2014 JD Power Auto Insurance Claims Satisfaction Ratings: Best & Worst Companies

JD Power has released its 2014 US Auto Insurance 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 2014 JD Power US Auto Insurance 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 2014 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 2014 JD Power US Auto Claims Satisfaction Study is based on responses from 10,891 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 November 2013 and August 2014. The 2014 study found that the average severity of claims (based on the dollar amount of the loss) has increased for a third consecutive year. The increase in severity is due to a rise in more complex claims (those claims in which vehicles have significant structural damage & need to be towed) which account for 20% of automobile claims & 17 percent of claims in which the vehicle is declared a total loss. This is a 5% increase from 2011, when complex claims represented only 32% of all auto claims evaluated in the study.

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 insurance company may have low auto insurance rates for you, with 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 insurance 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. Some auto insurance companies scoring significantly lower than other auto insurance companies receive the same overall auto claims satisfaction rating.

For example, The Hartford scored 866 out of 1,000 points in the 2014 JD Power US Auto Insurance Claims Satisfaction Study, which is 9 points above the study average score. But The Hartford receives the same three power circle rating (about average) for overall auto claims satisfactions as Progressive, which scored 838 out of 1,000 points — 19 points (1.9%) below the study average and 28 points (2.8%) below The Hartford. When it comes to auto insurance, an industry known for customer dissatisfaction, a few percentage points higher customer satisfaction can make a big difference in a customer’s experience.

Another example is Auto Club of Southern California, rated four power circles (better than most) for overall auto claims satisfaction, only scoring one point (on a 1,000 point scale) above The Hartford, which is rated at three power circles (about average) for overall auto claims satisfaction. Auto Club of Southern California has a higher rating, but if you look at the company scores, you see it really has almost the exact same auto claims satisfaction as The Hartford.

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. Of all these factors, I consider Settlement the most important, because it doesn’t matter how satisfied a customer is with the process of having a claims settled, if the amount of the settlement is not adequate. The next most important category in my opinion is Service Interaction.

The information I provide will help you avoid thinking it might be worth paying more for a company rated about average, better than most, or among the best, with 3 or 4 or 5 power circles, when its actual claims satisfaction score is not far above average or well below average. Also, my analysis will help you decide if you should consider changing auto insurance companies, if your auto insurance company has a below average score in this study.

Not all the companies on this list sell automobile 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 (*).

2014 JD Power US Auto Insurance Claims Satisfaction Study: 25 Major Companies ranked from Best to Worst for Overall Auto Claims Satisfaction

The Best!

These first two companies received the highest numerical scores in the study, and were the only ones receiving the highest rating of 5 power circles for overall auto claims satisfaction in 2014.

1,000 points is a perfect score.

1. Amica Mutual auto insurance — 900 points. Amica scored 900 out of 1,000 possible points, 43 points (4.3%) above the 2014 study average score. Although Amica received a five power circle rating for overall auto claims satisfaction, it received a four power circle rating (better than most) in the category of Repair Process, and the lowest rating of two power circles for the category of Rental Car Experience. Amica was the only company in the 2014 study to receive the highest five power circle (among the best) rating for the category of Settlement.

2. USAA auto insurance — 896 points. USAA scored only 4 points below Amica, with 896 out of 1,000 possible points, 39 points (3.9%) above the 2014 study average score. Although USAA received a five power circle rating for overall auto claims satisfaction, it received a four power circle rating (better than most) in the category of Rental Car Experience and the very important category of Settlement, and received a three power circle (about average) rating for the category of Service Interaction.

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.

The Next Best!

3. Auto-Owners auto insurance — 879 points. Auto-owners scored 21 points on the 1,000 point scale (2.1%) below the highest scoring company, Amica, but 22 points (2.2%) above the 2014 study average. Auto-Owners received a 4 power circle rating for overall auto claims satisfaction. However, Auto-Owners received a five power circle rating for the categories of Service Interaction, Appraisal, and Rental Car Experience, which offsets the lower rating of three power circles (about average) for the category of Repair Process. Auto-owners is one of only four companies in the 2014 study receiving a four power circle (better than most) rating for the category of Settlement.

