Knowing the details of the claims process may not be on your to-do list when purchasing an insurance policy, but it should. Thousands of claims are filed every year and even if you may never need to file a claim, knowing how the process works is a must for every insurance customer. A new survey has shown that customers have taken this advice seriously. The online survey of 100 insurance customers between the ages of 18 and 65 revealed that most customers were aware of the basics of a claims process, had a “smooth” claims process experience and were satisfied by the way their insurer handled the process.
Here’s more on what the survey revealed.
77 percent are satisfied with their insurer
Customer satisfaction was reported to be high by those polled even as insurers take efforts to make the claims process a smoother one for the customer. Despite high satisfaction rates, 14 percent of those surveyed said they had thoughts of switching their insurer. If you’re considering switching your insurer, it’s important to choose an insurer with a successful record of resolving claims.
56 percent had a positive experience after filing a claim
52 percent of those polled said they had a “smooth” experience while 8 percent said their experience was “absolutely wonderful”. One of the reasons for a good experience can be attributed to the fact that customers were careful about preserving their insurance documents. Over 70 percent said they had safely filed away their documents for future use.
On the flip side, about a quarter of the respondents used words like “horrible”, “delayed” and “stressful” to describe their claims experience. Insurers need to pay attention to claims processes that go beyond the stipulated time. 81 percent of the survey respondents think that a time frame of 7 days to 1 month is fair while the rest of the respondents said it could extend to 3 months, but no further. The National Association of Insurance Commissioners (NAIC) gives a few tips on how your claims process can be made easier.
74 percent had made a claim on vehicle insurance
Auto claims are the highest, the survey reveals. Maximum claims were filed for damage or loss of a vehicle, while over a third of the respondents filed a claim on their homeowner’s insurance policy. The respondents did not file any claims on their life insurance and business insurance policies.
48 percent believe their insurer is fair in issuing the claim amount
Almost half of those surveyed found that their insurance company was unbiased. Many said that if they ever needed to file a claim, they believed the insurer would be fair in giving the claim amount. Moreover, 19 percent said that they had made a claim and were satisfied. But a third of those polled had doubts about the manner in which their insurance company issued claim amounts. So, to help you get a fair compensation from your insurance company, you may look for a third party public adjuster to estimate the amount of your insurance claim. You may search online for a public adjuster before filing a claim.
55 percent know their premiums will rise after filing a claim
One of the biggest side-effects of filing a claim are the premiums rise that follows. 14 percent of those polled said they had to pay higher premiums after a claim with only a fraction saying that their premiums have remained the same. Bankrate lists some of the claims that may lead to an increase in insurance rates.
Overall, the survey gives a satisfactory picture of the insurance claims process for a customer. But, here’s a shocker.
More than half of those surveyed (52 percent) said that the claims process wasn’t explained to them at the time of purchasing the policy. Insurers have a task at hand to carefully explain the claims process to customers if there is to be continued improvement in the way the claims process works.
The explaining of the claims process to an insurance customer is one of the reasons for a higher customer satisfaction rate, says the 2013 U.S. Auto Claims Satisfaction Study by J.D. Power with the Auto Club of Southern California Insurance Group, Auto-Owners Insurance and The Hartford being ranked as the top three insurers with high customer satisfaction scores. Customers, along with discounts, make sure you ask your insurer for a specialist claims representative who will guide you through the entire claims process. Only then sign on the dotted line.