By: Luke Jones, Published on May 16, 2017 08:41 AM, Last Update on May 16, 2017 05:43 AM
The new J.D. Power 2017 Canadian Auto Insurance Satisfaction Study shows that Canadian consumers are increasingly satisfied with their auto insurance, despite consistent premium rates around the country.
Indeed, the survey shows that customer satisfaction rose across Canada for the second consecutive year. In the study, released on Monday, J.D. Power points out that both price satisfaction increased across all regions, even with the median annual premium per vehicles also increasing. Premium increases were a nationwide phenomenon, rising 17% in Quebec, 16% in the Atlantic region, 11% in Alberta, and 1% in Ontario over the last two years.
“Notably, the lowest reported premium increases are in Ontario, indicating that these customers may finally be realizing Ontario’s Auto Insurance Rate Reduction Strategy to reduce premiums,” the release states. “While new-vehicle prices and costly options are driving premiums higher, the reduction strategy seems to be slowing premium increases in other provinces.”
Valerie Monet, senior director of the insurance practice at J.D. Power, said that “it does seem counterintuitive to see customer satisfaction increase as premiums rise, but customers are content to pay more when they believe they’re getting value for their money. While low prices can be effective at getting new customers in the door, those customers are ultimately willing to pay higher premiums for exceptional service,” she added. “Key performance metrics, such as making sure customers understand their policies and providing follow-up calls from customer service interactions, translate into higher satisfaction – regardless of an above-average premium.”
The report shows that overall satisfaction for all Canadian auto insurance providers averages 784 out of 1,000, an increase of 26 points year-on-year. J.D. Power does not include public crown corporation companies such as the Insurance Corporation of British Columbia, Manitoba Public Insurance and Saskatchewan Government Insurance.
J.D. Power suggests insurance companies are doing a better job at helping customers understand their policies and providing improved support.
The Canadian Auto Insurance Satisfaction Study is widely respected and is now in its 10th year. J.D. Power measures customer satisfaction across five factors on a scale of importance: non-claim interaction; price; policy offerings; billing and payment; and claims.