Car rates

Consumer Satisfaction Drops Due to Rising Auto Insurance Rates, JD Power Research Finds

Drivers are increasingly unhappy with their auto insurance providers as rates rise, according to new research from JD Power. (Stock)

Drivers are increasingly dissatisfied with their auto insurance providers as rates rise, according to the latest findings from JD Power. The consumer research firm 2022 Insurance Purchasing Study found that rate hikes are driven by a 41% increase used car pricesincreasing vehicle replacement and repair costs and forcing insurance companies to raise their rates.

“A perfect storm of record-breaking replacement costs, increased crash frequency and severity, and economic prospects that suggest this situation won’t change any time soon are forcing major disruption to the industry,” said Marty Ellingsworth, chief executive. executive of JD Power’s property and casualty insurance. information, said. “In the short term, this disruption manifests itself in very low customer satisfaction with price and high rates of new policy purchases.

He added that looking forward, the disparity could “be the catalyst for meaningful adoption of usage-based insurance,” which he says could be the key for insurers to retain customers in the world. current state of the economy.

If you’re looking to lower your auto insurance rate, shopping around for a new provider might 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 affecting your credit score.

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Who changes car insurance providers the most?

As the cost of auto insurance rises, many consumers are looking elsewhere for lower rates and driving increased activity to buy new policies, according to JD Power.

The average overall satisfaction score among those seeking car insurance quotes was 862 on a scale of 1,000, according to the company’s study. That was down six points from a year ago; six of the nine largest auto insurers – as well as six of the 11 mid-size insurers – have seen declines in satisfaction with the shopping experience so far this year.

At the start of 2022, the rate of drivers looking for new insurance was down compared to the previous year. But that changed in March and April as rate increases became more common. According to the study, the top reasons drivers switched insurance during this time were proactive price checking and rate increases.

Of those shopping around because they had a rate hike 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 out new insurance because of price, according to the study, 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 save you 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 AN AVERAGE 114% MORE FOR CAR INSURANCE, STUDY SAYS

The Best Car Insurance Companies for Customer Service

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

Overall, here are the rankings of major car insurance providers for their consumer satisfaction:

  • State Farm: 885
  • Farmers: 862
  • Mutual Liberty: 860
  • Progressive: 859
  • Nationwide: 858
  • General condition: 854
  • GEICO: 853
  • Travelers: 853

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

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