In the latest report by J.D. Power, the national auto insurance shopping and quoting rate has reached unprecedented levels from April to June. However, with many insurers nearing or achieving rate adequacy, this trend may soon stabilize, leading to reduced shopping activity in the future.
The report highlights that May matched the study’s record high for monthly shopping rates at 13.5% of U.S. drivers, a figure previously set just two months prior. During the same period, 4.2% of drivers switched insurers, marking another all-time high for the study, which has been tracking data since September 2020.
The report notes that rate filings hit a multi-decade peak in February, but subsequent filings for the remainder of 2024 indicate smaller increases compared to earlier in the year. As a result, the intensity of auto insurance shopping may decrease as rate hikes moderate.
For the second quarter of 2024, the national quarterly quote rate climbed to 13.3%, the highest rate recorded in nearly four years. The switch rate remained stable at 3.9%.
Regional data reveals that all areas experienced double-digit quote rates in the second quarter. The Southeast and South-Central regions led with 14.6% of drivers shopping for insurance, while the West and Midwest had rates of 13.2%. The East saw a rate of 10.7%.
The report also provides a breakdown of household types with auto insurance. Two-car, two-driver homeowners constituted 18.7% of insured households, followed by single-car, single-driver homeowners at 9.1%. Households with three or more cars and two or more drivers each made up 8.1%, and single-car, two-driver households represented 5.7%. Renters with one car and one driver accounted for 8.8% of insured households.
J.D. Power observes that despite the introduction of the insurance neighborhood concept two years ago, the same six household types remain predominant. However, the surge in insurance rates has notably increased the shopping and switching behavior, particularly among multi-vehicle and multi-driver households.
The report also ranks insurers by customer loyalty. NJM, Amica, USAA, MAPFRE, and Erie are recognized for higher customer loyalty, while National General, Kemper, Auto-Owners, ACSC, Mercury, and Progressive are listed as lower loyalty insurers. GEICO is noted as the top choice for customers leaving Allstate, Progressive, and State Farm.
