Customer satisfaction levels with the auto insurance industry are suffering due to the increasing cost of coverage, according to the J.D. Power 2019 Canada Auto Insurance Satisfaction Study.
The report said those insured in Alberta have seen the highest spike in auto insurance costs, with the average premium rising by $326, followed by those in Ontario ($311), Atlantic ($286) and Quebec ($213). The national average is a hike of $298.
“With such a dramatic increase in premiums, price sensitivity becomes an issue to which insurers should be very mindful,” said Tom Super, director of the insurance practice at J.D. Power, in a statement.
“While we have seen pockets of claims frequency begin to stabilize, carriers continue to face profitability challenges in the auto sector, especially for those carriers that lagged the market on rate action.”
The report said the Alberta Motor Association and The Co-operators share the top rank for the highest satisfaction in Alberta, each with a score of 781. For The Co-operators, this is the sixth consecutive year the company leads auto insurance customer satisfaction in the region.
“Of note is that among all four regions included in the study, customer satisfaction is lowest among drivers in Alberta, at 754 points,” said the report, which looked at Alberta, Atlantic Canada, Ontario and Quebec. B.C., Manitoba and Saskatchewan all have provincial auto insurance plans.
– Mario Toneguzzi for Calgary’s Business
The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.
