How does J.D. Power rank products and services?

J.D. Power is a consumer insights and analytics company that provides valuable data on various industries, including insurance, mortgage and banking, automotive, and healthcare. While its ratings are frequently mentioned in car commercials, J.D. Power's customer satisfaction surveys offer crucial insights into auto, homeowners, life, commercial, and other insurance products. These surveys are utilized by CNBC Select to evaluate providers.

What is J.D. Power?

Since its inception in 1968, J.D. Power has emerged as a prominent data analytics firm, conducting independent studies in various fields such as insurance, automobiles, mortgages, banking and investing, healthcare, and travel. The company's modest beginnings at the kitchen table of J.D. "Dave" Power III grew into national recognition in the 1970s when the Wall Street Journal cited its survey in an article about issues with Mazda's engines. In 1984, Subaru became the first automaker to advertise its J.D. Power rankings in a Super Bowl commercial. Today, J.D. Power is a leading provider of consumer insights across multiple markets.

In 2016, J.D. Power was acquired by Hong Kong's XIO Group. Three years later, the company was sold to private equity firm Thoma Bravo and relocated its headquarters to Troy, Michigan.

What types of insurance does J.D. Power rate?

J.D. Power releases yearly studies on various insurance categories, such as auto, home, renters, life, and commercial insurance.

The top insurers are typically determined based on customer experience with various factors, including pricing, product options, trust, price, ease of doing business, problem resolution, employee interactions, and digital channels.

In addition to evaluating the claims process, surveys may also gather information on the ease of filing and resolving a claim, the time it took to reach a resolution, and the perceived fairness of the settlement.

J.D. Power auto insurance surveys

J.D. Power conducts two annual auto insurance surveys: the U.S. Auto Insurance Study, which ranks providers based on customer satisfaction, and regional rankings due to insurers' availability. In 2024, the study was based on over 40,000 driver responses from August 2023 to April 2024. The top regional companies were determined.

The Auto Club of Southern California, Shelter, Auto-Owners, Erie Insurance, Amica, Travelers, Erie Insurance, PEMCO Insurance, Alfa Insurance, California State Automobile Association, and Texas Farm Bureau were ranked in the J.D. Power study on auto insurance in 11 regions. However, USAA, which is only available to active-duty service members, veterans, and their families, was not included in the ranking. In the study, USAA scored significantly higher than any other provider in all 11 regions. Nationwide came in first in the standalone survey ranking companies that offer usage-based insurance, with 842 points out of 1,000. J.D. Power also ranked insurance companies on the shopping experience and their digital platforms, with a study on the claims process that surveys customers about their insurer's performance with.

• Ease of filing a claim
• Ease of resolving a claim
• Fairness of the settlement
• Trust
• People
• Communication
• Timing
• Digital channels

In the 2024 claims satisfaction survey, NJM Insurance received the highest score of 782 out of 1,000, while Amica came in second with a score of 746. Erie, Nationwide, and Liberty Mutual followed closely behind with scores of 733, 728, and 717, respectively.

J.D. Power homeowners insurance surveys

J.D. Power releases two annual reports on homeowners insurance, evaluating customer satisfaction through surveys that consider factors such as trust, coverage options, pricing, digital channels, ease of doing business, people, and problem resolution.

In 2024, Chubb finished first with 688 out of 1,000 points. AIG (680), Amica (679), Erie (674), and the Automobile Club of Southern California (671) followed closely behind in the top five positions.

Erie was ranked first in renters insurance by the study, with a score of 713 out of 1,000, followed closely by Amica, Lemonade, State Farm, and the Automobile Club of Southern California, all with scores of 695, 682, 679, and 674, respectively.

The company evaluates customer satisfaction with insurers' property claims process, including their settlement, claim servicing, first notice of loss, estimation process, and repair process. Amica received the highest score of 906, while AIG, Erie, Farmers, and American Family followed with scores of 889, 888, 883, and 877, respectively.

J.D. Power life insurance surveys

The J.D. Power U.S. Individual Life Insurance Study evaluates companies based on factors such as price, product variety, communication, interaction, and public statements.

In 2024, State Farm was the highest-rated provider with a score of 699 out of 1,000 points, while Guardian came in second with 685 points. MassMutual, Northwestern Mutual, and Nationwide followed closely behind with scores of 673, 670, and 666, respectively.

Why are J.D. Power rankings important?

J.D. Power is notable for its extensive sample sizes and impartial approach. The company claims to survey over 5 million Americans annually for its research.

J.D. Power's primary source of revenue is from corporations that hire it for internal data analysis, but these clients have no influence over commissioned studies. They can pay a fee to reference their rankings in marketing and advertising materials.

J.D. Powers scores are regularly included in CNBC Select's customer satisfaction considerations, along with data from other organizations such as the Better Business Bureau and the National Association of Insurance Commissioners.

Why trust CNBC Select?

Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each insurance article we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of insurance products. At CNBC Select, we are committed to maintaining our journalistic standards and ethics, even when we earn a commission from our affiliate partners on many offers and links.

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