Market Overview

Auto Insurance Claims in Illinois: Client Satisfaction with Nonstandard Insurers May Not Match the Higher Satisfaction Rate Found by JD Power's Study


Insurance Navy comments on JD Power's recent research finding that despite higher cost for clients, satisfaction is rating higher among certain standard and preferred insurers. Insurance Navy says that this may not be true for the auto insurance claims in Illinois particularly with regard to substandard insurers; despite the fact that new laws were enacted to improve claim services in Illinois.

Midlothian, Illinois (PRWEB) November 04, 2012

A new study about auto insurance claims released this week by JD Power,, indicated that despite the fact that clients are paying extra in 2012 compared to 2011; customer satisfaction with regard to claims is getting better during the same time. The average out-of-pocket costs that clients paid in 2012 was $403, or $26 more than the 2011 level. Out of pocket costs included things such as claimants' deductible plus any additional costs incurred, similar to rental car or repair costs. For the same period of time, the overall claim satisfaction level has improved drastically to 852 index points, a 6-point improvement from its level in 2011, according to the study.

Ranking in the top 5 places were Auto-Owners Insurance which has been ranking in the first position for the past 5 consecutive years, with a score of 887 (on a 1,000-point scale). Then came Amica Mutual and Erie Insurance in a tie with 876. AAA of Southern California and COUNTRY in a tie at 874 points.

Fadi Snenneh of Insurance Navy said that "the results of the study is an indication of a trend among certain standard and preferred carriers to compete based on quality of claim services. Things are different in the Chicago area where there are lots of non standard Illinois car insurance companies which offer low cost auto insurance, thus competing based on price, not quality of service."

In February 2011, Illinois Senate discussed a proposal SB0152 which proposed that every auto insurance company licensed in Illinois shall be a signor on the Nationwide Inter-Company Arbitration Agreement which would force insurers to accept settlement by arbitrators. However when the proposal was enacted to become Public Act 097-0513 effective earlier this year, the new legislation specifically stated that "nothing in this [Act] shall be interpreted to require an insurer to become a member of any organization or to sign the Nationwide Inter-Company Arbitration Agreement."

Snenneh said that despite the fact that "the new Illinois law did not make it mandatory for insurers to sign the Agreement, that was a provision to force arbitration for physical damage not exceeding $2,500. This provision has made it easier for many small claimant to get better claim services from non-standard car insurance companies in Illinois."


Insurance Navy Agency is a principal provider of car insurance, Illinois SR22 insurance, and business insurance rates. Powered by its representations of several carriers, the Agency manages to provide competitive quotes to Illinois, Indiana and Wisconsin residents. Insurance Navy has several locations in the Chicago area to assist its clients.


Name: Mr. Snenneh, Fadi
InsuranceNavy Agency
Address: 14653 South Cicero Avenue, Midlothian, IL 60445
Phone: (708) 489-1200

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