Report: Insurance Provider Communication is Key in Achieving Customer Satisfaction with the Collision Repair Process

Erie Insurance Ranks Highest in Customer Satisfaction with the Collision Repair Process for a Second Consecutive Year

WESTLAKE VILLAGE, Calif., Dec. 22 -- Maintaining a comprehensive and consistent dialog with the consumer throughout the claims process is critical for insurance providers in achieving customer satisfaction with the collision repair process, according to the J.D. Power and Associates 2005 Collision Repair Satisfaction Study(SM) released today.

Insurance carriers that meet customer expectations through effective communication generally achieve higher levels of overall satisfaction, according to the study. For example, customers who were given an explanation of the parts to be used in their vehicle repair were considerably more satisfied than customers who were not informed. More than 75 percent of customers indicated they were informed or engaged in such discussions.

"Customers want to know and have a say in what happens in the repair process of their vehicle," said Jeremy Bowler, senior director of the insurance practice for J.D. Power and Associates. "Basic communication between the insurance company and the customer regarding what will be done to repair their vehicle, parts types the body shop is going to use, and how long repairs will take goes a long way to increase customer satisfaction."

The study measures customer satisfaction with their repair experience by examining three factors: body shop; claims/estimation; and rental car.

For a second consecutive year, Erie Insurance ranks highest in collision repair satisfaction with an index score of 852. Erie receives particularly high ratings from customers for the repair facility. Following Erie in the rankings are AAA Michigan Auto Club Group (ACG) with a score of 832, and State Farm with a score of 826 -- an improvement of 8 index points from 2004.

"Erie customers report faster repair times and a higher probability of their vehicle being repaired correctly the first time," said Bowler. "They also cite continuous contact from the provider throughout the claims process, which is critical in achieving overall satisfaction."

USAA, an insurance provider open only to the U.S. military community and their families and therefore not included in the rankings, achieves a satisfaction score higher than Erie Insurance.

The study finds that although the number of auto insurance claims is on the decline, the average cost to repair an individual vehicle has been increasing.

"Rising repair costs have increased the likelihood that damages exceed the vehicle's market value, causing an insurance carrier to total the vehicle rather than repair it," said Bowler. "However, claims settlement satisfaction is considerably lower among customers who have had their vehicles totaled, often because they owe more on their vehicle loan than the settlement amount."

The 2005 Collision Repair Satisfaction Study is based on 5,679 responses from consumers who had collision repair or body work performed on their vehicles in the past 12 months.

A more detailed listing of the results by insurance provider, as well as tips for consumers on what to do when filing an auto collision claim, can be found at the J.D. Power Consumer Center at www.jdpower.com/cc

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education and BusinessWeek. The Corporation has more than 300 offices in 40 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com/.