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February 2003 Issue of INSIGHT
Who Pays for What?
Insurer "always pay" P-page line items are down
The results for INSIGHT's 2003 "Who Pays for What?" survey, included in the January issue, are in. The number of surveys returned this year almost doubled that of last year, once again, breaking an INSIGHT record.
The data from the returned surveys has been compiled into charts separated by the seven major insurance companies. The charts show payment for 36 of the most common non-included P-page items. However, an overall average of the responses is also included for comparison.
In 2002, the "never pay" and "sometimes pay" were both down, and the "always pay" percentage was up almost 9 percent. This year, however, is just the opposite. The overall percentage for "never pay" is up from last year's 42 percent to almost 46 percent. The "sometimes pay" percentage is up to 30.4 percent from last year's 27.6 percent. In 2002, the "always pay" percentage of 30.3 percent was higher than any other year since INSIGHT began the "Who Pays for What?" survey. This year the overall "always pay" percentages are down 21.1 percent.
The "always pay" percentages for Farmers, GEICO, Nationwide, and Progressive are down almost 30 percent from last year. However, much like the overall statistics, these insurers had higher "always pay" percentages for 2002 than any other year ever. In fact, Farmers, GEICO, and Progressive had the largest increases in 2002 for "always pay." Farmers' "always pay" percentages in 2002 were 35 percent, up from 22 percent in 2001.
Farmers, however, along with State Farm and USAA still have higher "always pay" percentages than the overall average of 23.9 percent. In fact, State Farm's "always pay" percentage of 40.7 percent is almost double that of the overall average.
Allstate, GEICO, Nationwide, and Progressive are all below the overall average.
Progressive came in with the lowest "always pay" percentage of 15.9 percent and the highest "never pay" percentage of 54.3 percent. Unsurprisingly, State Farm had the lowest "never pay" percentage of 33.8 percent. USAA, with 38.4 percent, and Farmers, with 43.6 percent, were the only other two insurers to fall below the overall "never pay" average of 45.7 percent.
As would be expected from these statistics, the always and never pay percentages are in direct correlation with CSI scores. Progressive, with the highest "never pay" percentages and the lowest "always pay" percentages, had the lowest CSI rating of 45 percent. With numbers like this, Progressive is definitely the winner of INSIGHT's 2003 Penny Pincher Award.
Following the same pattern, with an "always pay" percentage over 40 percent and almost double the overall average, State Farm received a CSI rating well over all of the other six insurers. In fact, with an 89 percent CSI rating, State Farm is number one for the fourth year in a row, and once again, the recipient of INSIGHT's Fair Player Award.
Farmers and USAA switched places this year for second and third highest CSI ratings. In 2002, Farmers received a 74 percent CSI score, landing the insurer in second place after State Farm. This year, Farmers' CSI rating dropped to 63 percent making the insurer third highest in CSI. However, the 15 percent drop in Farmers' CSI makes it the least improved for 2003. USAA came in third place in 2002, with a CSI rating of 68 percent. This year, USAA's CSI score increased only one percent, but enough to land the insurer in second place.
Overall, CSI ratings are down five percent this year. State Farm and USAA are the only insurers that received higher CSI scores this year versus last year. Both insurers' CSI ratings increased by one percent. Additionally, State Farm and USAA are also the only two insurers this year that topped all of their previous CSI scores since 2000. The two were able to increase their CSI ratings despite the drop in "always pay" percentages.
The overall five percent decrease in CSI ratings directly relates to the overall decrease in "always pay" percentages. The "always pay" percentage is down 21.1 percent overall from 30.3 percent in 2002 to 23.9 percent in 2003. In fact, every insurer this year has a decreased "always pay" percentage. Keep in mind, however, the "always pay" numbers for 2002 were exceptionally high.
Fair Player Award: State Farm- 4 years in a row
Penny Pincher Award: Progressive
Most Improved Award: USAA (by only 1 percent)
Most Frequently Paid P-page Items
Least Frequently Paid P-page Items
Insurers with Above Average ALWAYS Paid
Insurers with Above Average NEVER Paid
Have a comment about this article? Send Email to Charles Baker, INSIGHT's Publisher
©2003 Collision Repair Industry INSIGHT