Five Things You Should Know about Automotive Total Loss This Year

The COVID-19 pandemic accelerated changes in the automotive industry, including increased digital adoption by drivers. Post-pandemic, drivers returned to the roads. Total loss claims have trended upward year over year since 2016, and they made up a staggering 27% of all auto claims in the first nine months of 2022. Supply chain issues persists and modern vehicles with advanced driver assistance systems require more intricate repairs. These factors all contribute to longer cycle times and higher total loss costs for insurance carriers.

Hi Marley hosted a webinar with industry experts on the in an increasingly complex total loss environment, and how can carriers continue to deliver excellent customer experiences. Discover five big takeaways below and watch the full replay on-demand for even more insights.

1. The customer experience is rapidly evolving.

Vehicles are becoming more technologically advanced, and customer preferences are skewing digital, a trend that accelerated during the pandemic.

“The new normal seems to change every other month as the economy changes, weather changes and technology changes,” said Paul Measley, Vice President and Chief Claims Officer at Plymouth Rock. “It puts pressure on the industry to be able to respond and use digital communication.”

In fact, a Hi Marley survey found that 71% of people said they would prefer to interact with a business they have an existing relationship with via text rather than phone or email.

Insurance companies are expanding their communication channels and investing more in tools that allow customers to follow along with the total loss process.

2. Setting expectations with customers is more important than ever.

From the first notice of loss, insurance carriers have the opportunity to set expectations with the customer. Being proactive and transparent with an educational approach from the start can lead to a smoother and more efficient process. On the other hand, lack of clear communication with customers can lead to misunderstandings and unrealistic expectations about outcomes.

“If you don’t set an expectation with the customer, then they will set it for you,” said Measley. “You’re kind of holding their hand as you go down this path… You have to keep them informed about what’s going on.”

After all, it might be the customer’s first total loss experience, or their first claim.

3. Communicate with customers the ways they want to communicate.

Finding out your car is a total loss can be an emotional moment. For this reason, some customers prefer to be notified that their car is a total loss via a voice call. Others prefer the convenience of texting.

Sean Harrison, Claims Director, Total Loss at Plymouth Rock uses Hi Marley to determine the best communication method for each customer. Some cases are more complex and require a phone call. Most can be resolved more quickly through texting.

“We’ve settled claims with people who work in challenging work environments where they can’t take a phone call, but they can receive a text message,” said Harrison. “We can actually use the Hi Marley platform to present all that information to them, let them know the value of the vehicle, and then they can review it on their time.”

4. Customers want to feel heard throughout the claims process, and they desire simplicity.

Customers quickly grow frustrated with having to repeat a story to adjusters throughout the claims process. Other negative experiences include customers not being able to speak with the person they thought they needed to speak to, or simply not getting a response during the process.

“One of the biggest frustrations that we see in our data is the availability of reps,” said Mark Garrett, Director, Insurance Intelligence at J.D. Power. “Can you actually get ahold of your adjuster? Can you get ahold of someone at the insurance company? We see that when people adopt texting, they have a much more positive view.”

Texting offers the entire conversation history in a single thread. And with AI-enabled features through a conversational platform like Hi Marley, customers receive automatic updates letting them know when a representative is out of the office or their claim has been transferred from one representative who specializes in automotive physical damage to another representative who specializes in vehicular total loss.

5. Customers appreciate early determination of total loss.

In the case of bad news, it’s better to deliver the information sooner rather than later.

“Studies show that carriers focused on early determinations have a big advantage in their total loss index scores, and satisfaction is higher,” Garrett notes.

As part of Plymouth Rock’s efforts to expedite early determinations, they implemented a process to triage cars, including a photo estimating platform that identifies if the car will be a total loss as early as possible.

“What we’ve seen on our customer service surveys is that customers are happier to be able to do things the way that they prefer to do them,” said Harrison, Plymouth Rock. “The partnership with Hi Marley has been invaluable to our policyholders and our teams.”

Catch the full replay of the “Reduce Friction, Lower Costs & Increase Customer Loyalty in Automotive Total Loss” webinar.