Insurance Claims Easier For Autos Than Homes

Published: Tue 29 Dec 2009

Larry Roth

If you've filed claims on your auto and homeowners insurance policies recently, odds are the experience involving your vehicle was a more pleasant one. That's one of the findings in the 2009 J.D. Power and Associates Claims Satisfaction Studies.

In the studies that measured responses on 1,000-point scales, auto claims experiences averaged 842 points. That was 14 points higher than the average rating for those with homeowners experiences.

Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, said prior knowledge seemed to be a key reason for the differences "Home claims are typically far more complex than auto claims, and homeowners insurance claimants tend to have less knowledge of the specifics of their policy coverage than do auto claimants," he said.

Each survey measured customer satisfaction regarding property claims by checking experiences with first notice of loss, appraisal, service interaction, repair process and settlement. Also, the auto survey checked any related vehicle-rental experience.

When the homeowners claim experience was most satisfactory (scores averaging at least 837), there was a positive effect on customer loyalty and advocacy. Among those clients, two-thirds said they "definitely will" renew their policies and 64 percent said they "definitely will" recommend their insurer. Among those customers with scores averaging no higher than 816, 49 percent said they "definitely will" renew and 42 percent said they "definitely will" urge others to do business with their insurer.

Bowler said, "While only about 6 percent of homeowners insurance customers per year file a home claim, for those who do, no other aspect of the experience with their insurer is more meaningful."

When it was time to settle, a person's possessing little understanding about the coverage provided by the policy often led to a negotiated agreement. Among those with homeowners claims, 22 percent said they negotiated the amount. Among those with auto policies, the portion was half that. "On average, satisfaction among home claimants who negotiate their settlement is 117 points lower than among those who didn't negotiate," Bowler said.

The auto claims study was based on 11,616 responses from customers nationally who filed claims within the past 12 months with their current insurer. Excluded were policyholders who only had glass/windshield damage and theft/stolen vehicle, or only roadside assistance claims.

The home claims report was based on surveys of 2,500 customers who filed claims between January 2008 and July 2009. The companies evaluated were Allstate, American Family, Amica Mutual, Farmers, Liberty Mutual, Nationwide, Safeco, State Farm, The Hartford, Travelers, and USAA.