Garry Smith
Clinical Associate Professor of Marketing, G. Brint Ryan College of Business, University of North Texas
Which do you think is a better indicator of a good car insurance company: low rates or good customer reviews?
I would focus on the reviews, particularly on the quality and responsiveness of customer service. As with all reviews, you want to ensure there is a rather large number that appears to be credible.
Do you think 24/7 live customer service should be a requirement to be among the best car insurance companies?
Yes. It is never convenient to have to call in about an automobile accident you are involved in and discover what next steps are required by your insurer. For the premiums charged, it does not seem unreasonable to expect at least a national 24/7 live customer service agent to be available. For less experienced drivers, the guidance can be very valuable in avoiding costly missteps with the other party's insurance company.
Is it fair to say that the 10 largest car insurance companies are the best for most drivers?
Not really. There really does not seem to be a correlation between the size in terms of market share and customer satisfaction. Some of the 10 largest are exemplary, some do not offer quality service but may have great advertising campaigns. As a generalization, I would say that the size of the insurer is probably not the best indicator of quality.
What advice would you give people who are trying to choose a car insurance company?
A person must decide what is most important to them in terms of what they value. If it is simply money, it may be affordability. If it is one's time, it may be the quality of customer service in terms of responsiveness, helpfulness, the reasonableness of claim payment offering, and timeliness. If it is simple, combined with some financial incentives, it could be the availability of discounts for bundling coverage or not filing any claims. If it is a desire to simply have business taken care of professionally, it may be the overall quality of customer service. Many different variables may come into play. In general, if one is simply chasing the cheapest premium, be prepared for low settlement offers, delays in handling claims, and lack of responsiveness.
How influential do you think TV advertisements are when people are choosing their car insurance provider?
Personally, I think they are quite influential. It seems that in the past decade or so that insurance is now positioned, in many advertisements by some of the largest insurers, as a humorous product. The size of those insurers is indicative of some degree of success in attracting customers. However, the need for an insurer when a claim is necessary is never a funny situation. Consumers need to think carefully about what drives their choice of insurers.