Happy Auto Insurance Customers = Increased Renewal Rates!

Auto insurance is an integral supporting component of the auto industry. To have happy and content auto insurance customers with high commitment levels is perhaps the best way to grow an auto insurance business and rise above competition. This is so because satisfied customers make more recommendations, are more likely to renew their policies, and at the same time are much less sensitive to pricing offers from competitors to win them away from you.

The findings have come to light from the National Auto Insurance StudySM by JD Power. The study set out to measure customer satisfaction with auto insurance companies across five factors. In order of importance, they are: interaction, policy offerings, billing and payment, price and claims.

The Results:

Switching Insurers

The study finds that 59 percent of customers with high commitment report they would not switch their auto insurer for any price, compared with only 9 percent of low-commitment customers who say the same.

Insurance Renewal

Auto insurers with highly satisfied customers have a renewal rate that is 9 percentage points higher, on average, than insurers whose customers report low levels of satisfaction.

Policy renewals are also much more likely among customers with high commitment levels, as 90 percent report they “definitely will” renew their auto insurance policy, compared with only 14 percent of low-commitment customers who indicate that they “definitely will” renew.

Recommendations to friends and family

Customers with low commitment levels are also much less likely to provide recommendations to friends and family (9%) compared with highly committed customers (81%). Additionally, the average number of recommendations made by customers with low commitment (1.4) is notably lower than the number of recommendations made by high-commitment customers (7.7).

The Companies' Interaction With Customers

While all factors of the auto insurance experience are important, insurers can make the greatest impact on satisfaction by focusing on and increasing customer interactions.

The experts opined that proactive, outbound communications significantly improve the customer experience. And the more engaged auto insurers are, the more satisfied customers become. Proactive measures could include resolving issues on the first contact, offering annual policy reviews, providing online access to policy information and increasing customer awareness of policy discounts, and would enhance the overall experience.

Why delighting customers is important?

First, Retaining customers is critical because in the auto insurance industry even one-percent shift in total market share can amount to a $1.6 billion dollar shift in premiums.

Second, there's intense competition in the marketplace and the consistent improvement by carriers over time signal that insurance companies has shown that simply satisfying customers isn't enough to remain competitive. Since customer expectations evolve continuously companies need to keep on improving to stay abreast with customer expectations.

The following are the top 10 companies with the best Customer Satisfaction Index scores:

Over the years the overall satisfaction across the auto insurance industry has increased. It is up from 781 points on a 1,000-point scale in 2007 to 787 in 2008. Additionally, satisfaction has increased steadily during the past five years, improving by 25 points since 2004. In 2008, eight of the 27 profiled insurance carriers demonstrate significant year-over-year-improvements in customer satisfaction.

Another, related study conducted by the Insurance Research Council (IRC), found that auto claims higher for lighter vehicles than heavier. The auto industry has recently seen a surge in demand for lighter automobiles due to the increasing gas prices. And now this study finds that the auto injury claim costs appear to be on the rise too. Reportedly, the auto injury claims are about 14.3 percent higher for passengers commuting by lighter-weight vehicles than for the heavier ones. In fact, experts also believe that that higher average claim costs associated with lighter vehicles have the potential to offset, to some extent, whatever beneficial effects might occur from less driving.
On the whole the automotive insurance market is quite competitive, and insurance companies would need to be innovative and proactive to remain competitive.

Meanwhile, if you'd like to thrill yourself in November this year, then the LA Auto Show 2008 is the exhibition to visit.

Auto Parts: Top 9 Benefits Of Buying Online

Shopping for auto parts can be challenging because, no one brick 'n' mortar store can offer you the best deal on all automotive parts. But shopping online can often get you the quality at a price that's unbeatable.

The following are some of best benefits you can derive from buying auto parts online.

1. It's Highly Convenient: You simply don't need to go out shopping for auto parts, no need to drive your car to a shop or shops, no queues, no waiting, no refueling, or so many things that can tire you unnecessarily. Just hop on in front of your system and you've reached the market.

2. Your Options Galore: At an online auto parts marketplace, there's an abundance of suppliers offering millions of products. Hence the chances of your finding exactly what you're looking for and of the quality you desire, are much higher. Compare this to a visit to a brick 'n' mortar auto parts store which can only house as much variety of products as the floor space warrants.

