JD Power Auto Insurance Customer Satisfaction Study 2014: Analyzing the Ratings & Company Scores

JD Power released its annual US Auto Insurance Customer Satisfaction Study for 2014 on June 20th, 2014. As I have noted before in my reviews of JD Power insurance studies, consumers need to consider each auto insurance company’s numerical score for the region where they reside, and not rely on the Power Circle ratings assigned by JD Power alone, to know if a company is providing better or worse customer satisfaction than its competitors. Too often, a company with a higher rating, such as a a four power circle rating (better than most), scored close enough to companies with lower ratings, such as a three power circle rating (about average), where it’s hard to say the higher rated company is really providing higher auto insurance customer satisfaction.

For example, in this 2014 study for the Florida region, Auto-Owners Insurance scored 815 points out of 1,000 possible points, and received the rating of four Power Circles (better than most). However, Progressive Insurance, in the same Florida region, scored 811 out of 1,000 points, but was rated three Power Circles (about average). An auto insurance shopper getting a price quote from Progressive Insurance & Auto-Owners Insurance, might be lured into paying more for an Auto-Owners auto insurance policy, based on its higher JD Power auto insurance customer satisfaction rating. But does a 4 point difference on a 1,000 point scale, really mean Auto-Owner’s Florida auto insurance customers are more satisfied than Progressive’s Florida auto insurance customers? I don’t think so.

This review will analyze the numerical scores for each auto insurance company in each of the 11 U.S. regions included in the 2014 auto insurance customer satisfaction study, and rank them into a category of best, better than average, average, below average, and worst, so you are not misled into thinking companies with higher ratings, but scoring about the same as lower rated companies, are better than they are.

2014 JD Power Auto Insurance Customer Satisfaction Study Analysis: Ranking the Companies from Best to Worst in each Region

JD Power has changed the format of this study in recent years, from what was once a national study, into eleven regional or single state studies. Some major insurance companies are very important or available in only one or a few states, so the regional format is an improvement over the national study. Several high scoring companies for auto insurance customer satisfaction in one of the regional studies, such as Texas Farm Bureau, Pemco, & Wawanesa, were never large enough to be included in the old national study format, since they have customers in only one or two states, but they are important companies, if you live in a state where they are available. The study now rates a lot more companies than it did under the national study format. To use this review, go to the regional study section for the state where you live.

I break down the rankings into the categories of Best, Better-than-average, Somewhat-better-than-average, Average, Below-average, & Worst. The Best category companies scored about 3% higher than the regional average or more. The Better-than-average category companies scored about 2% or more better than the regional average. Somewhat-better-than-average companies scored about 1% higher than average or more. Below-average companies scored about 1% or more lower than the regional average. The Worst scoring auto insurance companies scored about 2% or more lower than the study average. a 2% or 3% variance from the average is not a huge difference in auto insurance customer satisfaction, but most of the companies in this JD study fall into this range. Given the high degree of dissatisfaction most people have with insurance in general, it makes sense to choose a higher scoring company, if the rates are competitive and the coverage is adequate for your needs.

The JD Power study measures customer satisfaction across five factors: Customer /company interaction, Pricing, Policy offerings, Billing and payment, and Claims. In my analysis of each region, I’ll point out if any companies perform much better or worse in the factors of Pricing or Claims than their score or overall customer satisfaction rating indicates.

Before I show you the scores & my rankings for the major auto insurance companies in each region, let me tell you about the single highest-scoring company by far in every region. It’s called USAA (United Services Automobile Association), and you may be aware of it. Unfortunately, USAA restricts eligibility for its insurance to U.S. military members, their spouses & children, and honorably discharged veterans.

The Highest Scoring Auto Insurance Company for Auto Insurance Customer Satisfaction in all 2014 Regional Studies:

USAA (United Services Auto Association)

USAA scores much higher than the other five power circle rated auto insurance companies, and it is the clear winner of the 2014 study. USAA scored from 893 to 925 out of 1,000 points, depending on the region. The next highest scoring company is Amica, at 868 out of 1,000 points, making USAA’s score in its worst performing region, still 25 points (2.5%) better than the next highest scoring company. Although USAA & Amica (among other companies) are both rated at five power circles for overall auto insurance customer satisfaction, USAA clearly provides higher satisfaction, and is in a category by itself. USAA has maintained high scores, like this year’s scores, year after year for this annual study. If you have some relationship to the military or US Department of Defense, you should contact USAA to see if you are eligible for membership.

California Region

Infinity P&C, Esurance, and Kemper were included in the California region study, but their customer response sizes were too small to be scored. In spite of Travelers having the worst score in the California regional study, and the lowest power circle rating in four out of five categories, customers rated Travelers four power circles (better than most) in the Claims category.

