Surge in Auto Insurance Costs Drives Record U.S. Shopping and Switching Rates

The latest J.D. Power 2024 U.S. Insurance Shopping Study reveals a sharp uptick in auto insurance costs, leading to increased shopping and switching behaviors among U.S. consumers. With auto insurance premiums climbing more than any other household expense as recorded by the U.S. Department of Labor Statistics Consumer Price Index, customer dissatisfaction is also on the rise. Nearly half (49%) of auto insurance customers are now actively searching for new plans, driven by continuous rate hikes over recent years.

The study highlights a notable disparity in satisfaction between electric vehicle (EV) owners and those with gasoline-powered vehicles, with EV owners experiencing lower satisfaction due to higher insurance costs. Furthermore, the availability of usage-based insurance (UBI) plans, which could offer savings based on driving behavior, has decreased, being offered to only 15% of shoppers, down from previous years.

The changing dynamics are also evident in market share adjustments, with State Farm and Progressive gaining traction, while GEICO sees a dip. The study ranks Erie Insurance as the top large auto insurer for customer purchase experience satisfaction. This trend of active shopping is not just a temporary shift but a significant movement that could reshape the auto insurance landscape in the U.S.