Price not as high a priority for insurance shoppers: J.D. Power

When it comes to auto insurance shopping, the impact of price on new-buyer satisfaction has declined over the past year, according to a J.D. Power and Associates study.
Ten per cent of auto insurance shoppers did not select the company with the lowest quote, the J.D. Power and Associates 2010 U.S. Insurance Shopping Study found. In fact, some forfeited considerable savings.
The study is based on survey responses from 14,500 shoppers who requested an auto insurance price quote over the last 12 months in the United States.
Of those who didn’t select the lowest-priced insurer, 12% could have saved more than $250 if they had gone with the lowest quote.
While 76% of shoppers cite price as a reason they did not purchase a policy from a particular insurer, price accounted for only 28% of overall customer satisfaction. More important are policy offerings (29%) and distribution channel (43%).
“While competitive pricing is critical to closing the sale for most shoppers, insurers must perform on all elements of the purchase experience to gain and retain satisfied customers,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.
“In fact, past service experiences play a considerable role in the purchase decisions of retained customers, and in some cases, may even outweigh the appeal of a lower-priced competitor.”