Consumers Saved $300 When Switching Auto Insurers, Study Says | Edmunds

Consumers Saved $300 When Switching Auto Insurers, Study Says


Just the Facts:
  • Consumers saved an average of $300 when switching auto insurers in the past 12 months, according to the J.D. Power 2014 U.S. Insurance Shopping Study released on Thursday.
  • Poor experience with their insurer is the leading reason customers shop for, and ultimately switch to a new auto insurance company.
  • "Increases in premiums do not drive shopping as much as poor experience," the study said.

WESTLAKE VILLAGE, California Consumers saved an average of $300 when switching auto insurers in the past 12 months, according to the J.D. Power 2014 U.S. Insurance Shopping Study released on Thursday.

Poor experience with their insurer is the leading reason customers shop for, and ultimately switch to a new auto insurance company.

"Increases in premiums do not drive shopping as much as poor experience," the study said.

However, rate increases of more than $200 can triple the rate of customers who switch insurers.

The longer customers had been with their previous insurer, the greater the savings when they switched carriers, likely because they had been experiencing rate hikes.

"Customers who were with their prior insurer for 11 years or longer before switching save an average of $426 per year on their premiums, compared with $291 among those who had been with their previous insurer less than two years before switching," researchers said.

The study is based on responses from more than 16,900 shoppers who requested an auto insurance price quote from at least one competitive insurer in the past nine months.

Erie Insurance ranks the highest among auto insurers in providing "a satisfying purchase experience," the study said. MetLife and State Farm rank 2nd in a tie.

Edmunds says: An interesting look at what a consumer can save when switching auto insurers and one that provides those thinking of switching with some solid baseline information.

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