One in five consumers switch insurers after first accident

About 20% of customers consider switching insurance companies after experiencing the collision claim process, according to a new U.S. study.

J.D. Power and Associates’ 2006 Collision Repair Satisfaction Study found that 7% of customers chose not to file a claim with their insurer after their most recent collision.

And yet, although more than 30% of auto insurance customers choose not to file a claim after a collision because they think their premium will increase, 62% of respondents who did file a claim more than six months prior to being surveyed indicate their premium has not been re-adjusted by their insurer, the J.D. Power and Associates study found.

Jeremy Bowler, senior director of the firm’s insurance practice, believes the dissatisfaction arises out of the fact that a collision marks the first time a client becomes truly familiar with their policy. “Misconceptions about what is covered by the auto policy, or what to expect during the claim and repair processes can lead to significantly lower customer satisfaction,” Bowler said in a statement.