAA, it is the 2013 JD Power Auto Claims Satisfaction Award Winner of the study.

Above average — but less than two percent above the study average

All but the last of the companies in this group are rated 4 power circles (better than most) for overall claims satisfaction, but I would not consider them better than most, since none of them scored 2% or more above the study average. To illustrate why I consider this to be the case, say one student scores 84% on a test, and another student scores 86% on a test, would you consider the student scoring 86% a much better student? I don’t think so. I like to see companies score above the average in JD Power insurance studies, but I would not pay a lot more to insure with them, expecting to receive better than most auto insurance claims service. The first six of these companies (4 through 9) scored within 4 points of each other, therefore having essentially the same level of overall auto insurance claims satisfaction.

4. Auto-Owners auto insurance — 874 points. 40 points on the 1,000 point scale (4.0%) below the highest scoring company, USAA, and 15 points (1.5%) below Auto Club of SC, Auto-Owners received a 4 power circle rating for Overall Auto Claims Satisfaction, instead of the 5 power circle rating received by the top three companies. However, like the two top companies, Auto-Owners received a 5 power circle rating for the category of the Repair Process, and the most important category of Settlement. However, Auto-Owners received the lowest rating of two power circles, in the categories of Appraisal & Rental Car Experience. Auto-Owners scored 19 points (1.9%) above the study average.

5. The Hartford auto insurance — 873 points. The Hartford scored only 1 point below Auto-Owners, and scored 18 points (1.8%) above the study average. The Hartford received the highest rating of 5 power circles in the category of the Repair Process, but only about average (3 power circles) for the category of Service Interaction, and received the lowest rating of two power circles for the category of Rental Car Experience.

6. Erie auto insurance — 872 points. Erie scored only 1 point below The Hartford, and scored 17 points (1.7%) above the study average. Although rated 4 power circles for Overall Claims Satisfaction, Erie received the highest rating of 5 power circles in the categories of Service Interaction and the Rental Car Experience. Since Erie received no rating lower than 4 power circles (better than most) in any category, I’d prefer Erie over The Hartford, based on these JD Power study results, though other factors should be considered before choosing an insurance company, such as coverage, price, and the agents representing the company.

7. Amica Mutual auto insurance — 871 points. Amica scored only 1 point below Erie, and scored 16 points (1.6%) above the study average. Although scoring about the same as Auto-Owners, Hartford, and Erie, and rated 4 power circles for Overall Auto Claims Satisfaction, Amica received the lowest rating of two power circles for the categories of the Repair Process and Rental Car Experience.

8. Travelers auto insurance — 871 points. Travelers scored the same as Amica, and also scored 16 points (1.6%) above the study average. Travelers received the highest rating of 5 power circles in the category of Appraisal, but only about average (3 power circles) for the category of Rental Car Experience. I’d prefer Travelers over Amica, if based only on these study results, since Travelers received no rating below about average (3 power circles) in any category.

9. State Farm auto insurance — 870 points. State Farm scored only 1 point below Amica & Travelers, and scored 15 points (1.5%) above the study average. State Farm received the highest rating of 5 power circles in the categories of Service Interaction and Rental Car Experience, but only about average (3 power circles) for the categories of First Notice of Loss & Appraisal. Like Travelers, I’d prefer State Farm over Amica, if based only on these study results, since State Farm received no rating below about average (3 power circles) in any category.

*10. American Family auto insurance — 867 points. American Family scored three points (.3%) below State Farm, and 7 points (.7%) below Auto-Owners, but still scored 12 points (1.2%) above the study average. Although rated 4 power circles for Overall Claims Satisfaction, American Family rated about average (3 power circles) in the categories of Appraisal and the Repair Process, and received the lowest rating of two power circles in the category of Rental Car Experience.

*11. Nationwide auto insurance — 867 points. Nationwide scored the same as American Family, also scoring three points (.3%) below State Farm, and 7 points (.7%) below Auto-Owners, but still scoring 12 points (1.2%) above the study average. Although rated 4 power circles for Overall Claims Satisfaction, Nationwide rated about average (3 power circles) in the categories of Appraisal and the Rental Car Experience. I’d prefer Nationwide over American Family, if based only on these study results, since Nationwide received no rating below about average (3 power circles) in any category.

12. The Hanover auto insurance — 862 points. Hanover scored 5 points below American Family & Nationwide, but still scored 7 points (.7%) above the study average. Although rated lower, at 3 power circles for Overall Auto Claims Satisfaction, I’d consider its overall auto claims satisfaction close to American Family & Nationwide. Hanover received the highest rating of 5 power circles in the categories of Service Interaction and Appraisal, and a 4 power circle rating (better than most) for the most important category of Settlement. Since Hanover received no rating lower than 3 power circles in any category, I’d prefer Hanover over American Family, based on these JD Power study results, though other factors should be considered before choosing an insurance company, such as coverage, price, and the agents representing the company.

