Customer service, price key factors in carrier switch

Customers in the United States looking around for car insurance will typically gather, on average, three competitive quotes, according to the J.D. Power and Associates 2007 Insurance Shopping Study released this week
One-third of these shoppers will switch carriers; of these, 33% said they would switch because of price, while almost 75% said they would also switch because of poor customer service, the survey reveals.
This suggests that when a customer becomes dissatisfied with their incumbent carrier, they are more motivated to shop and switch, Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, said in a release. In contrast, while many shop to verify they are getting a competitive price, this group is less likely to switch insurers.
The study compares the relative success of 20 major insurance carriers in providing a satisfying purchase experience for customers. Quote rates among shoppers who are familiar with a particular carrier range from 5% to 43%, and close rates range from seven per cent to 47%.
Additionally, more than 50% of auto insurance shoppers also shop for other types of insurance coverage. Nearly 40% of shoppers look for auto and homeowners insurance bundles. Consumers who shop for multiple products generally switch at a higher rate than those who only shop for auto insurance.
The study identifies the elements shoppers seek from an insurance provider to better assist insurance carriers in understanding their relative strengths and weaknesses, which can ultimately increase their market share.
Three key stages, collectively described as the purchase funnel, are identified within the shopping process:
awareness,
requesting a quote, and
purchase decision.