Usage-based auto insurance is booming, at least in the United States. This is the result of the new report by JD Power, the consumer data and analysis company, according to which the consumer liability insurance made in the USA is registering a record number of adhesions since 2016, so much so that it represents 16% of all insurances car.
According to the study, insurance customers are turning to usage-based motor liability as they are unhappy with the price hikes of regular policies. The US auto insurance study was conducted between January and April 2022 examining data from five key areas : billing process and policy information, claims, interaction, policy offerings and price.
Inform in advance about increases
Not surprisingly, research shows that the insurers most active in informing customers about price increases are also the ones best able to mitigate their negative effects . And again not by chance, 59% of customers who, in the last year, have undergone a price increase have been informed in advance : we are talking about 15% more than in 2016, showing a 37 percentage point higher satisfaction. Furthermore, according to the research, it appears that a phone call is the most effective way to communicate the price increase .
Difficult situation but not impossible
“The current situation is difficult for auto insurers, but it is not impossible, in the current inflationary environment, to build customer satisfaction and loyalty – explains Robert Lajdziak, director of insurance intelligence at JD Power – There are two key points: the first is that if insurers are transparent and inform customers in advance of price increases, they can mitigate the negative effects of the increase itself”.
All-time high for consumer liability insurance
“Secondly – adds Lajdziak – use-based insurance is growing rapidly, with the number of customers reaching an all-time high in adopting these programs and who, thanks to their experience, have seen significant increases in overall customer satisfaction levels.