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Few switch car insurance carriers

By Tara Baukus Mello · Bankrate.com
Wednesday, October 16, 2013
Posted: 4 pm ET

Few people switch car insurance carriers even though customer satisfaction is on the decline, according to the first wave of results from the recently released J.D. Power 2014 U.S. Insurance Shopping Study.

Customer satisfaction on price declined to 808 from 821 (on a 1,000-point scale) since the 2013 study, yet 97 percent of customers chose to stay with their carrier.

Only 3 percent of auto insurance customers decide to switch insurers, but when they do, they typically save money on car insurance. Customers who switch save $387 annually on average -- a nearly identical figure to the one reported in the 2013 study, which showed an average savings of $386.

Buying auto insurance online is becoming more common, with 20 percent of new buyers purchasing car insurance that way. As a result, insurance companies that don't allow online quotes for auto insurance are missing one in five new customers.

Did you buy or do you pay for your car insurance online? Do you look at insurance rates regularly to compare prices?

Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter: @SheDrives.

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2 Comments
Jennifer Seate
October 17, 2013 at 5:13 pm

I'm surprised customer satisfaction numbers have not declined more. It seems insurance carrier rates continue to increase, payouts are less and the insurance companies care less about their long term clientele.

I fall prey to wanting to switch companies, but I have found cheaper rates do not mean you have the same coverage. We should be sure to buy the insurance coverage we need to protect us and our loved ones, even if it is more.