Tough economic times inspire loyalty in U.S. auto insurance consumers

Ninety per cent of auto insurance shoppers are retained by their current provider, according to J.D. Power and Associates’ 2009 Insurance Shopping Study.
The survey examined the purchase behaviours and overall satisfaction of U.S. buyers shopping for a new auto insurance provider.
The survey is based on responses from more than 13,500 consumers who requested an auto insurance quote from at least one competitive insurer in the past 12 months. It also includes 63,517 unique carrier evaluations, a J.D. Power release says.
The study was conducted from February to March of 2009.
Researchers found that 28% of insurance customers shopped for another provider, compared with 36% in 2008.
“The decline in the number of customers shopping and switching insurance providers may in part be due to the current economic situation, as many customers are employing a hunker-down mentality,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.
The study also found price is the reason cited most often for shopping for a new auto insurance provider. Among those customers who mentioned price as a shopping trigger, 66% said they just wanted to see if they were getting the best price; 25% cited an actual price increase; and 5% said they shopped because they received an unsolicited offer from another insurer.
Ten per cent of shoppers reported that they did not purchase from the brand that offered the lowest price among the quotes they received, Bowler noted. “While price may catch the attention of potential insurance customers, low prices alone won’t retain customers in the long run without a high level of service,” a J.D. Powers press release notes.