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Letter to the Editor

February 2004 Issue

Who Pays for What?

No Big Changes in 2003

The results for INSIGHT's 2004 "Who Pays for What?" survey, included in the January issue, are in. Once again, the number of surveys returned this year topped that of last year.

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 2003, the overall percentage for "never pay" was up from the previous year to almost 46 percent. This year the overall "never pay" dropped to 43 percent.

The "sometimes pay" percentage had a very slight decrease from 30.4 percent in 2003 to 30.3 percent this year.

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. Although the "always pay" percentage is up to 26.6 percent this year over last year's 23.9 percent, it still does not top the all-time high 2002 percentage.

The "always pay" percentages for Allstate, GEICO, Nationwide, Progressive, State Farm, and USAA were up. State Farm's was higher this year than any other year, with a 48.3 percent "always pay" percentage. This is almost a 19 percent increase over last year.

GEICO's "always pay" percentage of 24.3 percent is about half of State Farm's. However, GEICO's percentage is also up almost 19 percent over last year.

Nationwide's "always pay" percentage of 18.7 percent was lower in 2003 than any other year. This year, Nationwide's "always pay" percentage is up 16 percent to 21.7 percent.

Progressive's "always pay" percentage was up 15.7 percent this year. However, Progressive's "always pay" percentage remains the lowest of all insurers at 18.4 percent.

Farmers was the only company with a decrease in its "always pay" percentage, down 3.2 percent from last year with a 24.4 percent "always pay" percentage.

Allstate, Farmers, GEICO, Nationwide, and Progressive, are all below the overall "always pay" average. Progressive came in with the lowest "always pay" percentage of 18.4 percent.

State Farm and USAA both had above average "always pay" percentages of 48.3 and 28.8 percent respectively. Since INSIGHT began the "Who Pays For What?" survey in 1997, State Farm's "always pay" percentage has increased 135.6 percent from 20.5 percent in 1997 to 48.3 percent in 2004.

Progressive had the highest "never pay" percentage of 55.3 percent.

Unsurprisingly, State Farm had the lowest "never pay" percentage of 25.9 percent. USAA, with 37 percent, and Farmers, with 42.7 percent, were the only other two insurers to fall below the overall "never pay" average of 43 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.

Following the same pattern, with an "always pay" percentage of 48.3 percent, 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 fifth year in a row.

Farmers' CSI score improved by 2 percent this year from 63 percent in 2003 to 64 percent this year. This was the only CSI change. All of the other insurers' CSI scores remained the same as last year. o

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