Auto Insurance Shopping Rises as Consumers Seek Better Rate

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Auto insurers have been forthcoming in their desire to achieve rates to match increases in claims costs and, so far in 2023, consumers are not standing by.

According to a quarterly report from JD Power, in collaboration with TransUnion, the quote rate for auto insurance in the first quarter of 2023 was 12.4% and the switch rate was 3.9%. The quote rate is a new high in the three-year history of JD Power’s quarterly loyalty indicator and shopping trends (LIST) report.

“A new record in our data series was seen in March as 13.1% of consumers reported shopping for auto insurance in the 30 days prior to responding to our survey,” said JD Power.

TransUnion data showed Gen X and Gen Z led the way in price shopping, and Western US was the most active for auto insurance shoppers.

JD Power noted that Progressive surpassed GEICO in 2022 to now hold the largest market share among personal auto insurers, and this latest quarterly report was the first to find that GEICO did not capture the largest share of any large competitor’s defectors.

“GEICO is struggling to maintain its share of customers in response to closing down sales channels in states where they were rate-inadequate,” said JD Power. “Progressive has benefited and is seeing increases in the number of customers who select the brand as their auto insurance carrier when they make a switch.”

Related: Rising Auto Rates Affecting ‘Bundle’ Strategy: JD Power

Among the top insurers, consumer loyalty was strongest for Erie, Amica, USAA, New Jersey Manufacturers (NJM), and MAPFRE. It was lowest for COUNTRY, National General, GEICO, Progressive, and Kemper, according to the report.

Trends Auto Pricing Trends

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