3. You Maintain Your Peace Of Mind: At a typical brick 'n' mortar store, some salespeople might seem to act pushy at times, and it can very disturbing. Online shopping saves you the trouble of dealing of such an undesirable experience.

4. Get Factual Information About Your Supplier: A trustworthy supplier isn't only about impressive talking skills or frequent smiles. What you need to know is the background of the seller, and how much experience they have, or what do others who've bought from the seller say about him? Several online buying platforms are equipped with either systems to allow you to sift through the responses of other people. And/or they have some kind of a certification program, wherein those sellers who meet a specific quality criteria can be easily identified.

5. You Can Read Reviews: Reviews give you a clearer vision about the quality of products, what to look for? which products to avoid? etc. With online shops you have the option to surf through reviews of professionals, as well as read what customers who bought the products had to say.

6. The Markets Are Open 24 x 7 x 365 or 6!: You don't need to figure out the working hours of any online store, or wait till they open, or hurry before they close. It's just you and an online connection that you need. So if you're one of those nocturnal beings then an online store is just the right place for you.

7. Greater Reach - Distances Don't Matter: Who said that the automobile industry was a local phenomenon? You can place an order from one part of the world to a seller located at the opposite end of the globe. This is a great facility, especially for business buyers, or who place orders in bulk. However, even consumers or “DIY buyers,” can search nationally or internationally for products they need.

8. A Chance To Buy Pennies On The Dollar: With so many competing sellers out there trying to get your attention with offers, discounts, etc, you as a customer, really are the “KING.” Needless to mention that you can zero in on some of the best deals around, within a short time. And that's not all, as most of the time shipping is free, or costs very little.

9. It Saves Time: When you go out shopping it can eat into your time, and this can be frustrating especially on a weekend. On the other hand with online shopping you can search and purchase much faster, and you also get to spend more time with family 'n' friends.

With so many benefits of online shopping for auto parts, you might visit a real store as you might go for a picnic from time to time.

US$10 Million of Motorcycle Parts On Liquidation Sale!

After the American Ironhorse Motorcycles had filed for bankruptcy a couple of months back, the bankruptcy court order has now asked the Liquid Asset Partners LLC to sell all the excess motorcycle parts worth about US$ 10 Million.

A myriad of motorcycle parts for sale entails those for meant for custom bikes, motorcycle apparel, hardware including motorcycle braking-system parts, primary chains, motorcycle electrical parts viz. headlights, taillights, motorcycle engine parts, motorcycle parts for V-Twins, choppers etc. You can view the list of the large inventory of the parts at LiquidAssetPartners.com.

The liquidation sales proceedings went live on August 25 itself. Owing to the magnitude of the inventory, the liquidation company is offering a chance to the industrial buyers viz. Auto part distributors and dealers before it's opened up to the general public. Seems to be a good opportunity for everyone to the motorcycle parts that they need and make the best of the proceedings.

The following are the key details:

You need to contact: Liquid Asset Partners LLC

Phone: (616) 719-5917

Dates (for general public): September 12 through September 14. opens at 9 AM, September 12.

Meanwhile on another front, the car manufacturers August sales figures are expected to be discouraging. See: US Auto Sales Could Nosedive In August!

US Auto Sales Could Nosedive In August!

Automotive manufacturers are slated to report heavy declines in the month of August, the WSJ reports based on a study by JD Power. Even though, the industry has induced incentives to encourage sales but the forecast for the month is expected to be discouraging.

Estimates reveal that the sales would decline to about 1.21 million vehicles. And as per the seasonally adjusted annual rate the estimated figure is 13.4 million vehicles, which is a good 2.8 percent down from August 2007 figure of 16.2 million vehicles. However it's still an improvement of 6.3 percent from July.

There's the expectation that the sales would pick up the month comes to a close. The reason is attributed to GM's 100th anniversary sales event, which means that many of its products would be up for sale at the proverbial "employee pricing." Only last month GM reported a 27 percent drop in sales, making it the lowest in the past 16 years.

Hardly any of the major auto manufacturers were spared from the clout of declining sales during the first two weeks of August. At the same time the figures of the Nissan Motor Co. were better than the rest of the manufacturers.

Meanwhile autopart makers can't let their mind off the skyrocketing gas prices and tight credit, which is for the most part responsible for the has led to the current fiasco.

