The study also found that more than 1 in 3 customers are interested in purchasing embedded insurance , which is auto insurance provided directly through the car dealer or manufacturer . •
MARKETPLACE
HALF OF AUTO INSURANCE CONSUMERS ARE SHOPPING FOR NEW POLICIES
written by AnneMarie McPherson , IA magazine
Nearly half ( 49 %) of U . S . auto insurance customers say they have actively shopped for a new policy within the past year , according to the J . D . Power “ 2024 U . S . Insurance Shopping Study ." Of those , 29 % have switched carriers , with the highest rates of switching among Generation Z consumers .
The increase in shopping is prompted by soaring auto insurance costs — with a 22.2 % year-over-year increase in the average cost of auto insurance through the end of February , more than any other type of household expense , according to the U . S . Bureau of Labor Statistics consumer price index summary — combined with less-than-stellar customer satisfaction scores , according to J . D . Power . The average overall satisfaction among auto insurance shoppers is 676 on a 1,000-point scale .
As prices have risen , carriers have also been pulling back on discount opportunities , with usage-based insurance ( UBI ) programs only offered to 15 % of insurance shoppers this year , compared to 22 % a year ago . And customers enrolling in UBI programs show just a 6-point increase in price satisfaction this year , a significant drop from the 32-point difference in 2023 .
“ After the past few years of steady auto insurance premium increases , customers are no longer passively keeping an eye out for a better deal ," said Stephen Crewdson , senior director , insurance business intelligence at J . D . Power . “ Instead , they are actively seeking new carriers to offset these rising costs . However , with rising premiums across the country and fewer insurers explicitly offering usagebased insurance — or UBI plans — during the quoting process , insurance shoppers are not finding many alternatives ."
Electric vehicle ( EV ) owners are less satisfied with their auto insurance purchase experience than customers with gas-powered vehicles . Thanks to EVs being more expensive to insure and lower satisfaction with the EV quoting process , the average purchase experience satisfaction score among EV owners is 663 , 16 points lower than gas vehicle owners .
The study also found that more than 1 in 3 customers are interested in purchasing embedded insurance , which is auto insurance provided directly through the car dealer or manufacturer . •
AnneMarie McPherson Spears is a news editor for the Big I ' s IA magazine .
30 KANSAS INSURANCE AGENT & BROKER