How do JD Power Auto Insurance Rankings Work?

Last Updated on April 6, 2020

JD Power is a consumer analytics company that conducts intensive research to help consumers make better purchasing decisions. One of the many industries they look at is the auto insurance industry. They assess car insurance companies on a number of different factors and come up with an overall rating. This can help consumers decide which insurance company is going to provide them with the best overall value. Here’s how JD Power’s auto insurance rankings work and how you can use them to decide which insurer is best for you.

About JD Power

JD Power was founded in California in 1968. The company began by focusing on the auto industry, conducting consumer studies for Toyota. The company quickly expanded, offering consumer reports on other aspects of the industry like insurance, dealerships, and used car sales. These reports were not only helpful for consumers who were shopping around – but they were also helpful for the companies themselves because they got an honest look at what they needed to work on in order to succeed with their customers. Companies today take their JD Power rankings very seriously and often use them as a selling point for consumers. JD Power has now expanded its services to Europe and Asia and offers consumer reporting for many different industries.

What Are JD Power’s Auto Insurance Rankings?

When you visit the JD Power website, you’ll find a huge range of studies that you can browse through. There are a wide variety of categories and sub-categories of studies to choose from. In the car insurance category, there are three different types of studies. There is a nationwide study, a state-by-state study, and the auto claims satisfaction study.

In each study, companies are given an overall rating out of 5, as well as ratings on a number of different factors. These are called Power Circle Ratings. These ratings make it easy for consumers to get an idea of a company’s reputation at a glance. For example, within the auto insurance study, companies are rated on factors like price, policy offerings, website, customer service, and more. In the auto claims satisfaction study, they are rated on various aspects of the claims process, from the initial filing to payout and everything in between. Within the studies, JD Power also gives awards to companies that have performed exceptionally well and offer great value for customers.

How Does JD Power Conduct Its Research?

JD Power prides themselves on their research process. When studying a product, they only talk to consumers who actually own that product to ensure accurate results. They conduct their surveys via e-mail, telephone, and mail. There are a number of different factors that JD Power looks at to create their overall aggregate ratings. Because these factors are assessed holistically, a good rating does not mean that a product is perfect in every aspect. Instead, it means that the overall consumer experience is a good one.

What Factors Does JD Power Look at During Their Studies?

Every study that JD Power conducts is slightly different, but their goal is the same – to help consumers make informed decisions while shopping, and to help companies improve their product offerings. There are some factors that are generally considered in every study. Here are some of the factors that JD Power looks at during its insurance research process.

• Pricing. During each study, JD Power collects data from consumers to learn how much they are paying for auto insurance. They can then assess the overall value for money that each insurance company is offering. During the study, JD Power also assesses whether a customer’s rates have changed over the years. If a company frequently raises their insurance rates for existing customers, it negatively affects the financial value that they offer.
• Purchasing experience. This is a very important factor in the overall rating for any insurance company, as this is usually the first experience that customers have with the insurer. There are a number of ways that consumers can purchase an insurance policy – through an agent (in person), over the phone, or via a website. This includes the ease of getting a quote, the process of signing up and finalizing the policy, and the overall customer service experience.
• Policy options available. Some insurance companies have a wide variety of coverage types, which allows consumers to really personalize their insurance to suit their needs. Other companies only have a few different coverage options available, limiting the amount of protection that customers can have while out on the road.
• Claims experience. JD Power conducts a specific study that focuses on the experience of filing a claim with a number of different insurance companies. They ask customers to rate each step of their experience, from initially notifying the insurance company, to repairing the car and getting a rental if needed, to the final payout. Customers rate their experience with the insurance company’s customer service team, as well as the efficiency of the claims and the overall extent of the coverage.

JD Power is consistently developing new studies to help consumers learn more about the insurance products they are buying. By learning more about the experiences of real consumers, they hold companies accountable for the quality of their products and help consumers find the best options for their needs.

How Can I Use the JD Power Ratings When Shopping for Insurance?

If you’re interested in a particular insurance company, it can be helpful to look at their JD Power rating before you make a purchase. Since JD Power rates each company on a number of different factors, it can give you a better idea of what to expect before committing to a policy. If you’re unsure where to start when looking for an insurance company, you can also browse through the JD Power site and look at their top-ranked insurers. They have insurers sorted by state, so you can find an option that provides reliable coverage in your area.