As the downturn is expected to continue for some time to come, and with the gas prices staying high, it seems that the UK and German consumers covet hybrids, as a recent study had revealed.

AutoEvent: LA Auto Show 2008

Being held since the year 1907, the LA Auto show has been the center of attraction for the whole of auto industry including auto part suppliers. With the show being only the second International Auto Show in the US to be officially recognized by the Organisation Internationale des Constructeurs d'Automobiles, there's the anticipation that it would feature some truly pulsating exhibits.

The international automobile exhibition is an annual event held at the Los Angeles Convention Center in Los Angeles, California. Back in 1907, the first show was held at the at Morley's Skating Rink in downtown Los Angeles, just a few blocks away from the present venue. Historically held during early January, it now takes place in November, after it celebrated its 100 years of success in 2006.

The LA Auto Show usually conjures up images of scintillating concept cars and world debuts of many autos. However, there's a lot more for the aftermarket part suppliers and buyers as well. The show is just the right place for you to find and buy most automotive parts which are associated with trucks, vans and SUVs.

Here's a glimpse of what to expect, for those interested in aftermarket supplies.

Wheels, Tires & Suspension: Wheels are an important automotive part that not only enhance the look of the vehicles but ensure a good fuel economy too. A lot of wheel components such as Automotive Wheels, Automotive Tubes, Linkage Parts, Radial Tires, Tires and Wheels Accessories, Tubeless Tires, etc. make it possible. In 2007, a couple of wheel manufacturers and suppliers who exhibited included Lorinser, Diablo, Center Line Wheels, and many more.

Automobile Accessories: Most Trucks, Vans & SUV owners can expect a wide array of automotive accessories to customize and style their autos as the wish. Accessories such as Automotive Body Polishes, Automobile Maintenance Supplies, Automotive Seats, Car Care Products and Tools, Audio Devices, Video Devices, Security Devices, etc. don't power an automobile but the surely enhance our comfort and safety in addition to making the vehicle appealing.

Other notable exhibits last year were from specialty vehicles and tuners & performance, electronics & technology, appearance, supplies for automobiles.

Most major automobile manufacturers display at the show. At present there seems to be a lot of buzz about Hyundai, which is reported to showcase a hybrid version of the Sonata sedan at the Los Angeles auto show. The featured product is supposed to comprise a rolling chassis, and it would be rolled out with a production version to the United States in 2010. So get ready for some big action in November this year.

The Show's Key Details:

Show Name: LA Auto Show

Venue: Los Angeles Convention Center
1201 South Figueroa Street
Los Angeles, CA 90015

Dates: Press Days: November, 19 – 20, 2008
Sneak Preview Night: November, 2008
Public Days: November, 21 – 30, 2008

Follow the link for: Contact Information

For previous trade show reviews follow the links:

Truck Show 2008 &

The Tokyo Motor Show &

Automotive Trade Show: SEMA 2008.

UK & German Consumers Covet Hybrids!

Consumers in Germany and the United Kingdom have expressed strong interest in alternative powertrain options, such as hybrid-electric and clean diesel automobile engine technologies, according to recent study conducted by JD Power

The study was meant to measure consumer familiarity, interest and purchase intent for 13 emerging automotive technologies in Germany and the United Kingdom before as well as after an estimated market value was revealed.

The study found that before the average market price was revealed, interest in hybrid-electric technology ranked sixth and clean diesel ranked 12th among consumers in Germany. Additionally, prior to price introduction, interest in hybrid-electric technology ranked fifth and clean diesel technology ranked sixth among consumers in the United Kingdom.

However, once the average price was revealed, interest in alternative-powertrain technologies increased among consumers in both markets. In Germany, hybrid-electric technology ranked second and clean diesel ranked fifth among consumers. In the UK, clean diesel technology received the highest interest among consumers after the market price is revealed while hybrid-electric technology ranks third.

Apparently, of the 13 features examined in the study, alternative powertrain technologies and especially the clean diesel technology turned out to be the favorite among consumers in Germany and the UK in comparison to the US.

The differences in preference are attributed to tendency of consumers in European markets to purchase smaller vehicles, which are also better suited to hybrid-electric technology. Furthermore, Diesel automobile engines too have a stronger appeal and presence in Europe than in the United States.

