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New J.D. Power Survey Shows Consumers Changing Auto Insurance to Save Money — What Makes it a Smart Financial Move? – GOBankingRates

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The shift from commuting to work to working from home during the pandemic was an unexpected financial blessing for most, especially when gas prices were at their peak.

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For drivers, working from home meant saving time and money by avoiding lengthy commutes. With these becoming a daily reality again, more people are rethinking their car use and looking to save money.

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Car insurance is a necessity for drivers, but once settled, many drivers remain loyal to their chosen insurance company — even if they aren’t getting the best deal. According to a recent J.D. Power report, more drivers are now shopping for better auto insurance rates (and switching insurance companies to save money).

In its Q2 2022 Quarterly Shopping List Report, J.D. Power claims that drivers are comparing quotes and are changing insurance more often, according to Fox Business. There has been an 11.8% increase in the rate at which drivers were given new auto insurance quotes as compared to 2021 Q2. Additionally, in the second quarter of 2022, customers switched insurance providers at an increased rate of 3.6% year-over-year.

According to J.D Power’s Insurance Loyalty Indicator and Shopping Trends (LIST), Kemper, Progressive, ACG, National General and GEICO are the providers with the lowest levels of customer loyalty, while drivers who insure with Amica, USAA, Erie, NJM and MAPFRE are less likely to switch.

Simply put, having the option to switch insurance companies is a consumer-friendly practice which allows for more competitive pricing. It is always wise for insurance purchasers to seek the best deal possible, despite sentiments of company loyalty to any given insurer.

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Pay-as-You-Go and Telematics-Based Car Insurance on the Rise

Pay-as-you-go insurance is also becoming more popular, as is telemetry, according to the study. By wirelessly tracking one’s driving patterns, telematics can monitor safe driving and provide a potentially better insurance premium rate.

“More consumers are warming to the idea of using a telematics tool to enhance safe driving, while also lowering costs,” said Michelle Jackson, TransUnion exec. TransUnion collaborated with J.D. Power on the Quarterly Shopping List Report. “Consumers are shopping for lower premiums, better coverage and superior service from their insurer,” Jackson added.

According to TransUnion’s year-over-year trends, the …….

Source: https://www.gobankingrates.com/saving-money/car/new-jd-power-survey-consumers-changing-auto-insurance-save-money/

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