Nearly Half of Renters Lack Insurance | South Salem NY Real Estate

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” (learn more in the review of SuperMoney).

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.

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