How Do Policyholders Navigate the Total Loss Process?

Auto total loss claims are lengthy. The complex claims process includes six steps that require multiple contacts and touchpoints:

1. First Notice of Loss
2. Total Loss Determination
3. Total Loss Assignment
4. Customer Release
5. Title Transfer
6. Payment

Hi Marley surveyed 800 US policyholders who recently had a car declared a total loss to learn more about their experiences and identify ways carriers can improve the total loss claim process.

The Emotions of a Total Loss

A total loss is stressful for a policyholder. According to Hi Marley’s survey, the top five emotions policyholders experienced when learning their vehicle was deemed a total loss:

• Sadness (55%)
• Frustration (48%)
• Overwhelmed (37%)
• Shock (32%)
• Anger (30%)

And the top five emotions policyholders experienced throughout the total loss claim process included:

• Sadness (32%)
• Frustration (54%)
• Overwhelmed (41%)
• Anger (28%)
• Confusion (26%)

When learning their vehicle was totaled, most survey respondents reported feeling sad, followed by frustrated, overwhelmed, shocked, and angry. As the claim progressed, confusion replaced initial shock as a top emotion, and more policyholders reported feeling overwhelmed and frustrated.

Customer Satisfaction Challenges With a Total Loss

Hi Marley’s survey found that long wait times and inefficient processes create a poor customer experience throughout the total loss process.

• 36% of policyholders waited more than a week to learn their car was totaled.
• 60% Repeated details 2-3 times or more throughout the claim.
• 75% Worked with 2-3 people or more to resolve their claim.
• 66% Say the resolution took as long or longer than expected.
• 55% Felt they could have been better informed of their claim’s status.

Policyholders Want Additional Support During a Total Loss Claim

Forty-four percent of policyholders were less than satisfied with their insurer’s assistance during the claims process.

Five key trends emerged among the type of support the policyholders felt would have helped to ease confusion and frustration.

• Clarity Around Whom to Speak To
• Clearer Process Guidelines
• Proactive Communication
• Help and Guidance Dealing with Other Parties
• Empathy and Personal Support

How Total Loss Assist™ Can Help

Carriers have an opportunity to enhance customer satisfaction in the claims process. Hi Marley’s Total Loss Assist can help.

With Hi Marley’s Total Loss Assist, carriers tackle total loss process inefficiencies to improve claims handling. Through a unique integration with Copart’s Seller Portal, Hi Marley reduces the number of touchpoints needed to resolve auto total loss claims while increasing customer satisfaction.

How Can Total Loss Assist Help with Clarity Around Whom to Speak To?

Policyholders want clarity around whom to speak to throughout the claim. Respondents mentioned the desire for a single, consistent representative or claims manager to handle their cases. This would reduce the frustration of repeating details to multiple people and would streamline communication and accountability.

By integrating with Copart, Hi Marley’s Total Loss Assist creates one trusted, unified conversation for all parties and offers a dedicated point of contact, streamlining communication during a total loss.

“Our customers today expect the same speed, convenience, and care they experience in every other aspect of their lives,” said Paul Measley, former Chief Claims Officer at Plymouth Rock Assurance. “We now meet that need with Total Loss Assist to transform the digital customer experience through a streamlined workflow between adjusters and policyholders and provide regular communication in an easily accessible and digestible way, making the total loss experience much easier.”

How Can Total Loss Assist Help with Clearer Process Guidelines?

Respondents want an overview or roadmap of the claim process at the beginning. Policyholders noted that a simplified explanation of each step, timeline expectations, and what documents or actions were required would have helped ease confusion and frustration.

With Total Loss Assist, all parties communicate through one unified text thread. Carriers can explain the process the second a policyholder’s vehicle is deemed a total loss, including expectations around each step and timing, and what documents or actions are required.

“Our customer surveys have said things like ‘clear and helpful communication,’ ‘expedited the claim process,’ ‘the process was punctual,’ ‘response time was impressive,’ ‘everything went smoothly’,” said Jake Carr, Auto Damage Manager at Indiana Farm Bureau. “One that struck a chord said, ‘I was informed every step of the way. I was always replied to when I had a question. The work was streamlined and concise.’ And, not that long ago, I would not have qualified our company’s total loss process as streamlined and concise. So it’s great to see this feedback from our customers on the total loss claims now, and it’s a net win for our adjusters as well.”

How Can Total Loss Assist Help with Proactive Communication?

Many policyholders felt left in the dark and wanted proactive updates rather than having to reach out for updates themselves. A significant number of respondents expressed a need for more frequent and clear communication.

With Total Loss Assist, while the carrier and ecosystem partners process the claim, automatic messages are sent to the policyholder, providing frequent, proactive status updates on the claim, transparency on next steps, and explanations of delays.

For example, the Auto Club Group’s total loss unit experienced a 30 percent decrease in inbound calls since implementing Total Loss Assist.

A text thread gives the insured something to reference if they forget to write something down,” said Chris Gerhardt, Claims Director at ACG. “And that, in and of itself, has been beneficial; it’s made the interactions smoother and reduced the amount of follow-up or repeat questions from the insured.”

How Can Total Loss Assist Improve Help and Guidance Dealing with Other Parties?

Respondents mentioned difficulties in handling third parties, such as the other drivers’ insurance companies, repair shops, or tow yards. They expressed a desire for advocacy and guidance when interacting with third parties.

With multi-party texting, additional partners can be added to the Hi Marley text thread, such as tow and rental companies, creating a single conversation. Total Loss Assist allows carriers and third-party providers to communicate with policyholders more quickly and efficiently, reducing uncertainty and resolving claims faster from FNOL through payment.

How Can Total Loss Assist Help with Empathy and Personal Support?

Several respondents desired more empathy and personal support. They felt that they were treated as just a number, or that their emotional and practical challenges were overlooked during the total loss claim. For some, emotional support or more compassionate handling could have greatly improved their experiences.

Obsessing over every word and anticipating the customers’ questions was the foundation of Total Loss Assist. Carriers can keep everyone informed in real time with automated, customizable message templates and ensure that the language used in their communication is compassionate and takes emotional and practical challenges into consideration.

“Reducing the number of touchpoints needed to resolve auto total loss claims while keeping an open line of communication has significantly improved overall customer satisfaction,” said Jeff Dunlap, Director of Operations at Copart.

What are The Benefits of Total Loss Assist?

Total loss accidents are devastating for policyholders. Hi Marley can help carriers be clear and responsive, and ultimately completely turn around the customer experience. Using Hi Marley’s Total Loss Assist can improve customer, adjuster and overall network satisfaction.

Compared to no Hi Marley usage, with Total Loss Assist, carriers can expect:

• 35% decrease in cycle time on average between FNOL and vehicle pickup
• $125-$150+ Cost savings  per total loss claim
• 7% increase in policyholders planning to renew

To learn more about the benefits of Total Loss Assist and how you can tackle inefficiencies at every step, and improve the customer experience, download our ebook Voice of the Policyholder: Key Insights to Transform a Total Loss into a Total Win.