NEW YORK ( MainStreet)--Consumers are growing weary of unexpected and unexplained rate hikes in auto insurance, as they face an average premium increase of $153 in 2013, a 35% increase from last year. As a result, customer satisfaction with auto insurance companies has reversed course and declined from an all-time high in 2012, according to a recent J.D. Power 2013 U.S. Auto Insurance Study. Consumers are most dissatisfied when rate hikes are unexplained and issued without prior notice, making them more likely to switch their policy to another insurer. Only 16% of those surveyed indicated that they had a discussion with their insurer regarding a potential change in their coverage after a premium increase.
Among the five factors, price satisfaction is lowest at 716 -- more than 100 points lower than the average scores for interaction and claims. --Written by Hal M. Bundrick for MainStreet