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Allstate, GEICO, State Farm… Where are customers going as they buy more auto insurance?

Report produced by JD Power in partnership with TransUnion suggests consumers are taking note of historic price hikes by insurers, forcing them to shop for better deals doing. The shopping rate in the fourth quarter of 2022 was 12.1%, characterized by busy shopping in November and finally he calmed down by December.

According to JD Power, U.S. auto insurance buying activity in the fourth quarter of 2022 was very strong, with the numbers being some of the highest seen in more than two years of producing these reports.

It wasn’t just auto insurance purchases that increased last quarter. Switching rates also surged during the period. The report shows that just over 4% of his auto insurance customers have changed insurers.

JD Power also tracked switching trends by the insurer’s biggest competitors and found that:

The report also tracked customer loyalty over time. “Loyalty” was tracked based on the percentage of customers of one insurer who purchased from other insurers. The lower the percentage of customers purchasing from other carriers, the more “loyal” the customer base. Here is the list:

Higher Loyalty:

  1. USAA
  2. maple
  3. NJMMore
  4. Amica
  5. Erie

Loss of Loyalty:

  1. national general
  2. Hannover
  3. progressive
  4. Country
  5. Liberty Mutual

Interestingly, the JD Power report also commented on telematics. Telematics is a technological breakthrough that many believed would solve the high-cost auto insurance crisis. According to the report, telematics adoption appeared to stabilize and level off in Q4 2022 despite strong adoption earlier in the year. Citing data from TransUnion, JD Power noted that his 40% of consumers who chose to have the technology in their vehicles experienced an increase in charges.

Another report also recently published by ValuePenguin lists which U.S. states pay the most for auto insurance and which are the cheapestAccording to the report, Michigan, Florida, and Rhode Island were the top three states with the highest auto insurance premiums, while Vermont, Maine, and Idaho were the top three states with the cheapest. .

What do you think about the increase in US auto insurance buying activity? Comment out in the section below.

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