National Underwriter - August 2019

On average, 65 million drivers in the U.S. — or about one in three — have a roadside breakdown each year. In fact, these events happen so frequently that there are three times more roadside events annually than there are windshield repairs, non-drivable accidents or vehicle thefts combined.

These figures should be exciting to insurers.

MUTUALLY-BENEFICIAL RELATIONSHIP

Today’s auto insurance industry is increasingly competitive. Roadside assistance has become one of the few, and often one of the first, touchpoints for insurers to engage with consumers and help differentiate their brand beyond claims.

Agero research has found that nearly half of
consumers expect their insurer to be there for
them during vehicle breakdown events and that
consumers are twice as likely to turn to their auto
insurer, versus a motor club, to make a roadside
assistance request.

As a result, roadside assistance has been shown to be a significant driver of policyholder satisfaction and brand loyalty. Roadside coverage can boost insurer net promoter scores (NPS) by as much as 45 points, depending on the brand and its existing baseline NPS. Further, our research indicates that over half of consumers feel their roadside assistance experience is one of the most important factors (beyond price) they consider when renewing or switching auto insurance. What’s more, roadside assistance can be a boon to such claims services as accident management. Insurers offering roadside assistance see six times more tow volume from the accident scene.

As policyholders get used to contacting their carrier for roadside incidents, they become more likely to call after an accident. This more immediate first notice of loss (FNOL) can enable earlier