Allstate, GEICO, State Farm… Where Are Consumers Going Amidst Increased Auto Insurance Shopping?

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The report — produced by JD Power in partnership with TransUnion — shows consumers are taking note of the historic rate increases their insurers are making, forcing their hands to shop around for better deals. In Q4 2022, the shopping rate was seen at 12.1%, characterized by a busy shopping month in November, which eventually cooled down in December.

According to JD Power, US auto insurance shopping activity in Q4 2022 was the highest it has seen in the 2+ years of reporting.

Not only did shopping for auto insurance pick up last quarter; Conversion rates also rose during this period. The report found that more than 4% of auto insurance customers have switched carriers.

JD Power tracked switching trends by one insurance carrier’s biggest competitors and found the following:

The report also tracked customer loyalty during that period — “loyalty” is tracked based on the percentage of a carrier’s customers who shop from other insurers; A customer base is “loyal” if the percentage of customers who buy from other carriers is low. The list goes on:

High fidelity:

    1. USAA


    1. MAPFRE


    1. NJM


    1. friend


    1. Eri


Low fidelity:

    1. National Public


    1. Hanover


    1. Progressive


    1. Country


    1. Freedom is mutual


Interestingly, JD Power’s report also commented on telematics – a technological innovation that many believe would have solved the high-cost crisis of auto insurance. According to the report, telematics adoption appears to have stabilized and plateaued in Q4 2022, despite its strong adoption earlier in the year. Citing data from TransUnion, JD Power found that 40% of consumers who chose to have the technology installed in their vehicles saw their bills increase — a potential barrier to continued adoption, the analytics firm suggested.

Another report published recently ValuePenguin lists which US states pay the most and the least for auto insurance. Michigan, Florida and Rhode Island are the top three most expensive states for full coverage auto insurance, while Vermont, Maine and Idaho are the top three cheapest, the report noted.

What are your thoughts on the increase in US auto insurance shopping activity? Leave a comment in the section below.


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