Regional average: 795 out of 1,000 points.

Best: Wawanesa (852)

Better than average: Ameriprise (824), Auto Club of Southern California /AAA (822).

Somewhat better than average: The Hartford (814), State Farm (813).

Average: GEICO (795), Allstate (791).

Below average: Mercury (785), Liberty Mutual (782), Progressive (782).

Worst: Safeco (777), Nationwide (776), California State Auto Assoc. / AAA (774), Farmers (772), 21st Century (771), Travelers (765)

Central Region (Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota)

Included in the Central region study, but not rated or scored, because of its small sample size, is Automobile Club Group. Although it received the lowest rating of two power circles for overall satisfaction and in 4 of the 5 categories used as scoring factors (including claims), Auto Club of Southern California Group rated 4 power circles (better than most) in the category of Pricing.

Regional average: 820 out of 1,000 points.

Best: Auto-Owners Insurance (853).

Better than average: Shelter Insurance (844).

Somewhat better than average: State Farm (830), GEICO (829).

Average: Farm Bureau Mutual (819) American Family (818), Safeco (817) Hartford (814), Allstate (810).

Below average: Travelers (801), Liberty Mutual (800), Auto Club of Southern California Group (798) Farmers (796).

Worst: Nationwide (789), Progressive (788).

Florida Region

Amica Mutual, Direct General, Farmers, Infinity P&C and Mercury were included in the Florida regional study, but not scored or ranked due to their small sample size. GEICO was rated at three power circles (about average) for overall satisfaction, but rated four power circles (better than most) for the category of Pricing, and received the lowest rating of two power circles for the category of Claims. Metlife was also rated at three power circles (about average) for overall satisfaction in the Florida, but rated five power circles (among the best) for the category of Pricing, and received a four power circle rating (better than most) for the category of Claims. Progressive, too, was rated at three power circles (about average) for overall satisfaction, but rated four power circles (better than most) for the category of Pricing. Travelers received the lowest rating of two power circles for overall satisfaction, but received a four power circle rating (better than most) for the category of Claims.

Regional average: 805 out of 1,000 points.

Best: None.

Better than average: The Hartford (827)

Somewhat better than average: Auto-Owners Insurance (815), Progressive (811), Metlife (810)

Average: Allstate (807), State Farm (805), GEICO (804).

Below average: Liberty Mutual (794), Travelers (787), Esurance (785).

Worst: Safeco (780), Nationwide (772), 21st Century (762).

Mid-Atlantic Region (Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia)

Included in the Mid-Atlantic regional study, but not scored or rated because of their small sample size, are Amica Mutual, CSAA Insurance Group, Esurance and MetLife. Although receiving a five power circle rating (among the best) for overall satisfaction, Erie insurance received a three power circle rating (about average) in the category of Claims. GEICO received a three power circle rating (about average) for overall satisfaction, but received a four power circle rating (better than most) for the category of Pricing.

Regional average: 806 out of 1,000 points.

Best: New Jersey Manufacturers (866) (NJ Manufacturers Insurance is available only to New Jersey Business & Industry Association members, State of New Jersey employees, previously insured drivers with NJM).

Better than average: The Hartford (833), Erie (830).

Somewhat better than average: None.

Average: GEICO (809), State Farm (809).

Below average: Allstate (797), Nationwide (795).

Worst: Progressive (789), Travelers (788), 21st Century (784), Plymouth Rock Assurance (781), Liberty Mutual (779).

New England Region (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont)

Allstate is rated three power circles (about average) for overall satisfaction, but received a four power circle rating (better than most) in the category of Claims. GEICO is rated three power circles (about average) for overall satisfaction, but received a four power circle rating (better than most) in the category of Pricing, and the lowest rating of two power circles for the Claims category. Progressive is rated three power circles (about average) for overall satisfaction, but received the lowest rating of two power circles in the category of Claims. Hartford is rated three power circles (about average) for overall satisfaction, but received a four power circle rating (better than most) in the categories of Pricing and Claims.

Regional average: 795 out of 1,000 points.

Best: Amica (868), State Farm (833)

Better than average: Nationwide (814)

Somewhat better than average: Hartford (802)

Average: Allstate (792), Progressive (791).

Below average: GEICO (787), Liberty Mutual (785), Plymouth Rock Assurance (785), MAPFRE – Commerce Insurance (781).

Worst: Arbella (776), Travelers (773), Safety Insurance (772), Metlife (767), Hanover (760).

