Drivers Rarely Shop For Cheaper Insurance: Study

Drivers Rarely Shop For Cheaper Insurance: Study

According to a recent study, less than 10 percent of drivers will compare insurance rates when it’s time to renew their policy.

For the most part, drivers remain loyal to their current insurers despite overall customer satisfaction trending downward in the industry. In addition, more than 20 percent of new insurance shoppers are turning online to find the right auto insurance policy for them.

“As rate increases continue to drive customers to shop around for the best price, insurers need to provide a seamless shopping experience, including competitive websites with quote compatibilities and a satisfying on-boarding experience to acquire new customers,” said Jeremy Bowler, senior director of the global insurance practice at J.D. Power.

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The report comes from J.D. Power’s 2014 U.S. Insurance Shopping Study which revealed that the auto insurance customer retention rate is at an impressive 97 percent with only three percent of customers switching insurers and eight percent of them shopping for other policies.