Customers surveyed, on average, spent $1,190 annually in auto premiums so far this year, an increase from $1,050 reported last year. J.D. Power noted that since 2000, customer-reported auto premiums have soared by an average of 32 percent.

But the study found that despite rising rates, customer satisfaction with auto insurers is stabilizing after a two-year decline.

Carolyn Waidelich, research manager at the Westlake Village, Calif.-based J.D. Power, noted that while it's difficult to view stabilization of customer satisfaction as an improvement, "it's a step in the right direction when you compare it to the dramatic drop in customer satisfaction the industry had experienced since 2001."

"Consumers don't want to be forced to pay more for the same insurance services, but good customer service can help offset the sting of rising premiums," Ms. Waidelich added.

The amount of time and number of phone calls it takes to settle an issue are vital to customer satisfaction, J.D. Power observed. When customer issues are resolved in the first call, it has a positive effect on their satisfaction levels. However, satisfaction is quickly diminished with each additional call, according to the study.

Among individual auto insurers, Amica Mutual Insurance Company--a Lincoln, R.I.-based insurer with over $1 billion in premiums and one million policies enforced--was ranked the highest in customer satisfaction for the fourth straight year.

"This is the fourth year that we've been ranked number one," said John Connors, senior vice president at Amica Mutual. "Our commitment to customers and to provide exceptional service for our policyholders has always been the number-one priority at Amica."

"The fact that we are a mutual company and that our policyholders own the company is the origin of our high level of commitment to them," Mr. Connors told National Underwriter. "This is an attitude that permeates our corporate culture and our new employees come to learn that very quickly."

After Amica, Los Angeles-based Automobile Club of Southern California came in second in the overall customer satisfaction ranking, followed by Erie Insurance Group in Erie, Pa., and State Farm Insurance Companies in Bloomington, Ill.

Columbus, Ohio-based Nationwide, which came in at number five, was the most improved provider in the study, moving up nine positions over last year.

At the other end of the ranking, Hartford, Conn.-based Travelers Property Casualty Corp.; Prudential Financial Inc. in Newark, N.J.; American International Group Inc. in New York; and Mayfield Village, Ohio-based Progressive Corporation all fared worse than the industry average in the study, while OneBeacon Insurance Group in Boston came in last in customer satisfaction.