New York Region

Included in the New York regional study, but not scored or rated because of their small sample size, are Amica Mutual, Erie Insurance and Kemper Insurance. GEICO & State Farm both received the five power circle rating for overall satisfaction in the NY region, but in most other regions, their scores would not be high enough to deserve the top rating. Although it received a five power circle rating for overall satisfaction in the NY region, GEICO received a three power circle rating (about average) for the category of Claims. Both New York Central Mutual & The Hartford received a five power circle rating (among the best) in the Claims category.

Regional average: 805 out of 1,000 points.

Best: None.

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Somewhat better than average: GEICO (822) State Farm (822).

Average: New York Central Mutual (811), Hartford (810), Liberty Mutual (800).

Below average: Allstate (794) Metlife (794), Nationwide (794), Travelers (794).

Worst: Progressive (773).

North Central Region (Illinois, Indiana, Michigan, Ohio, Wisconsin)

Included in the North Central region study, but not rated or scored due to their small sample size, are Esurance and Indiana Farm Bureau. Although it was rated for overall satisfaction at four power circles (better than most), Country Insurance received the highest rating of five power circles for the Claims category. Likewise, four-power-circle rated Erie Insurance received the five power circle rating (among the best) for the categories of Claims and Pricing. Three-power-circle rated GEICO rated four power circles (better than most) in the category of Pricing, but received the lowest rating of two power circles for the Claims category. Michigan Farm Bureau, rated three power circles (about average) for overall satisfaction, received a four power circle rating (better than most) for the Claims category. Progressive Insurance, rated three power circles (about average) for overall satisfaction, received a four power circle rating (better than most) for the Claims category and for the Pricing Category. The Hartford, rated three power circles (about average) for overall satisfaction, received a five power circle rating (among the best) for the Claims category and for the Pricing Category.

Regional average: 816 out of 1,000 points.

Best: None.

Better than average: Auto Owners (840).

Somewhat better than average: State Farm (829), Grange Insurance (826), Erie Insurance (825), COUNTRY Insurance (824)

Average: Hartford (818).

Below average: American Family (809), GEICO (809), Michigan Farm Bureau (809), Nationwide (809), Progressive (808), Liberty Mutual (807), Allstate (800).

Worst: Farmers (794), Auto Club Group / AAA (790), Hanover (788).

Worst of the worst: Metlife (761).

Northwest Region (Idaho, Montana, Oregon, Washington, Wyoming)

Included in the Northwest regional study, but not scored or rated, due to each company’s small sample size, are COUNTRY and Kemper Insurance. Although its rated three power circles (about average) for overall satisfaction, GEICO was rated four power circles (better than most) for the category of Pricing. Mutual of Enumclaw received the highest five power circle rating in the category of Claims, in spite of its four power circle rating for overall satisfaction. Nationwide Insurance, in spite of receiving the lowest two power circle rating for overall satisfaction and in several categories, was rated four power circles (better than most) for the category of claims. Four-power-circle-rated Hartford received a five power circle rating in the category of Pricing.

Regional average: 812 out of 1,000 points.

Best: PEMCO Insurance (854)

Better than average: Hartford (834).

Somewhat better than average: State Farm (829), Mutual of Enumclaw (828).

Average: American Family (818), Safeco (808).

Below average: GEICO (802), Nationwide (798), Farmers (797), Progressive (794).

Worst: Allstate (789), Liberty Mutual (784).

Southeast Region (Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee)

Included in the Southeast regional study, but not rated or scored due each company’s small sample size, are Amica Mutual, COUNTRY, The Hartford, Erie Insurance, Esurance, Farmers, Kemper, MetLife, National General and Shelter Insurance. Although its rated four power circles (better than most) for overall satisfaction, Alfa received a five power circle rating (among the best) for the Claims category. GEICO, rated three power circles (about average) for overall satisfaction, rated five power circles (among the best) in the category of Pricing, but received the lowest rating of two power circles for the Claims category. North Carolina Farm Bureau, highly rated for overall satisfaction and Pricing, rated three power circles (about average) in the category of Claims.

Regional average: 816 out of 1,000 points.

Best: None.

Better than average: Tennessee Farm Bureau (844), North Carolina Farm Bureau (843), Auto Owners Insurance (839).

Somewhat better than average: Alfa Insurance (832), Kentucky Farm Bureau (824)

Average: GEICO (820), Liberty Mutual (819), State Farm (819), Progressive (817).

Below average: Safeco (805), Travelers (805).

Worst: Nationwide (798), Allstate (794).

