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Some 46 percent of renters are uninsured even though renters are more satisfied with their insurance than homeowners, according to a new JD Powers study released today.

Nearly Half of Renters Lack Insurance

Some 46 percent of renters are uninsured even though renters are more satisfied with their insurance than homeowners, according to a new JD Powers study released today.

Price is the leading driver of the satisfaction gap: price satisfaction is a significant 45 points higher among renters than among homeowners. Satisfaction with insurers is higher among renters than among homeowners (809 vs. 787, respectively, on a 1,000-point scale), the study found.

State Farm captures the largest share of the renter insurance market (26%), followed by Allstate (12%) and USAA (10%).

Customer retention rates with their current insurer are higher among renters who bundle an auto policy (91%) compared to renters who do not bundle an auto policy (67%).

“Many insurance agents focus their time selling high-dollar products, such as auto and homeowners, with higher commissions instead of the average $200 per year renters policy,” said Jeremy Bowler, senior director of the global insurance practice at J.D. Power. “This is shortsighted because agents who satisfy the large renter population today are more likely to retain and service their growing household insurance needs over time.”

Rankings
Overall Customer Satisfaction Index Scores J.D. Power.com Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
Homeowners Segment
Amica Mutual

842

5

State Farm

813

4

Auto-Owners Insurance

812

4

Erie Insurance

811

4

Automobile Club of Southern California

808

4

Encompass

798

4

American Family

797

4

Progressive

796

4

COUNTRY

795

3

Allstate

789

3

GEICO

789

3

The Hartford

787

3

Homeowners Average

787

3

NCNU Insurance Exchange

786

3

Nationwide

780

3

MetLife

778

3

Safeco

778

3

Automobile Club Group

776

3

CHUBB

768

2

The Hanover

766

2

Farmers

763

2

Liberty Mutual

762

2

Travelers

756

2

__________________________
USAA*

894

5

*USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings.
Homeowners Segment: Included in the study but not award-eligible due to localized availability and/or not meeting minimum sample requirements are Alfa Insurance, Allied, Cincinnati Insurance, Fireman’s Fund, Homesite, Mercury, North Carolina Farm Bureau, Shelter and Tennessee Farm Bureau.
Renters Segment
Nationwide

823

5

American Family

817

5

Automobile Club of Southern California

814

3

State Farm

811

3

Renters Average

809

3

Allstate

807

3

Progressive

799

3

GEICO

794

2

Liberty Mutual

773

2

Farmers

768

2

Travelers

752

2

__________________________
USAA*

901

5

*USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings.
Renters Segment: Included in the study but not ranked due to not meeting minimum sample requirements are Amica Mutual, Automobile Club Group, Erie Insurance, MetLife, NCNU Insurance Exchange, Safeco and The Hartford.

Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest

The 2013 U.S. Household Insurance and Bundling Study is based on 21,167 responses from customers who may have the following insurance product lines: homeowners; renters; individual life insurance; recreational vehicle; personal liability umbrella; and secondary residence. The study was fielded from June 10, 2013, through July 12, 2013. The study examines overall customer satisfaction in each of these product lines; however, the study only ranks performance in two personal property insurance segments-homeowners and renters. Both index scores are comprised of five factors: interaction; policy offerings; price; billing and payment; and claims.

http://rt.prnewswire.com/rt.gif?NewsItemId=LA88304&Transmission_Id=201309301820PR_NEWS_USPR_____LA88304A&DateId=20130930

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