During the study, when the respondents were quizzed before the average market price was revealed three features namely, portable navigation devices, built-in navigations systems and active cornering headlight systems (a vehicle-sensing feature used to enhance night driving) invited the highest interest among consumers in both Germany and the UK. At the same time UK's favorite were portable navigation devices, while the German folks were attracted more towards cornering headlight systems.

Another interesting find came after the market price was revealed to consumers. After which consumers in both Germany and the United Kingdom seemed to be much less interested in satellite radio compared with consumers in the US.

Age Wise Preferences

In Germany, consumers ages 38 years or older were more willing to pay the market prices for HD radio, navigation systems, collision mitigation systems, clean diesel technology and active cornering headlight systems, compared with consumers ages 16 to 37. Conversely, consumers ages 38 years or older in the United Kingdom were typically less willing to pay market prices for emerging technologies in general compared with younger consumers.

Gender Wise Preferences

Among consumers in both Germany and the United Kingdom, males expressed higher levels of awareness for the 13 emerging technologies included in the study, compared with females. In both markets, one of the largest gaps in awareness between males and females seemed to exist when considering awareness of premium surround sound.

Hybrids, of late have garnered a lot of interest, and the real or perceived disadvantages of hybrids seem to be waning away at a much faster rate. Perhaps skyrocketing gas prices have had a big contribution to the fast changing perceptions. Nevertheless, the auto part manufactures and automakers now know for sure what consumers want?

Breakthrough Gas Pedals For Auto Safety

When it comes to driving, it's only a matter of a split second between successful application of brakes, and a disaster due to a delay. The importance of a car's braking system can't be overestimated. As advancements to developing automobile safety technologies race on, researchers at Continental. The automotive parts supplier might just have struck gold by developing a foot pedal that communicates with the driver to keep the occupants safe.

The consequences of car crashes need no introduction and they can range from minor bruises to fatalities, or lifelong debility. However, the startling fact is that so many car accidents still happen well over a 100 years past the Automobile's invention. For instance, the US alone witnessed about 6,420,000 auto accidents in 2005, costing over US$ 230 Billion, about 3 million injuries and killing 42,000 people.

However, if the drivers had access to a system that could actually prompt them to release the accelerator and be prepared to brake, a lot of accidents could have been averted. Apparently, this might not be wishful thinking anymore as a new pedal called the Accelerator Force Feedback Pedal (AFFP) actually does make it happen.

The pedal, whenever it senses danger is programed to sound a warning to the driver by vibrating and generating counter pressure, hence signaling the driver to release the gas pedal and be ready to press the brakes.

Such pedals should come in handy during most dangerous circumstances, but should be especially useful in avoiding rear-end collisions. Most of which happen because the driver in the front, brakes abruptly, while the trailing driver is caught unawares. However, the trailing driver can avoid a collision only if she is alert at that point of time. And if not, because she was distracted, it spells a catastrophe. Hence in such a situation if the accelerator pedal itself prompts the driver to take the foot off the gas pedal and push the brakes, initiating the braking system, the consequence would most probably be desirable.

Healthy Brakes: Top 3 DIY Tips

What's the point in driving if you can't reach your destination, alive! And for the most part it's your car's brakes that ensure your safety throughout a journey. The best part about ensuring a fully functional braking system is that you can yourself run some quick checks to see whether it needs your attention or not.

And that's not all, you can even carry out some of the repairs yourself. The following three tips should help you keep your car's braking system happy, and you and your passengers safe.

1. Brake Fluid: The system's Lifeblood

The key here is to have the right levels of brake fluids in the reservoir. It's a lot more easier these days to check the fluid levels, as most of the brake fluid reservoirs are see through and have markings on them to show the levels.

To check the fluid level, lift open the hood and locate the reservoir. You'd find it at the back of the engine bay and in front of the driver's side. It's positioned high up for easy access.

Once you're there, check the markings, wipe the dust off the reservoir if you can't see clearly. If it needs replacement then here's how you should go about topping it up.

A. Clean any grime or dust from around the reservoir cap before opening it.
B. Pour in the fluid slowly, allowing it time to settle.
C. Close the cap and you're done.

