Insurance Bundling Leads to Lower Customer Satisfaction

June 30, 2011 No Comments »
Insurance Bundling Leads to Lower Customer Satisfaction

You may have heard of “insurance bundling,” where auto and homeowner’s insurance policies (or another type of insurance) are written by the same company in order to save money on insurance premium.

(See: Progressive bundling for more on that.)

Well, while it might save some people a few bucks, it doesn’t seem to be creating too many happy customers, according to a newly released survey from J.D. Power and Associates.

The company noted that satisfaction with price is higher among unbundled customers than among bundled customers.

More Than Half Bundle Insurance Policies

Per the survey, 58 percent of customers bundle their auto and homeowners policies with the same insurer.

And the trend is rising, with the bundling of any additional products with auto insurance increasing from 70 percent in 2010 to 77 percent this year.

This explains why the multi-policy discount is one of the most prevalent auto insurance discounts reported by customers, alongside discounts for being a safe driver.

Meanwhile, frills like accident forgiveness, ticket forgiveness, and insurance claims-free discounts, which are less common in the marketplace, create more satisfaction.

[Why did my insurance rate go up, no tickets or accidents?]

Amica Mutual Best for 12th Consecutive Year

Finally, Amica Mutual was rated the top auto insurance company for the 12th straight year in terms of customer satisfaction.

It’s unclear how much bundling they do, but whatever it is they do, it seems to be working really, really well.

It’ll be interesting to see if any other auto insurance company can knock them off their perch.

At this point, it appears doubtful at best.

Tip: How to lower your car insurance rate.

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