Aim of this research was investigating relationship between customer satisfaction and service quality in Passargad insurance of Khorasan Razavi. Five dimensions of customer satisfaction include reliability, capabilities, responsiveness and assurance and empathy were tested by SERVPERF model. Sampling in this study was cluster and 196 people selected by SPSS software in order to complete questionnaire. Reliability of the questionnaire was tested.The results of this study indicated that a significant relationship exists between customer satisfaction and service quality.If staff have appropriate interaction with customers, be able to meet customer needs and solve customer problems. Consequently, it can be concluded that customers of Pasargadae insurance are satisfied. Furthermore, Customers who are loyal to the organization, it will make more money for the organization and introducing new clients through face to face advertising and it leads to reduce cost of advertising and it leads to reduce costs of advertising. Eventually, loyal customers can be a useful source for offering new products, services, and new ideas.