A survey of auto policyholders found 49% felt frustrated and sad when they learned their vehicle was totaled, according to a news release from Hi Marley, an SMS-driven conversational platform built for P&C insurance, which conducted the survey. 

Hi Marley surveyed more than 800 policyholders nationwide who had reported a total loss claim in the past three years. 

Fifty-five percent of survey respondents felt they could have been better informed of their claim’s process, the release said. Sixty percent said they interacted with two or three people on their claim. Fifty percent said they had to repeat basic information two to three times, and 14% repeated information more than four times. 

“The survey revealed an essential takeaway for carriers: more than half of respondents cited their most significant pain points had to do with a lack of understanding and clarity throughout the claim, including not knowing the claim status (11%), process, responsibilities, or next steps (27%), or even knowing who to work with or speak to (13%),” according to the release.

“These results highlight communication breakdowns and showcase how carriers can leverage asynchronous single-thread communications throughout the total loss process to drive clarity and keep the policyholder informed while improving the customer experience and reducing total lost cycle time.”

The challenge of balancing cost containment with improved customer experience is magnified in auto total loss events, the release said. It said total loss claims traditionally have the lengthiest cycle time of all claim types and require multiple touchpoints with policyholders. 

Forty percent of respondents said their time-to-resolution took a month or longer, according to the release. It said those claimants were more likely to experience frustration (68%), anger (37%), and confusion (37%) compared to those who saw faster time-to-resolution. 

Forty-one percent of respondents said they would have appreciated additional support or guidance during the total loss claims process. 

“We understand the complexities that contribute to the time it takes for carriers to resolve a total loss claim, but this survey highlights the importance of an empathy-first approach throughout the process, especially when claims take longer than expected,” said Hugh Allen, principal product strategist at Hi Marley, in the release. “This presents an opportunity for carriers to streamline communication channels and improve efficiencies. Keeping customers informed and supported positively impacts the claimant’s emotional state during a tumultuous time.”

Insurance company investments in their mobile apps such as automatic collision reporting capabilities, enhanced image upload, and body shop selection tools have resulted in significantly higher customer satisfaction scores, according to J.D. Power’s 2024 U.S. Claims Digital Experience Study.

Overall, satisfaction with the digital insurance claims process is currently 871 on a 1,000-point scale, up 17 points compared to 2023, driven largely by improvements in the range of services offered on mobile apps and websites and the visual appeal of those digital properties, J.D. Power said.

“The digital channel has now surpassed traditional phone-based communication as the most satisfying way for insurance customers to submit a new claim,” said Mark Garrett, J.D. Power’s director of global insurance intelligence, in a press release.

Hi Marley recently released Total Loss Assist, which offers an automated workflow that guides the policyholder through their total loss process, according to their press release. The software also provides personalized, automated text messages to customers, it says. 

CCC’s most recent Crash Course Report shows total losses accounted for 21.5% of claims through the first half of 2024. The report indicates that total loss claims have steadily increased since 2013, when they made up 14% of all claims. 

The report also says that the number of total loss vehicles will likely increase with the erosion of used vehicle values and an increasingly mature vehicle pool.

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