Direct premiums written in the personal lines auto insurance market grew nearly 5% to $199 billion last year, with consumers remaining satisfied with their carriers, according to the latest study from J.D. Power.
According to its 2016 US Insurance Shopping Study, direct writers have won much of this business thanks to their heavy Internet presence. A full 74% of shoppers say they use websites or insurance aggregators for obtaining quotes and researching information, leading them to direct writers.
Yet customer satisfaction is still high for insurance companies that do business through agents.
For the fourth year in a row, Pennsylvania-based Erie Insurance received the highest ranking in customer satisfaction with auto insurance purchase experience, receiving a score of 853 out of 1,000.
In fact, Erie tied with
Liberty Mutual among insurers in providing a satisfying purchase experience, followed by The
Hartford (850), American Family (845) and Automobile Club Group (840).
Terry Cavanaugh, president and chief executive of Erie, credits its agent model for that win.
"Our strong relationship with our agents helps us earn our reputation for valued protection and superior customer service," Cavanaugh said. "We’re committed to that distinctive relationship and the responsibility to meet the evolving need and expectations of our customers."
According to the survey, roughly half of auto insurance shoppers close the purchase through direct contact with an agent.
Greg Hoeg, vice president of US insurance operations at JD Power, agrees that some personal contact still remains necessary and valued for many consumers.
"While many consumers want to shop online, they often still want to talk to someone when they buy their insurance to make sure they are getting the right coverage or have questions about their policy answered,” Hoeg said. “Insurers need to focus on the delicate balance of providing an easy shopping experience while providing product differentiation and professional service."