However, it's a good idea to check the level again after a day just to make sure that there isn't a void after the air bubbles have escaped. Also don't take point “A” lightly, as any impurity that falls into the reservoir could harm the system.

2. Brake Pads: The systems cutting edge

While in some automobiles you'd need to remove the wheels, in others you can carry out the inspection without it. However the important thing is to get a clear view of the pads.

To make an assessment, follow surface of the disc towards the top, and you should see that the outer pad is touches the disc, of the disc brakes. Over time the pads do wear, but if they've worn to the breadth of two pennies stacked atop each other, it's high time you replaced them.

3. Brake Disc: Too critical to lose

To run an assessment of the brake disk you'd need to take a look just like you did with the pads. Run your eyes from the center to the outside edges of the disc and it should appear to be shiny. Minor lines and scratches are hardly a thing to bat an eyelid, but any rough areas or deeper grooves should certainly raise a big red flag. Replace them ASAP, and in pairs.

You'd need to run these checks just a few times each year.

If you have your car's braking system in order you wouldn't ever put yourself in danger, unnecessarily.

You might also want to go through the following DIY and other tips covered earlier.

Top 5 Tips - DIY Car Maintenance & 63 Sweet Tips To Save Gas!

Are Luxury Car Sales In Deep Trouble?

Just as the auto industry struggles to remain afloat, so do the segments it's made up of. And luxury car sales are no exception. Since, luxury automobiles are faced with a double whammy of being high priced and being gas-guzzling, are we to see their sales go from bad to worse?

Automobile and auto part sales have generally been affected negatively, owing to high gas prices and economic downturn, with auto stocks showing spikes only sporadically, as crude prices lower a bit. Now, when it comes to the sales of Luxury cars and trucks they've taken a hit of 11% year-to-date (YTD), while the auto sales throughout the US have been down by 18%.

Based on the figures above, it appears that luxury sales are much better than the rest of the industry and since they only account for for just about 10% of the industry's sales, they won't have much of an impact. The margins however, on all products within the segment are large, and which is what makes it valuable.

At the same time, given the shift in demand from gas-guzzling automobiles towards smaller ones, it appears that no one would go for them, but the recent announcement by the General Motors Corp of an SUV, Cadillac Escalade Hybrid indicates that auto makers have different expectations. And it seems that they might be right because the high-end products are directed towards a different target audience altogether. The target segment for luxury vehicles shouldn't have problems with affordability per se, including paying for high gas prices, while the need to acquire high-end products persists.

The factor, aside from the gas-guzzling ability that could affect the purchase of bigger automobiles is the perception that these vehicles are less environment friendly. Now while demand might exist, whether the big autos sell well or not seems to depend on a lot more than their uniqueness. But auto makers seem to have an answer to even this conundrum by producing hybrids, which have a better standing when it comes to eco-friendliness. The Cadillac Escalade hybrid seems to be proof enough, and perhaps other car makers like Toyota or Ford would follow suit if the experiment goes off well.

On the whole some rough weather does loom large over the luxury car segment, but given the efforts auto industry is ready to put in, luxury sales could sail through the storm, quite well.

Study: Vehicle Quality Dictates Customer Satisfaction!

Automobile manufacturers can benefit from repeat purchases and word of mouth recommendations for their products, if the long-term dependability rates for their products are high.

So will we see auto makers highlighting dependability as a selling point during the upcoming automotive trade events?

Deterioration in vehicle quality during the first three years of ownership strongly affects overall customer satisfaction as well as customer willingness to recommend their vehicle model, found a recent study by JD Power.

How Quality Affects Satisfaction?

This study measured problems experienced by original owners of 3-year-old (2005 model year) vehicles and found that on average, customers report experiencing 75 percent more problems in the third year of ownership than during the first 90 days.

The models with the largest increase in problem levels resulted in the highest declines in customer satisfaction as well as the probability of the owners recommending their vehicle models.

On the contrary, those models that averaged less than 35 percent problem growth fared a lot better in overall satisfaction during the three-year period. However, none of the models studied, reported lesser problems by the third year.

Where The Auto Makers Have Failed?

Although, car manufacturers aren't completely indifferent to the problems of car owners, and have indeed addressed quite a few issues, the following problems have remained unattended during the three year period, since the study began in 2005, up to now.

