Pandemic-Driven Auto Insurance Claims Satisfaction: A Record High and What It Means for the Future

Record-High Customer Satisfaction with Auto Claims

Auto insurers used the decline in auto damage claims during the COVID-19 pandemic as an opportunity to refine their claims processes, and customers have noticed. According to the J.D. Power 2020 U.S. Auto Claims Satisfaction Study, the customer services improvements have led to a record-high customer satisfaction. These improvements include ensuring that representatives are always immediately available; completing work when promised; and providing multiple services at first notice of loss.

Cycle Time Improves as Claims Volume Slows

Auto insurers have upped their game during the pandemic, taking advantage of the drop in frequency to increase the speed of processing for claimants. Overall cycle time for claimants with reparable vehicles has improved to just 10.3 days during the pandemic, down from the pre-virus average of 12.6 days. This year’s study was fielded in four waves from November 2019 through September 2020, giving J.D. Power the ability to compare pre-virus levels of customer satisfaction with those experienced during the pandemic.

Use of Direct Repair Program (DRP) Shops Improves Satisfaction

The industry’s growing use of directly affiliated repair shops is paying off with a significantly higher overall satisfaction score (888) than for independent repair shops (844). This is driven by quicker cycle times among DRP shops and regular updates on progress. Given the reduced mileage on U.S. roadways this year, U.S. auto insurers are also returning over $14 billion to their customers nationwide in response to reduced driving during the pandemic, according to a Triple-I estimate.

In conclusion, the pandemic has served as a catalyst for significant improvements in auto insurance claims satisfaction. As claims volumes start to normalize, maintaining this high level of service will be crucial. For consumers, it's a good time to review your auto insurance policy and consider switching to an insurer with a strong record of customer satisfaction.