Southwest Region (Arizona, Colorado, Nevada, New Mexico, Utah)

Included in the Southwest regional study, but not rated or scored, due to their small sample size, are Auto-Owners Insurance and Nationwide. Although State Farm received a top rating for overall satisfaction, State Farm received only a three power circle rating (about average) in the category of Pricing. GEICO rated three power circles (about average) for overall satisfaction, but rated five power circles (among the best) in the category of Pricing. Liberty Mutual also rated three power circles (about average) for overall satisfaction, but rated five power circles (among the best) in the category of Claims. Safeco received the lowest two power circle rating for overall satisfaction, but received a four power circle rating (better than most) in the category of Claims. Likewise, the three-power-circle-rated Hartford also received a four power circle rating (better than most) in the category of Claims.

Regional average: 817 out of 1,000 points.

Best: None.

Better than average: State Farm (836).

Somewhat better than average: None.

Average: Liberty Mutual (820), The Hartford (820), GEICO (816).

Below average: American Family (809), Farmers (805), Allstate (801), Progressive (798).

Worst: California State Auto Assoc. / AAA Group (790), Safeco (790)

Texas Region

Included in the Texas regional study, but not ranked due to their small sample size, are Amica Mutual, Auto Club of Southern California Insurance Group and Kemper Insurance. Although GEICO & Progressive rated three power circles (about average) for overall satisfaction, they both rated four power circles (better than most) in the category of Pricing. However, Progressive received the lowest rating of two power circles for the Claims category. Allstate rated four power circles (better than most) for overall satisfaction, but received the lowest rating of two power circles for the Pricing category. State Farm rated three power circles (about average) for overall satisfaction, but received the lowest rating of two power circles in the category of Pricing. However, State Farm received the highest rating of five power circles for the Claims category.

Regional average: 820 out of 1,000 points.

Best: Texas Farm Bureau (852).

Better than average: None.

Somewhat better than average: Allstate (830), State Farm (826).

Average: GEICO (815), Progressive (813).

Below average: Farmers (803), Nationwide (798).

Worst: Liberty Mutual (785).

JD Power Auto Insurance Customer Satisfaction Study Review Summary

The 2014 U.S. Auto Insurance Customer Satisfaction Study was based on responses from 44,661 auto insurance customers. The survey data was collected in March and April 2014, per the press release from JD Power. The JD Power press release for this study also says, in spite of steady increases in premium prices over the last five years, overall satisfaction with auto insurance companies has increased, and less people are shopping their auto insurance. Here’s an excerpt from the press release:

‘While the percent of customers experiencing an insurer-initiated premium increase is about even to last year, 19 percent vs. 20 percent in 2013, among those who experienced a rate hike, the average increase is much lower than last year, $86 in 2014, compared with $153 in 2013.

“A premium increase often triggers shopping behavior, but we’re seeing fewer people shopping,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power. “This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they’re necessary, and demonstrating the value of their coverage.”’

Source: JD Power 2014 U.S. Auto Insurance Customer Satisfaction Study press release.

The press release also states 51% of those auto insurance customers surveyed definitely will renew their current auto insurance policy. Although I see little value in changing auto insurance companies every year, if it’s only to save a few dollars, I think it’s very important to shop your auto & home insurance every year (or at least every two years), to get additional opinions on your coverage to avoid gaps, and make sure you are not over-paying for your coverage. Some companies charge a lot more than other companies for the same coverage, and no single company has low rates for every type of driver. Change your zip code, the type of car you drive, or any one of many rating factors used by insurance companies, and the company having a good rate for you may have the worst rate for you.

Too many people blindly renew their auto & home insurance policies and never shop, allowing insurance companies to charge what they want, and not compete with each other by offering the best price. Consider this estimate from the J.D. Power 2014 U.S. Auto Insurance Shopping Study, released earlier this year: only 13 percent of customers who experience an increase in their premiums shop for a new provider. If an insurance company can raise its rates and retain 87% of its customers, it explains why many big brand name auto insurance companies have frequent rate increases.

The information I provide above, in my review of each of the eleven US regions surveyed in this latest JD Power auto insurance study, shows you the high scoring companies, and lower scoring companies with strong satisfaction in Pricing and Claims, as well as the poorer performing companies which may be over-priced for you. The only way to find the best combination of service, coverage and price, is for you to conduct your own personal survey of rates, by getting price quotes from all the leading auto insurance companies in your state.

What do you think of my analysis of the 2014 JD Power auto insurance customer satisfaction ratings for the major auto insurance companies in the USA? Comment on my facebook page. If you have questions and would like my help, you can reach me at help@smartshopyourcarinsurance.com. Follow me on Twitter for important insurance consumer news & new blog entries at CarInsWatch. See auto & home insurance company reviews rating each company’s pricing, claims handling and customer service for over 40 different companies; customer complaint analysis for the major insurance companies in each US State; term life insurance rate surveys and more, on my home page at smartshopyourcarinsurance.com.