Increases in Auto Insurance rates by an average of 2.1% nationwide in 2014, following an increase of 2.5% in 2013 have many customers shopping for a new insurer, but few are actually switching insurers, according to the latest study.
Such increases in insurance rates are prompting customers to shop for a better deal, and while more customers are shopping for a new insurer—39% in 2014 compared with 32% in 2013—fewer are actually switching. The 2015 study finds that among those who shopped, only 29% actually switched in 2014, compared with 37% 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, the source of the data. “In fact, many of those customers can’t find a better deal and ultimately don’t switch insurers.”
Shoppers who switched insurers indicate an average premium savings of $388 in 2015, compared with $340 in 2014 and $351 in 2013. Comparing satisfaction scores from no savings up to $250 or greater, with each $50 increase in savings, satisfaction with price increases by approximately 25 points, on average.
Satisfaction with the purchase experience among customers who recently switched insurers improves by 12 points year over year to 833 in 2015. A 13-point improvement in the price factor—the leading driver of customer satisfaction with the purchase experience—is the primary driver of higher overall satisfaction in 2015.
Erie Insurance ranks highest among auto insurers in providing a satisfying purchase experience for a third consecutive year, with a score of 870, up from 843 in 2014. Erie Insurance performs particularly well in all three factors and improves significantly in the price and distribution channel factors. Ameriprise and The Hartford rank second in a tie (869), while CSAA Insurance Group ranks fourth (861) and Amica Mutual ranks fifth (850).
