Advertising, Claims Handling Drive Reputations of Auto Insurers

October 18, 2010

Consumers have been highly satisfied with their auto insurance companies over the past year, and they view Allstate, State Farm and Geico as the most reputable providers, according to a new survey.

The survey conducted in August by Colorado-based Market Force Information, which specializes in customer intelligence, found that Allstate and State Farm Insurance nearly tied for insurers with the best reputation, with each earning about 21 percent of the votes. Geico ranked third with 14 percent, while USAA and Progressive each earned 6 percent to tie for fourth place.

When asked which company is doing the best job communicating its value to consumers, Geico outscored all others by a large margin. Four out of 10 consumers selected Geico, followed by Allstate, Progressive and State Farm, with 22 percent, 17 percent and 11 percent, respectively.

A key driver in satisfaction with auto insurance providers is how they process claims, the survey suggests. Of the 18 percent of survey respondents who reported filing a claim with their auto insurer in the past year, 85 percent said they were satisfied.

More than three out of four of the respondents said they saw an auto insurance ad in the last 60 days, and most (93 percent) reported seeing the ad on television.

Advertising awareness appeared to be a large motivator among consumers who contemplated switching providers. One quarter of the study participants who said they considered switching to a different company had checked out another insurance provider based on an ad they saw.

The survey was conducted in August among a network of more than 300,000 independent mystery shoppers and merchandisers, according to the research firm.

Topics Carriers Claims Auto

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Insurance Journal West October 18, 2010
October 18, 2010
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