Drivers are becoming increasingly dissatisfied with their car insurance providers as rates rise, according to the latest findings from JD Power. consumer research firm Insurance Purchase Study 2022 found that rate hikes are being driven by a 41% increase in used car pricesraising vehicle replacement and repair costs, as well as forcing insurance companies to increase rates.
“A perfect storm of record replacement costs, increased crash frequency and severity, and an economic outlook that suggests this situation won’t change any time soon is forcing major industry disruption,” said Marty Ellingsworth, executive managing director of JD Power property and casualty insurance. intelligence, he said. “In the short term, that disruption manifests itself in very low customer satisfaction with price and high purchase rates for new policies.
He added that going forward, the disparity could “be the catalyst for significant adoption of usage-based insurance,” which he said could be the solution for insurers to build customer loyalty amid the current state of the economy.
If you’re looking to lower your auto insurance rate, finding a new provider could help you do just that. Visit Credible to find a quote for your personalized auto insurance rate on an auto insurance policy with auto insurance discounts without hurting your credit score.
NEW VEHICLE PRICES FALL FOR THIRD CONSECUTIVE MONTH, BUT DRIVERS STILL PAY ABOVE TAG PRICE: DATA
Who is changing auto insurance providers the most?
As the cost of auto insurance rises, many consumers are looking elsewhere for lower rates, driving a surge in new policy-buying activity, according to JD Power.
The average overall satisfaction score among those seeking auto insurance quotes was 862 on a scale of 1,000, the company’s study found. This was six points less than last year; Six of the nine largest auto insurers, along with six of the 11 median insurers, have seen drops in satisfaction with the shopping experience so far this year.
At the beginning of 2022, the rate of drivers looking for new insurance was down compared to the previous year. But that changed in March and April, when rate hikes became more common. The main reasons drivers switched insurance during this time, according to the study, were proactive price checking and rate increases.
Among those who bought because they had an increase in their insurance rate, 64% reported increases of 11% or more.
Older generations were also more likely to switch insurance due to cost savings. Specifically, 67% of pre-Boomers were driven to look for new insurance because of price, the study found, compared to just 41% of Gen Z shoppers.
If you’re looking to switch auto insurance providers, using an online marketplace to compare multiple options can help you save money. Visit Credible to compare multiple auto insurance providers at once and compare coverage options to choose the one with the best auto insurance rates for you.
DRIVERS WITH LOWER CREDIT SCORES PAY ON AVERAGE 114% MORE FOR CAR INSURANCE, SAYS STUDY
The best auto insurance companies when it comes to customer service
When it comes to providing a satisfying shopping experience, State Farm ranked highest among large insurers with 885 by JD Power, out of an average score of 863. Among midsize auto insurers, The Hartford ranked highest with 889, followed by Erie Insurance at 878 and Amica Mutual at 874. The average for medium providers is 855.
In general, the following are the rankings of the large auto insurance providers based on consumer satisfaction:
- State farm: 885
- Farmers: 862
- mutual freedom: 860
- Progressive: 859
- National: 858
- Statewide: 854
- GEICO: 853
- Travelers: 853
If you’re looking for ways to lower your auto insurance premiums, switching providers could help you save money. Contact Credible to speak with an auto insurance expert and get all your questions answered.
Do you have a finance-related question, but don’t know who to ask? Email the credible money expert at [email protected] and your question could be answered by Credible in our Money Expert column.