Voice of the Policyholder Survey: How Carriers Can Improve the Total Loss Process

Auto total losses have the lengthiest cycle times of all claim types—averaging 20 days from the first notice of loss to vehicle release. An auto total loss claim involves several steps that require multiple contacts and touchpoints throughout, adding to its complexity.

To better understand how policyholders navigate this complex and unfamiliar process, Hi Marley commissioned a survey of 800 US policyholders who experienced an auto total loss claim in the past three years. The results revealed key insights into how carriers can improve the auto total loss claim process and policyholder satisfaction.

Emotional Impact of a Total Loss on a Policyholder

A total loss is stressful for a policyholder. They don’t know what to expect and often wonder what to do next, unclear on when they will receive a check or can start shopping for a new car.

After learning their vehicle was totaled, survey respondents reported feeling sad (55 percent), followed by frustrated (48 percent), overwhelmed (37 percent), shocked (32 percent), and angry (30 percent).

As the claim progressed, confusion (25 percent) replaced initial shock, while many continued to feel sadness (32 percent) and anger (28 percent). An increasing number of policyholders also reported feeling overwhelmed (41 percent) and frustrated (54 percent).

Long Wait Times and Inefficient Processes Lead to Poor Experiences

The survey showed that 66 percent of respondents said the claim resolution took as long or longer than expected. And 55 percent felt their insurer could have kept them better informed of their claim’s status throughout the process. Feelings of frustration increased to 68 percent if the total loss claim took longer than a month to resolve. These findings align with Hi Marley’s earlier study of 25,000 customer satisfaction surveys, which found responsiveness and fast resolution are crucial drivers for customer satisfaction.

Other inefficiencies also contributed to poor claims experiences, including 60 percent of respondents repeating details of their incident two–to–three or more times and 75 percent working with two-to-three or more people to resolve their claim. Hi Marley’s previous Voice of the Policyholder survey revealed that declines in satisfaction directly correlate with the number of times policyholders repeat their story and the number of people they need to engage throughout the claim process.

Five Key Trends Among the Kind of Support Policyholders Want During a Total Loss Claim  

Forty-four percent of policyholders were less than satisfied with their insurer’s assistance during the claims process. When policyholders described the kind of support that would have eased confusion and frustration, five key trends emerged:

1. Clarity Around Whom to Speak To
2. Clearer Process Guidelines
3. Proactive Communication
4. Help and Guidance Dealing with Other Parties
5. Empathy and Personal Support

Total loss incidents are devastating for policyholders. The results of this study provided insight into opportunities for carriers to enhance customer satisfaction in the claims process. Hi Marley’s Total Loss Assist™ can help address these needs and improve the total loss claims experience by streamlining communication, providing process clarity, and enhancing carrier workflow efficiencies.

To learn more about this study and the benefits of Total Loss Assist, check out our latest ebook.