Above average — auto insurance companies scoring .9% or more above the 2014 JD Power Auto Insurance Claims Satisfaction Study average

This next group of auto insurance companies scored within 5 points of each other, providing about the same level of overall auto claims satisfaction. However, State Farm & The Hartford were the only companies in this group to receive the higher rating of four power circles in the important category of Settlement. Although State Farm, American Family, & Auto Club of SC also received four power circle ratings for overall auto claims satisfaction in the 2014 study, Auto-owners Insurance, listed above at #3, provides a slightly higher level of auto claims satisfaction, based on their scores in the 2014 study. You can see which states where Auto-owners is available here.

4. State Farm auto insurance — 869 points. State Farm scored 10 points (1.0%) below Auto-owners, but scored 12 points (1.2%) above the 2014 study average. State Farm received the highest rating of 5 power circles in the category of Service Interaction, but was rated only about average (3 power circles) for the categories of First Notice of Loss, Appraisal, Repair Process, & Rental Car Experience. State Farm is one of only four companies in the 2014 study receiving a four power circle (better than most) rating for the category of Settlement.

*5. American Family auto insurance — 868 points. American Family scored only one point (.1%) below State Farm, and scored 11 points (1.1%) above the 2014 study average. Although rated four power circles for Overall Claims Satisfaction, American Family received the highest rating of five power circles in the categories of Service Interaction and the Rental Car Experience, which offset the lower rating of three power circles (about average) in the categories of Appraisal and Settlement.

6. Auto Club of Southern California auto insurance — 867 points. Auto Club scored one point (.1%) below American Family, but still 10 points (1.0%) above the 2014 study average. The Auto Club of SC score skewed higher by receiving the highest rating of five power circles in the category of Repair Process. But Auto Club of SC customers surveyed in this study rated the company lower than its overall auto claims satisfaction rating, in four of the seven factors considered, at three power circles (about average), including the categories of Service Interaction, Appraisal, Rental Car Experience, and Settlement.

7. The Hartford auto insurance — 866 points. The Hartford scored only 1 point below Auto Club of SC, and scored 9 points (.9%) above the 2014 study average. The Hartford received inconsistent ratings, from the best to the worst, among the seven factors considered. The Hartford received the highest rating of 5 power circles in the category of the Repair Process, 4 powers circles in the categories of Appraisal & Settlement, but rated only about average (3 power circles) for the categories of First Notice of Loss & Service Interaction, and received the lowest rating of two power circles for the category of Rental Car Experience.

Slightly above average

8. New Jersey Manufacturers auto insurance — 864 points. New Jersey Manufacturers (NJM), scored 864 points out of 1,000 possible points, which is 7 points (.7%) above the industry average. Usually, NJ Manufacturers is one of the highest scoring companies in this study, so its 2014 score may indicate service is not what it used to be at this company. 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.

Average

Erie, Travelers, & Mercury scored within a range of 3 points on the 1,000 point scale, making them having about the same level of overall auto insurance claims satisfaction, as measured by the 2014 study.

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10. Travelers auto insurance — 858 points. Travelers scored one point (.1%) below Erie, and one point (.1%) above the study average. But unlike Erie, Travelers received a higher rating of four power circles (better than most) in the categories of Appraisal and Rental Car Experience. Like Erie, Travelers rated three power circles (about average) in the remaining five of the seven factors/categories considered. I’d prefer Travelers slightly over Erie, based solely on the 2014 study results, since Travelers scored about the same, but had higher satisfaction ratings than Erie in two categories. However, I’d recommend reading my insurance company reviews of Travelers and Erie, to see how these companies performed in this study and other JD Power insurance studies over the last several years, if you are trying to decide between these two auto insurance companies.

2014 JD Power US Auto Insurance Claims Study Average Score: 857 out of 1,000 points.

11. Mercury auto insurance — 856 points. Mercury scored 2 points (.2%) below Travelers, and scored only 1 point (.1%) below the 2014 study average. Mercury rated about average (three power circles) in six of the seven categories, but received the lowest rating of two power circles for the category of Rental Car Experience.

Slightly Below Average

GEICO, Nationwide, COUNTRY, & Safeco scored in a range of two points from each other, thereby providing about the same level of overall auto insurance claims satisfaction, as measured by the 2014 study. Allstate scored slightly lower than GEICO, Nationwide, COUNTRY, & Safeco. All these companies are rated three power circles for overall auto insurance claims satisfaction in the 2014 study, but their scores show a lower level of auto claims satisfaction than companies higher on this list.

