J.D. Power: Auto policy shopping continued to decline in Q4 2023
The decrease in policy shopping may mean consumers have begun to accept recent rate increases.
The quarterly auto policy shopping rate fell from 12.3% in Q3 2023 to an even 12% in Q4 2023, according to the latest J.D. Power Quarterly Shopping LIST Report. Auto policy shopping saw its first dip in a year in Q3 2023 — though shopping remained higher in this quarter than it was in Q3 2022.
The continued decrease in shopping in Q4 may indicate that consumers are beginning to come to terms with higher rates, and opting to stay with their current insurer than compare quotes. Even with increasing premiums, the number of consumers who actually switched auto insurers fell in Q4, as well.
J.D. Power’s report also notes the impact made by GEICO pulling back from the market, stating: “After being the leading destination for at least one insurer’s defectors each quarter of 2021 and 2022, they achieved this in only one quarter in 2023 (Q3, by being the leading destination for USAA defectors).”
When comparing the regions of the U.S., the quarterly quote rate fell by 9.3% in the Northeast, 11.5% in the West and 13.2% in the South. The Midwest was the only area that saw an increase in quote rates, climbing 12.2% in Q4.
According to data from TransUnion, the year-over-year change in auto and property insurance shoppers remained elevated from Q3 to Q4. The report contributes the continued high shopping rates to premium increases, stricter underwriting and growing new vehicle sales.
A full copy of J.D. Power’s Q4 2023 Shopping LIST Report can be downloaded here.