Consumer satisfaction drops amid auto insurance rate hikes, according to JD Power study

Drivers are increasingly becoming dissatisfied with their car insurance providers as rates rise, according to the latest findings from J.D. Power. The consumer research firm's 2022 Insurance Shopping Study found that rate hikes are being driven by a 41% increase in used car prices, pushing up vehicle replacement and repair costs in addition to forcing insurance companies to raise rates.

"A perfect storm of record-high replacement costs, increased frequency and severity of collisions and an economic outlook that suggests this situation won’t change anytime soon is forcing a major industry disruption," Marty Ellingsworth, J.D. Power's executive managing director of P&C insurance intelligence, said. "In the near term, that disruption is manifesting itself in very low customer satisfaction with price and high rates of new policy shopping. 

He added that looking ahead, the disparity could "be the catalyst to significant adoption of usage-based insurance," which he says could be the solution for insurers to build loyalty with their customers amid the current status of the economy.

If you're looking lower your auto insurance rate, shopping around for a new provider could help you do just that. Visit Credible to find a quote for your personalized auto insurance rate on an auto insurance policy with car insurance discounts without affecting your credit score.

NEW VEHICLE PRICES DROP FOR THIRD STRAIGHT MONTH, BUT DRIVERS STILL PAYING OVER STICKER PRICE: DATA

Who's switching car insurance providers the most?

As the cost of auto insurance rises, many consumers are looking elsewhere for lower rates and driving a surge in new-policy-shopping activity, according to J.D. Power.

The average overall satisfaction score among those shopping for car insurance quotes was 862 on a scale of 1,000, the firm's study found. This was down six points from last year; six of the nine largest auto insurers — along with six of the 11 mid-sized insurers — saw drops in purchase experience satisfaction so far this year. 

At the beginning of 2022, the rate of drivers shopping for new insurance was down compared to the year prior. But that changed in March and April, as rate increases became more common. The largest reasons that drivers switched insurance during this time, according to the study, were proactive price-checking and rate increases.

Among those shopping 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 look for new insurance due to prices, the study found, versus just 41% of Gen Z shoppers. 

If you are looking to switch auto insurance providers, using an online marketplace to compare multiple options can help you save money. Visit Credible to compare multiple auto insurance providers at once and compare coverage options to choose the one with the best car insurance rates for you.

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The best car insurance companies when it comes to customer service

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

Overall, the following are the rankings of large auto insurance providers for their consumer satisfaction: 

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

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

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