2013 JD Power US Auto Insurance Claims Study Average Score: 855 out of 1,000 points.

Below average — but less than two percent below the study average

The next nine companies may be a better choice for you, only if they have a better price and/or coverage & policy options. All but the last company received a 3 power circle rating (about average) for Overall Auto Claims Satisfaction, though they all scored 5 points (.5%) or more below the study average. I’d ignore the overall auto claim satisfaction rating, and consider these companies providing somewhat worse than average auto claims satisfaction.

*13. Safeco auto insurance — 850 points. Safeco scored 12 points (1.2%) below the next highest scoring company, The Hanover, and scored 5 points (.5%) below the study average. Safeco scored about average (3 power circles) in all categories, such as First Notice of Loss, Service Interaction, Appraisal, Repair Process, Rental Car Experience, & Settlement, making it the best of the below-average scoring companies.

*14. Allstate auto insurance — 849 points. Allstate scored 1 point (.1%) below Safeco, and scored 6 points (.6%) below the study average. Allstate rated 4 power circles in the category of Appraisal, but received the lowest rating of two power circles for the Rental Car Experience.

15. Mercury auto insurance — 848 points. Mercury scored 1 point (.1%) below Allstate, and scored 7 points (.7%) below the study average. Mercury received the lowest rating of two power circles for the category of First Notice of Loss.

*16. GEICO auto insurance — 846 points. GEICO scored 2 points (.2%) below Mercury, and scored 9 points (.9%) below the study average. Although GEICO received the 3 power circle rating (about average) for Overall Auto Claims Satisfaction, its performance in the individual categories of the claim process is inconsistent. GEICO received the highest rating of 5 power circles for the Rental Car Experience, 4 power circles for the Appraisal category, and received the lowest rating of two power circles for the categories of Service Interaction and the Repair Process. Since GEICO’s overall score is almost 1 percent below average, the higher rated categories fail to compensate for the lower scores in the lower rated categories.

17. Automobile Club Group (AAA) auto insurance — 844 points. Auto Club scored 2 points (.2%) below GEICO, and scored 1.1 points (1.1%) below the study average. Auto Club received the lowest rating of two power circles for the categories of First Notice of Loss, Appraisal, and the Repair Process. Auto Club Group consists of these subsidiary companies: Auto Club Group Insurance Company, Auto Club Insurance Association, Auto Club Property-Casualty Insurance Company, MEEMIC Insurance Company, & MemberSelect Insurance Company.

18. Liberty Mutual auto insurance — 843 points. Liberty Mutual scored 1 point (.1%) below Auto Club Group, and scored 1.2 points (1.2%) below the study average. Liberty Mutual received the lowest rating of two power circles for the categories of Service Interaction, Appraisal, and the Repair Process.

19. NCNU Insurance Exchange (AAA of Northern CA, NV, & UT) — 841 points. AAA NCNU scored 2 points (.2%) below Liberty Mutual, and scored 1.4 points (1.4%) below the study average. NCNU Insurance Exchange received the lowest rating of two power circles for the categories of First Notice of Loss & Service Interaction. AAA NCNU, formerly California State Auto Association, consists of these subsidiary companies: AAA Mid-Atlantic Insurance Company, AAA Mid-Atlantic Insurance Company of NJ, AAA Northern California NV & UT Insurance Exchange, ACA Insurance Company, Keystone Insurance Company, & Western United Insurance Company.

*20. Progressive auto insurance — 841 points. Progressive scored the same as AAA NCNU, also scoring 1.4 points (1.4%) below the study average. Progressive received the lowest rating of two power circles for the categories of Service Interaction and the Repair Process, but received the highest rating of 5 power circles for the category of Rental Car Experience. As with GEICO, I’m leery of the level of claims satisfaction, when higher rated categories fail to bring the overall score above average.

21. Metlife auto insurance — 840 points. Metlife scored 1 point (.1%) below Progressive, and scored 1.5 points (1.5%) below the study average. Although receiving the lowest rating of two power circles in most categories, including Overall Auto Claims Satisfaction, Metlife received the about average rating of three power circles for the categories of First Notice of Loss, and the most important category of Settlement. In spite of its two power circle rating, I’d consider its auto claims satisfaction similar to Progressive, AAA NCNU, & Liberty Mutual.

The Worst! — Companies scoring more than 2.6 percent below the study average

Choose these companies if they have great rates for you and you’re okay with the possibility of poor service, or if you don’t have better options, due to your driving record, or other reasons.

22. MAPFRE-Commerce auto insurance — 829 points. Commerce scored 11 point (1.1%) below the next highest scoring company, and scored 26 points (2.6%) below the study average.

*23. Farmers auto insurance — 827 points. Farmers scored 28 points (2.8%) below the study average.

*24. 21st Century auto insurance — 820 points. 21st Century scored 35 points (3.5%) below the study average.

*25. Esurance auto insurance — 818 points. Esurance scored 37 points (3.7%) below the study average.

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