2012 U.S. Insurance Shopping Study Results
Consumers appear to have made a remarkable change of attitude when it comes to shopping for auto insurance. According to the J.D. Power and Associates 2012 U.S. Insurance Shopping Study, the percentage of consumers who shop around for other insurers when it comes time to renew their policies has dropped to its lowest point in 5 years. On the other hand, the percentage of those shoppers who do switch carriers has risen to an historic high.
The study, which was conducted in January and February of this year, reports that 25% of respondents shopped for a new auto insurer in the past 12 months: only about three-quarters of the previous year's figure of 33%. However, of those who looked for another provider, 43% report switching, compared to 40% in 2010. The study shows that in the past year, the average consumer who switched auto insurance providers saved $359: a drop of nearly 13% from the average savings of $412 that was reported in 2010.
Overall, although the percentage of shoppers who switch insurers has risen slightly, consumer loyalty has also risen. The study suggests that buyers of auto insurance are more likely to stick with their current carriers, even as insurance companies increased their advertising spend by 12% in 2011 compared with 2010.
Insurers are also facilitating the process of online comparison shopping, making it easy for consumers to compare, decide, and purchase in one fairly short session in front of the computer. Of those survey respondents who shopped for a new policy in 2011, 52% began the process online, and 32% got their quotes entirely online. Seventy-three percent visited at least one insurer's website during the shopping process, and 34% stated that they prefer to buy a policy online.
The study shows that The Hartford achieves the highest score--857 points on a 1,000-point scale--of all auto insurance providers in customer satisfaction. Liberty Mutual was second with 850 points and American Family third with 845. The study measures customer satisfaction with distribution channel, policy offerings, and price.
The 2012 U.S. Insurance Shopping Study was based on responses from more than 16,100 shoppers who requested an auto insurance price quote from at least one competitive insurer in the past 12 months, and includes more than 50,000 individual insurer evaluations.
The study, which was conducted in January and February of this year, reports that 25% of respondents shopped for a new auto insurer in the past 12 months: only about three-quarters of the previous year's figure of 33%. However, of those who looked for another provider, 43% report switching, compared to 40% in 2010. The study shows that in the past year, the average consumer who switched auto insurance providers saved $359: a drop of nearly 13% from the average savings of $412 that was reported in 2010.
Overall, although the percentage of shoppers who switch insurers has risen slightly, consumer loyalty has also risen. The study suggests that buyers of auto insurance are more likely to stick with their current carriers, even as insurance companies increased their advertising spend by 12% in 2011 compared with 2010.
Insurers are also facilitating the process of online comparison shopping, making it easy for consumers to compare, decide, and purchase in one fairly short session in front of the computer. Of those survey respondents who shopped for a new policy in 2011, 52% began the process online, and 32% got their quotes entirely online. Seventy-three percent visited at least one insurer's website during the shopping process, and 34% stated that they prefer to buy a policy online.
The study shows that The Hartford achieves the highest score--857 points on a 1,000-point scale--of all auto insurance providers in customer satisfaction. Liberty Mutual was second with 850 points and American Family third with 845. The study measures customer satisfaction with distribution channel, policy offerings, and price.
The 2012 U.S. Insurance Shopping Study was based on responses from more than 16,100 shoppers who requested an auto insurance price quote from at least one competitive insurer in the past 12 months, and includes more than 50,000 individual insurer evaluations.