*12. GEICO auto insurance — 854 points. GEICO scored only 4 points (.4%) below Travelers, and scored only 3 points (.3%) below the study average. Although GEICO scored close to the companies I rated as “average” above, I consider GEICO as “slightly below average” because it’s the first auto insurance company on this list to receive the lowest JD Power rating of two power circles in two separate factors/categories — Service Interaction and Repair Process. GEICO rated four power circles (better than most) for Rental Car Experience, and “about average” (three power circles) in the remaining three factors (as well as overall auto claim satisfaction), including Settlement. Although I consider Settlement the most important factor/category for consumers to consider, Service Interaction is a close second, and GEICO received the lowest rating in that category.

*13. Nationwide auto insurance — 853 points. Nationwide scored only one point (.1%) below GEICO, and 4 points (.4%) below the 2014 study average. Although Nationwide scored 6 points (.6%) lower than Erie, it was rated by its customers at three power circles for Overall Claims Satisfaction and all six factors, the same as Erie. I’d prefer Nationwide over GEICO, if considering only these 2014 study results, since Nationwide received no rating below about average (3 power circles) in any category. However, if you are trying to decide between GEICO & Nationwide, I’d recommend reading my reviews of these two insurance companies, to see how Nationwide & GEICO performed in this study and other JD Power insurance studies over the last several years.

14. COUNTRY auto insurance — 852 points. Country scored only one point (.1%) below Nationwide, scored the same as Safeco, and scored 5 points (.5%) below the 2014 study average. Like Safeco, COUNTRY received the lowest JD Power rating of two power circles in the category of Rental Car Experience, but unlike Safeco, received the highest rating of five power circles (among the best) in the categories of Appraisal & Repair Process. Country received a three power circle (about average) rating in the three remaining categories, including Service Interaction and Settlement, as well as overall satisfaction. I’d prefer COUNTRY over Safeco, if considering only these 2014 study results. However, if you are trying to decide between COUNTRY & Safeco, I’d recommend reading my reviews of these two insurance companies, to see how COUNTRY & Safeco performed in this study and other JD Power insurance studies over the last several years.

*15. Safeco auto insurance — 852 points. Safeco scored only one point (.1%) below Nationwide, scored the same as Country, and scored 5 points (.5%) below the 2014 study average. Safeco rated “about average” (three power circles) for five out of six factors, but received the lowest JD Power rating of two power circles in the category of Rental Car Experience. Although they scored the same in the 2014 study, I’d prefer COUNTRY over Safeco, if considering only these 2014 study results, due to COUNTRY’s higher rating in two factors. However, if you are trying to decide between COUNTRY & Safeco, I’d recommend reading my reviews of these two insurance companies, to see how COUNTRY & Safeco performed in this study and other JD Power insurance studies over the last several years.

*16. Allstate auto insurance — 849 points. Allstate scored 3 points (.3%) below Safeco, and scored 8 points (.8%) below the study average. However, Allstate rated four power circles in the categories of Appraisal & Rental Car Experience, and received the rating of three power circles (about average) in the other four factors, arguably making Allstate a better choice than Safeco (and possibly COUNTRY, too, since Allstate received no two power circle rating in any factor), in spite of Safeco’s slightly higher score.

Below Average

Metlife, Farmers, and Progressive scored within a range of 4 points of each other, thereby providing about the same level of overall auto insurance claims satisfaction.

Metlife, Farmers, and Progressive still rated three power circle (about average) for overall auto claims satisfaction in the 2014 study, but their scores are enough below the 2014 study average, to say they provide less auto claims satisfaction than the other companies rated at three power circles (about average) for overall auto claims satisfaction. I wouldn’t choose any of these companies (or the rest of the companies remaining to be listed) with the expectation of problem-free claims service, but some of them may have low auto insurance rates for you. For example, Progressive, 21st Century, and Esurance (along with GEICO, ranked higher on this list) are known to compete by offering low rates more than other auto insurance companies.

However, there is no connection between paying lower rates and having to accept worse service, or paying more will get you better service. In my own experience, some auto insurance companies scoring about the same as or below the 2014 average study offer rates twice as much as the best priced companies for me, and some of the best priced companies for me had above average scores in this study. The companies having the best and worst rates for me are not likely to be the same companies having the best or worst auto insurance rates for you, which is why I recommend shopping your coverage with as many auto insurance companies as you can. You can use the ad at the end of this review to get auto insurance quotes from many of the insurance companies on this list.

