It is important that even consumers with less than perfect credit be satisfied with their car insurance carrier.
Credit Repair and Car Insurance
Here at Auto Credit Express, our twenty years of experience with credit-challenged car buyers has led to some interesting findings, not the least of which is how choosing the right auto insurance company can impact the outcome of a high-risk auto loan.
That's because many consumers with credit problems are also working within fairly tight budget constraints, which makes an affordable auto insurance policy from an insurer that responds to their needs all the more important.
J.D. Power 2014 U.S. Auto Insurance Study
Earlier today, information services firm J.D. Power released its annual Auto Insurance Study which measures customer satisfaction in five different areas: interaction; price; policy offerings; billing and payment; and claims.
Survey results indicate that overall consumer satisfaction with auto insurance companies is not only up over last year, it's the highest since the study began back in 2000. Also, according to J.D Power, "While the percent of customers experiencing an insurer-initiated premium increase is about even to last year, 19 percent vs. 20 percent in 2013, among those who experienced a rate hike, the average increase is much lower than last year, $86 in 2014, compared with $153 in 2013."
That last bit is especially good news for budget-constrained car owners.
"A premium increase often triggers shopping behavior, but we're seeing fewer people shopping," said Jeremy Bowler,senior director of the insurance practice at J.D. Power. "This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they're necessary, and demonstrating the value of their coverage."
Unlike the firm's more well-known studies such as its Initial Quality Survey which covers the entire U.S. market and was released earlier this week, the J.D. Power U.S. Auto Insurance Study divides the country up into eleven different regions.
Those regions, with the rankings of the top three insurance providers within each one, along with their scores (based on a 1,000-point scale), are as follows:
Best Insurance Providers by Area
| California: |
Auto Club of Southern California Insurance Group (822)
| Central: |
Auto-Owners Insurance (853)
State Farm (830)
| Florida: |
The Hartford (827)
Auto-Owners Insurance (815)
| Mid-Atlantic: |
The Hartford (833)
Erie Insurance (830)
GEICO and State Farm in a tie (809 each)
| New England: |
Amica Mutual (868)
State Farm (833)
| New York: |
GEICO and State Farm in a tie (822 each)
New York Central Mutual (811)
| North Central: |
Auto-Owners Insurance (840)
State Farm (829)
Grange Insurance (826)
| Northwest: |
PEMCO Insurance (854)
The Hartford (834)
State Farm (829)
| Southeast: |
Tennessee Farm Bureau (844)
North Carolina Farm Bureau (843)
Auto-Owners Insurance (839)
| Southwest: |
State Farm (836)
Liberty Mutual and The Hartford in a tie (820 each)
| Texas: |
Texas Farm Bureau Insurance (852)
State Farm (826)
Note: According to J.D. Power, USAA, which scored at the top of the list in all eleven regions, is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings.
The Bottom Line
It's especially important for people with poor credit to choose an insurance company that's not only affordable, but also responsive to its policyholders in terms of billing, payment and claims issues. The results of the current J.D. Power U.S. Auto Insurance Study should help steer these car buyers owners in the right direction.
One more tip: At Auto Credit Express we match car buyers who have experienced credit problems with those dealers who can offer them a good chance for bad credit auto financing.
So if you're prepared to reestablish your car credit, you can begin the process right now by filling out our online car loan application.