Auto Insurance Shopping and Switch Rates Reach New Highs as Premiums Surge, J.D. Power Finds
State Farm Ranks Highest among Large Insurers in Providing Satisfying Shopping Experience; The Hartford
Ranks Highest among Midsize Insurers
TROY, Mich.: 27 April 2023 — The nation’s auto insurers are locked in a vicious cycle of inflation, risingpremiums and steadily increasing customer defection rates. The result, according to the J.D. Power 2023
U.S. Insurance Shopping Study,SM released today, is a sharper focus on saving money as large numbers ofauto insurance customers shop for new policies and switch to new carriers, largely based on price.
“Auto insurance customers are starting to shop for insurance like they shop for gas,” said StephenCrewdson, senior director, insurance business intelligence at J.D. Power. “They are taking a much more
active stance in seeking out plans that fit their needs and their budgets, which could have a serious longterm effect on carriers that have been working for years to build lifetime value through bundling and otherinitiatives. In the near term, this shopping trend manifests itself in increased customer interest in usagebased insurance (UBI) plans and some reshuffling of market share among the top carriers.”
Following are some key findings of the 2023 study:•Auto insurance shopping increases while customer satisfaction stagnates: Average overallsatisfaction among auto insurance shoppers is 861 (on a 1,000-point scale), which is flat from ayear ago, even though shopping and switching rates have increased in the same period. The 30-day
average shopping rate reached 13.1% in March 2023, the highest rate since June 2021 and well
above the 2021 average of 11.4%. The 30-day average switch rate hit 4.1% in March 2023, which
compares to an average of 3.4% for all of 2021.

•Price hikes spur new-policy shopping rates: Auto insurance costs rose 14.5% in February 2023,
more than twice the rate of inflation (6%), making auto insurance account for a steadily increasing
share of consumer discretionary spending. Accordingly, among those shopping for reasons ofprice, 44% say they are price checking and 42% say they are being spurred by a rate increase.
Similarly, 41% of those shopping because of a rate increase say that their rate increased 20% ormore.

•UBI starts to go mainstream: UBI programs, which use telematics software to monitor a customer’s
driving style and assign rates based on safety and mileage metrics, are now offered to 22% of
insurance shoppers and are purchased 18% of the time. Those numbers are up from a 16% offer
rate and a 12% purchase rate in 2020. When carriers offer a UBI option, customer satisfaction
increases 6 points.

•Progressive gains market share as GEICO slows: GEICO raised its rates significantly above industry
average throughout much of the second half of 2022 while Progressive raised rates in the firstquarter of 2022 and then registered lower-than-average increases during the second half of theyear. During the same period, Progressive posted a notable gain in market share, becoming thesecond-largest auto insurer in the United States, ahead of GEICO and behind State Farm.

jdpower.com/businessStudy Rankings
State Farm ranks highest among large auto insurers in providing a satisfying purchase experience for athird consecutive year, with a score of 877. Liberty Mutual (865) ranks second and Nationwide (861) ranks
third. The segment average is 861.
The Hartford ranks highest among midsize auto insurers for a second consecutive year, with a score of887. Erie Insurance (878) ranks second and Automobile Club of Southern California (AAA) (870) ranks
third. The segment average is 863.
Large insurers have direct premiums written of $4.5 billion or more in personal lines auto, while midsize
insurers have direct premiums written of $1 billion-$4.499 billion in personal lines auto.
Now in its 17th year, the U.S. Insurance Shopping Study captures advanced insight into each stage of theshopping funnel and is based on responses from 10,845 insurance customers who requested an auto
insurance price quote from at least one competitive insurer in the previous nine months. The study wasfielded from March 2022 through January 2023.
For more information about the U.S. Insurance Shopping Study, visit
https://www.jdpower.com/business/resource/jd-power-us-insurance-shopping-study.
See the online press release at http://www.jdpower.com/pr-id/2023036.
About J.D. PowerJ.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer inthe use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understandconsumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions
with brands and products for more than 50 years. The world's leading businesses across major industries
rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’sbusiness offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found atJDPower.com.
Media Relations Contacts
Geno Effler, J.D. Power; West Coast; 714-621-6224; media.relations@jdpa.com
John Roderick; East Coast; 631-584-2200; john@jroderick.com
About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/pressrelease-info###NOTE: Two charts follow.

Year / Project / Study Name

J.D. Power
2023 U.S. Insurance Shopping StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

Large Insurers
State Farm877

Liberty Mutual

865

Nationwide

861

Segment Average

861

GEICO

857

Allstate853

Progressive853

Travelers

848

Farmers

846

USAA^

874

Note: ^Brand is not rank eligible because it does not meet study award criteria.
Source: J.D. Power 2023 U.S. Insurance Shopping Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Insurance Shopping StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)Midsize Insurers
The Hartford

887

Erie Insurance

878

Automobile Club of Southern California (AAA)

870

American Family

867

Mercury

866

Automobile Club Group (AAA)865

Segment Average863

Auto-Owners Insurance

862

National General

858

CSAA Insurance Group (AAA)841

Safeco840

Source: J.D. Power 2023 U.S. Insurance Shopping Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.