As auto insurance companies take a hit amid surging prices, Amica stays strong

PROVIDENCE – Auto insurance companies have taken a hit when it comes to customer satisfaction, yet Amica Mutual Insurance Co. fared better than most, according to J.D. Power’s 2022 U.S. Insurance Shopping Study.

While overall customer satisfaction scores among auto insurers plunged, down an average of 6 points on a 1,000-point scale compared with a year ago, Lincoln-based Amica had the third-highest score among midsized auto insurers.

Amica’s score of 874 was also above the national average score of 855 for midsized auto insurers, all out of 1,000 possible points. The results are based upon responses from nearly 11,000 auto insurance customers who have asked for a quote in the last nine months.

Illinois-based State Farm Insurance ranked the highest in the “large insurers” category with a score of 885.

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Across companies, customers expressed frustration with rising costs, with many starting to shop for more-competitive policies, the study stated. Nearly two-thirds of those considering a new policy said their existing policy had gone up by 11% or more.

“A perfect storm of record-high replacement costs, increased frequency and severity of collisions, and an economic outlook that suggests this situation won’t change anytime soon is forcing a major industry disruption,” Marty Ellingsworth, executive managing director of property and casualty insurance intelligence at J.D. Power, said in a statement. “In the near term, that disruption is manifesting itself in very low customer satisfaction with price and high rates of new policy shopping. Longer term, this may be the catalyst to significant adoption of usage-based insurance, which may be the only way insurers can navigate the financial realities while still managing to engage with customers and build loyalty by meeting their specific needs.”

Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.