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Letter to the Editor

Who Pays for What?

Results from INSIGHT’s Annual Survey of P-Page Reimbursements

The results for INSIGHT’s 2007 “Who Pays for What?” survey, included in the January issue, are in. There are some surprising changes this year from the past years.

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. How-ever, an overall average of the responses is also included for comparison.

In 2006, the overall percentage for “never pay” was down to 41.9 percent from the 2005 “never pay” percentage of 43.8 percent. This year the overall “never pay” dropped again to 40.7 percent. The “sometimes pay” percentage had a decrease from 32.4 percent in 2006 to 30.1 percent this year. In 2006, the “always pay” percentage was 25.7 percent, exactly the same as it was in 2005. Although the “always pay” percentage is up to 29.2 percent this year over last year’s 25.7 percent, it still does not top the all-time high 2002 percentage of 30.3 percent.

The “always pay” percentages for Allstate, Farmers, GEICO, Nationwide, Progressive, and USAA were up. State Farm’s “always pay” percentage was down from an all time high of 48.8 percent in 2006. This year, State Farm’s “always pay” percentage is down to 41.7 percent. However, State Farm still has the highest “always pay” percentage of all the insurers.

GEICO’s and Progressive’s “always pay” percentages have increased quite considerably. In 2006, GEICO’s “always pay” percentage was only 20.5 percent. This year, it is up to 30.6 percent. Progressive’s “always pay” percentage was up from an extremely low 13.8 percent last year to 20.4 percent this year.

The “never pay” percentages have some surprises too. State Farm is the only insurer to have an increase in its “never pay” percentage. It is up from 24.6 percent in 2006 to 32.1 this year. All of the other insurance companies, on the other hand, have shown a decrease in the “never pay” category. Despite the increase, State Farm still has the lowest “never pay” percentage of all the insurers.

USAA, like the other insurers, had an increase in its “always pay” percentage from 31 percent in 2006 to 34.9 percent this year. However, USAA also had an increase in its “never pay” percentage, up to 35.1 percent from last year’s 31.6 percent.

GEICO, State Farm, and USAA are all above the overall “always pay” average. Allstate, Farmers, Nationwide, and Progressive, are all below the overall “always pay” average. Progressive came in with the lowest “always pay” percentage of 20.4 percent.

Progressive also had the highest “never pay” percentage of 51.1 percent, down from last year’s 55.3 percent though. State Farm still had the lowest “never pay” percentage of 32.1 percent, but this was up from 24.6 percent in 2006.

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 41 percent. However, this was up from last year’s rating of 38 percent. CSI ratings for Farmers and GEICO were also up.

With a decrease in the “always pay” department and an increase in the “never pay” department, State Farm’s CSI is down this year from last year’s rating of 90 percent. However, State Farm still received a CSI rating well over all of the other six insurers of 83 percent.

Last year, INSIGHT mentioned that it would be watching State Farm after the announcement of changes in its repair relationships. State Farm’s numbers may be down, but it is still winner of the Fair Play Award for 2007.

INSIGHT would like to thank all of those that participated in the “Who Pays For What Survey?” Your responses are greatly appreciated.   o

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