Auto Insurance

Over the past few years, the field of insurance has seen many changes and is continuing to undergo serious transformations. In an effort to keep up with the times as well as the needs and demands of the people, automobile insurance companies have been changing they way they conduct business. These changes have resulted in various advantages for both the customer and the insurance company as auto insurance premiums have been declining and customer satisfaction has experienced an upward swing. When prices are rising for most every day necessities and national and individual financial stability is on shaky ground, it seems that one industry is conscious of the impact of these circumstances on their customers and is attempting to do something about it. However, caution should be taken as 2001-2002 saw some of the same trends with less than favorable overall outcomes.

According to a 2008 report issued by the National Association of Insurance Commissioners, the cost of automobile insurance experienced a decline in 2006 as the average cost of auto insurance decreased by 1.7 percent. In a report by the Bureau of Labor Statistics, it was found that auto insurance increased by 2.5 percent in 2008. In 2009, it is being reported by many automobile insurance policy holders that their premiums decreased without changing insurance companies or policies. According to JD Power and Associates, approximately 42 percent of auto insurance customers reported a decrease in their premiums, which was almost two times the rate reported in 2008. This roller coaster ride of ups-and-downs may be contributed to the upheavals experienced in the marketplace over the last couple of years.

One of the results of insurance quotes premiums is an increase in customer satisfaction. JD Power and Associates reports that customer satisfaction in regard to auto insurance is at a five-year high. According to the 2009 National Auto Insurance Study, Amica Mutual ranked the highest in customer satisfaction. State Farm, Shelter, and Auto-Owners were just a few of the other companies named in the report that had high rates of customer satisfaction. The National Auto Insurance Study linked two important factors to customer satisfaction increases: 1. changes in non-claims interactions between the insurance company and the customer; 2. call center and website improvements.

According to studies conducted in the first quarter of 2009, more people are choosing to search for auto insurance using the internet, utilizing such sites as Insurance. Individuals are searching the internet for the best auto insurance deals, and auto insurance company’s website improvements have done much to enhance the customer’s shopping experience. Between 2004 and 2007, approximately 100 million auto insurance quotes were requested via the internet. In 2007 alone, almost 9 million people requested online quotes from auto insurance companies and approximately 2 million customers changed insurance companies after receiving an online quote.

In all areas of life change is inevitable, and the auto insurance field is no exception. If the trends experienced by the auto insurance industry in 2001 and 2002 are any indication of what can be expected within the next year or so, auto insurance premiums could once again be on the rise. Customer satisfaction is likely to fluctuate with the changes in auto insurance rates, and only time will tell if that will be beneficial or detrimental to both auto insurance companies and their customers.