These problems include:

1. Excessive wind noise
2. Noisy brakes
3. Vehicle pulling to the left or right
4. Issues with the instrument panel/dashboard
5. Excessive window fogging

In fact all of these problems are the five of the top 10 problems reported industry-wide in the 2008 Vehicle Dependability Study, and that they were among the top 10 most frequently reported problems in the 2005 Initial Quality Study too.

I know how irritating noisy braking systems can be, automakers need to act fast and do something about these. Perhaps an extra attention to these issues before a vehicle launch would result in happy consumers, and consequently, increased customer satisfaction.

Why Car makers Still Deserve Kudos?

• The results also show that long-term vehicle quality has gone up by 5 percent industry-wide in 2008.


• Compared with 2007, there's been an overall decrease of 10 problems per 100 vehicles.


• Between 2007 and 2008, over 60 percent of the 38 nameplates studied showed improvements.

And out of the 19 segments studied, the midsize premium MAV segment improved the most with 36 percent. Next in line were the compact car and midsize car segments, both of which combined, accounted for over 50 percent overall industry improvement.

With the highest improvements reported in the small car segment, it's good news for consumers because these are also the segments which have become the 'hot cakes,' in the wake of skyrocketing gas prices and a wobbly economic scenario.

Vehicle Dependability Scorecard

For the 14th time in a row, Lexus ranked highest in vehicle dependability, improving by 25 problems per 100 vehicles since 2007 to achieve a score of 120 PP100.

The following graph shows the first 23 brands by rank.

The figure below shows the top three models for each of the car segments.
The chart below shows the top three models for each of the Truck/Multi-Activity Segments (MAV).


So while car makers fix their products, you might want to take a peek into the hunting ground for car buyers these days.

Autobook Review: “Time for a Model Change:.."

All riled up and overstressed, the auto industry as it sails through the intimidating high tide of economic battery, alarmed and defensive automakers attempt to salvage the best out of the bad times. This also seems to be an opportune moment for a review of the industrial events as they unfold, and to gain insights in to the hows and whys. And then, to march ahead with a perked up grit, coupled with an approach that signifies a paradigm shift, perhaps.

Authored by Graeme P. Maxton and John Wormald, both seasoned industry veterans, the book “Time for a Model Change: Re-engineering the Global Automotive Industry" delves deep into the unsystematic thinking, and unsynchronized approach that ails the industry as a whole, both the auto manufacturers and the auto parts sector.

The development of the automotive industry has turned out to be the one of the most significant industrial phenomenon of the previous century, that's impacted the society like no other. And it continues to be one, as it makes up for more than 11% of the GDP of Europe, North America, and Japan. This means that a one in nine people are employed by the industry.

The reader, throughout the journey of its reading would encounter broad, new, practical, critical, and far reaching recommendations meant to ensure the industry's sustainability, by satisfying its myriad stakeholders.

The book takes the reader on and intriguing voyage bit by bit, here's the rundown of the contents.

1. From automania to maturity: in the main markets at least


2. The problems that can be fixed: dealing with noxious emissions, traffic accidents and congestion


3. The global resource challenges: energy and space


4. A global industry: the changing international order


5. The supplier industry: the catalyst for the profound changes to come


6. The downstream sales and service sector: the coming revolution


7. When the numbers don’t add up: an industry that doesn’t earn its keep


8. Choosing a future for the automotive industry


9. Time for a model change

The content is comprehensive and thoroughly researched, just as you would expect from the ace analysts. The critical analysis exposes the fallibility of the present system, but not without several eyeopening ideas as solutions. Further, since the coverage presents the automobile industry's overview as a whole, and not its fragments, the text has universal appeal. For instance, the aftermarkets are an ever expanding segment but are still fuel by obsolete standards of retailing. The authors explain this and point out the opportunities that lie within the sector.

All in all, the book appears to be a must read for one and all associated in any way with the industry, not to mention all those who're simply interested.

The book's details follow:

Title: Time for a Model Change: Re-engineering the Global Automotive Industry

Publisher: Cambridge University Press (December 6, 2004)

ISBN-10: 0521837154

ISBN-13: 978-0521837156

You can purchase it either from Cambridge.org or Amazon.com.

Happy Reading! :-)

You might want to read the previous review as well, the following link will take you there: Autobook Review: “Six Men Who Built the Modern Auto Industry”