Auto Insurance rate increases have many customers shopping for a new
insurer, but few are actually switching insurers, according to the J.D.
Power 2015 U.S. Insurance Shopping StudySM released today.
Now in its ninth year, the study measures insurance shopping and
purchase behavior, and purchase experience satisfaction among custome
rs
who recently purchased insurance across three factors (in order of
importance): price, distribution channel and policy offerings.
Auto insurers increased rates by an average of 2.1 percent nationwide in 2014, following an increase of 2.5 percent in 20131.
Those rate hikes are contributing to customers shopping for a better
deal, and while more customers are shopping for a new insurer—39 percent
in 2014 compared with 32 percent in 2013—fewer are actually switching.
The 2015 study finds that among those who shopped, only 29 percent
actually switched in 2014, compared with 37 percent in 20132.
“Customers are being pushed into the market due to rate increases,
but unless they can find a policy that will save them money, they’re not
switching providers,” said Valerie Monet,
director of the insurance practice at J.D. Power. “In fact, many of
those customers can’t find a better deal and ultimately don’t
switch insurers.”
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