Consumer satisfaction falls amid auto insurance rate hike, according to JD Power study

According to new research from JD Power, drivers are increasingly dissatisfied with their auto insurance providers as rates rise. (iStock)

Drivers are becoming increasingly dissatisfied with their car insurance providers as rates rise, according to recent findings from JD Power. The consumer research firm’s 2022 Insurance Shopping Study found that rate increases are being driven by a 41% increase in used car pricesincreasing vehicle replacement and repair costs, in addition to forcing insurance companies to raise rates.

“A perfect storm of record replacement costs, increasing crash frequency and severity, and an economic outlook that suggests this situation won’t change anytime soon is forcing a major industry disruption,” Marty Ellingsworth, executive director of JD Power of P&C insurance. intelligence, he said. “In the near term, this disruption is manifesting itself in very low customer satisfaction with pricing and high rates of new policy purchases.

He added that looking ahead, the disparity could “be the catalyst for significant adoption of usage-based insurance,” which he says could be the solution for insurers to build loyalty with their customers amid the current status of economy.

If you’re looking to lower your auto insurance rate, shopping around for a new provider can help you do just that. Visit Credible to find a quote for your custom auto insurance rate on a discount auto insurance policy without affecting your credit score.


Who is switching car insurance providers the most?

As the cost of auto insurance rises, many consumers are looking elsewhere for lower rates and driving an increase in new policy shopping activity, according to JD Power.

The average overall satisfaction score among those shopping for car insurance quotes was 862 on a scale of 1,000, the firm’s study found. This was down six points from last year; six of the nine largest auto insurers — along with six of the 11 mid-size insurers — saw declines in shopping experience satisfaction so far this year.

At the start of 2022, the rate of drivers buying new insurance was down from a year earlier. But that changed in March and April, as rate hikes became more common. The biggest reasons drivers switched insurance during this time, according to the study, were proactive price controls and toll hikes.

Among those who shopped because they had a rate increase in their insurance, 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 seek 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 car insurance rates for you.


The best car insurance companies when it comes to customer service

When it comes to providing a satisfying shopping experience, State Farm held the highest ranking among large insurers with an 885 according to JD Power, out of an average score of 863. Among midsize auto insurers, The Hartford held ranked highest at 889, followed by Erie Insurance at 878 and Amica Mutual at 874. The average for mid-sized providers is 855.

In general, below are the rankings of major auto insurance providers for their customer satisfaction:

  • State farm: 885
  • Farmers: 862
  • Liberty Mutual: 860
  • Progressive: 859
  • Nationwide: 858
  • Overall condition: 854
  • GEICO: 853
  • Passengers: 853

If you’re looking for ways to lower your auto insurance premiums, switching providers can help you save money. Contact Credible to speak with an auto insurance expert and get all your questions answered.

Have a question about finances but don’t know who to ask? Email the Trusted Money Expert at [email protected] and your question can be answered by Credible in our Money Expert column.

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