Auto Insurance Claims Satisfaction Increases as Claimants Are Paid Faster

Auto insurance customers continue to be pleased not only with their claims settlements but also with how quickly their claims are being settled.

Also, insurance claims adjusters are doing a better job of speeding up the claims process than repair shops, new research suggests.

Claimant satisfaction increased by six points in the fourth quarter of 2012 to 861 on a 1,000-point scale from the fourth quarter of 2011, according to the latest J.D. Power and Associates 2013 U.S. Auto Claims Satisfaction Study, Wave 1. The rise was primarily due to an 11-point increase in settlement satisfaction.

As repairable and total loss claims are being paid faster, overall claimant satisfaction rises, the study says.

The study finds that the average time to pay claimants has decreased to 13.9 days in the fourth quarter of 2012, down from 16.4 days in the same period of 2011. While the average time to pay claimants for a repairable claim (11.8 days) has decreased by 1.3 days from the fourth quarter of 2011, the largest decrease is in the time it takes to pay total-loss claims, down by an average of 5.1 days to 18.5 days.

“Regardless of the claim type, the faster the claimant is paid and can move forward with a repair or to replace their vehicle, the more likely they are to be satisfied,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.

J.D. Power said the report is based on responses from more than 3,000 auto insurance customers. The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who only filed roadside assistance claims.