17. Metlife auto insurance — 842 points. Metlife scored 7 points (.7%) below Allstate, and scored 15 points (1.5%) below the 2014 study average. Metlife received the lowest rating of two power circles in the categories of Service Interaction & Appraisal.

18. Farmers auto insurance — 841 points. Farmers scored only 1 point (.1%) below Metlife, and scored 16 points (1.6%) below the 2014 study average. Farmers received the lowest rating of two power circles in the categories of Appraisal & Rental Car Experience.

*19. Progressive auto insurance — 838 points. Progressive scored 3 points (.3%) below Farmers, and scored 19 points (1.9%) below the 2014 study average. Progressive received the lowest rating of two power circles in the categories of Service Interaction & the Repair Process.

Further Below Average

California State Automobile Association (CSAA), Automobile Club Group, 21st Century, and Liberty Mutual received the lowest JD Power rating of two power circles for overall auto insurance claims satisfaction, but provide a higher level of overall auto claims satisfaction, as measured by their scores in the 2014 study, than the last two companies on this list, in spite of the last two companies receiving the same rating for overall auto claims satisfaction.

California State Automobile Association (CSAA), Automobile Club Group, 21st Century, and Liberty Mutual scored within a range of 3 points of each other, thereby providing about the same level of overall auto insurance claims satisfaction.

20. California State Automobile Association (CSAA) auto insurance — 833 points. CSAA scored 9 points (.9%) below Metlife, 5 points (.5%) below Progressive, and scored 24 points (2.4%) below the 2014 study average. CSAA received the lowest rating of two power circles in four of the six factors, including the categories of First Notice of Loss, Service Interaction, Appraisal, & Rental Car Experience.

21. Automobile Club Group auto insurance — 833 points. Auto Club scored the same in the 2014 study as CSAA, also scoring 9 points (.9%) below Metlife, 5 points (.5%) below Progressive, and scoring 24 points (2.4%) below the 2014 study average. Auto Club received the lowest rating of two power circles in five of the six factors, including the categories of First Notice of Loss, Service Interaction, Appraisal, Repair Process, & Rental Car Experience.

*22. 21st Century auto insurance — 832 points. 21st Century scored only 1 point (.1%) below CSAA & Auto Club, and scored 25 points (2.5%) below the 2014 study average. 21st Century received the lowest rating of two power circles in five of the six factors, including the categories of First Notice of Loss, Service Interaction, Appraisal, Repair Process, & Settlement.

23. Liberty Mutual auto insurance — 831 points. Liberty Mutual scored only 1 point (.1%) below 21st Century, and scored 26 points (2.6%) below the 2014 study average. Liberty Mutual received the lowest rating of two power circles in five of the six factors, including the categories of Service Interaction, Appraisal, Repair Process, Rental Car Experience, & Settlement

The companies with the worst 2014 auto insurance claims satisfaction

The two remaining companies scored the worst in the 2014 study, with Esurance providing a much lower level of overall auto claims satisfaction than the other companies ranked higher on the list, and Commerce – MAPFRE providing significantly less overall auto claims satisfaction than Esurance, as measured by the 2014 study.

24. Esurance auto insurance — 816 points. Esurance scored 15 points (1.5%) below the previous lowest scoring company, Liberty Mutual, and scored 41 points (4.1%) below the 2014 study average. Esurance received the lowest rating of two power circles in five of the six factors, including the categories of First Notice of Loss, Service Interaction, Appraisal, Rental Car Experience, & Settlement.

25. MAPFRE / Commerce auto insurance — 804 points. MAPFRE / Commerce scored 12 points (1.2%) below the previous lowest scoring company, Esurance, and scored 53 points (5.3%) below the 2014 study average. MAPFRE / Commerce received the lowest rating of two power circles in five of the six factors, including the categories of First Notice of Loss, Service Interaction, Appraisal, Rental Car Experience, & Settlement.

Now you know how 25 major U.S. auto insurance companies are ranked for auto claims satisfaction as of October 2014, start shopping now to save money and improve your service. You really can accomplish both these goals if you get price quotes from all the leading insurance companies.

Do you agree with my assessment of the JD Power ratings for the best & worst companies for auto insurance claims in 2014? What do you think of the 2014 JD Power Auto Insurance Claims Satisfaction Study? Comment on my facebook page. Follow me on Twitter for important insurance consumer news & new blog entries at CarInsWatch.