He observed, "Although several carriers in the industry--including Auto-Owners, GEICO, Liberty Mutual, Progressive and Travelers--have managed to grow their customer base in this challenging economic climate, their growth comes at the expense of other insurers in the mature U.S. personal auto insurance market. As such, keeping customers on board is absolutely critical for the long-term profitability of an insurance carrier."

The survey found that those with incomes of $100,000 or more a year are more likely to stick with their carrier--a total of 92 percent according to the survey. The retention rate drops slightly to 90 percent for those with income between $50,000 and $99,999. The retention rate dropped to 86 percent for those with income of less than $50,000.

The results are based on surveys of 275,000 auto insurance customers evaluating more than 30 insurance carriers across the industry.

J.D. Power said the survey found 30 percent of households with annual incomes below $50,000 shopped for a new carrier, and 45 percent of those customers eventually switched. By contrast, only 26 percent of those making $100,000 or more shopped for a new carrier, with only 31 percent making a switch.

The survey found that those who bundle their insurance with either homeowners or rental insurance policy were high. Retention rates averaged 95 percent among those customers who bundled their home and auto polices and 92 percent among those who bundled their auto and rental policies. The retention rate was lower for mono-line auto customers at 83 percent and 85 percent for those who chose not to bundle.

The difference in gender appears to play a minor role in retention rates, with 90 percent of males retaining the same carrier and 89 percent of females deciding not to change carriers.

Married insurance buyers (91 percent) were more apt to stick with the same carrier as opposed to single people (87 percent). Divorced people fell in middle at 89 percent.

Mr. Bowler noted that retention rates are important to carriers because a 1 percent improvement can amount to tens of millions of dollars over a period of time.

According to HighlineData, a unit of Summit Business Media, the parent company of National Underwriter, the top personal lines auto insurer is State Farm with 18 percent of the market, followed by Allstate at 11 percent. Berkshire Hathaway (GEICO) is third at 8 percent, and Progressive is fourth at 7 percent.

Rounding out the top 10 in order are Zurich (Farmers Group Inc.), Nationwide, Liberty Mutual, USAA, American International Group and American Family Insurance. Travelers is ranked 11^th and the Hartford is ranked 12^th.

Recently, AIG sold its personal lines auto insurance division, 21st Century, to Zurich's Farmers Group.

Responding to the survey results, Leonard C. Brevik, executive vice president and chief executive officer of the National Association of Professional Insurance Agents, commented in an e-mail: "These survey results identify another compelling business opportunity for main street agents. As carriers seek to improve their retention rates in this increasingly competitive environment, the independent agent system provides the most effective and efficient distribution channel for their products. And when times get tough, consumers seeking the best value for their insurance dollar can find it by consulting a main street insurance agent."

Dave Evans, senior vice president for the Independent Insurance Agents & Brokers of America, responded in an e-mail saying: "The J.D. Powers study validates the presumption that during tough economic times, consumers are more likely to switch carriers to save money. It also demonstrates the value of the independent agency distribution channel to carriers because of the relationships they have with their customers."