What drives auto insurance customer satisfaction? If you're speaking with an insurance customer in 2020, the answer will likely be convenience and value. That's according to the J.D. Power 2020 U.S. Insurance Shopping Study, which was released earlier this summer and offers insights on auto insurance shopping behavior. According to J.D. Power, the price factor measured in the study has increased by 54% since 2012, meaning cost drives more satisfaction in the purchase experience today than years ago. The study also found that customers have become generally more satisfied with their current insurer in all areas except price within the past decade. "Over the past decade, auto insurance costs have risen at two times the rate of inflation," Tom Super, head of property & casualty insurance at J.D. Power, said in a press release about the study. "That's consuming a larger share of discretionary income and playing an increasingly significant role in household finances. Add the effects of record-high levels of unemployment, and the 52% of auto insurance customers who say they plan to either reduce coverage, shop for another carrier or switch to another carrier because of COVID-19, and the outcome for the industry is clear — price is going to be a bigger factor." Insurance carriers concerned about customer retention also should pay attention to price, as more consumers chase competitive rates. Consider that 77% of auto insurance customers who participated in the study were actively shopping before the pandemic. "Customers who have a poor experience are eight times more likely to shop than those who do not, and brand perception remains critical," Super added. Discover the top midsize U.S. insurance carriers for customer satisfaction based on J.D. Power's U.S. Insurance Shopping Study in the slideshow above. |

Methodology

The J.D. Power U.S. Insurance Shopping Study sampled more than 14,300 insurance customers who requested an auto insurance price quote from at least one competitive insurer during a nine-month period. The study captures insight into each stage of the shopping process and measures auto insurance shopping, purchase behavior and purchase experience satisfaction in two categories: large insurers and midsize insurers. Related: |

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