Survey: Auto Insurance Shoppers Get Multiple Quotes

The average auto insurance customer gathers three competitive quotes while shopping for a new carrier, according to a J.D. Power and Associates survey released today.

And while the majority of insured shoppers remain with their current carrier, 33 percent will switch, the survey also said.

The study found that while 33 percent of consumers who shop because of price ultimately switch, nearly 75 percent of consumers who shop because they have experienced poor customer service switch carriers.

"This suggests that when a customer becomes dissatisfied with their incumbent carrier, they are more motivated to shop and switch," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. "In contrast, while many shop to verify they are getting a competitive price, this group is less likely to switch insurers."

The study identifies the elements shoppers seek from an insurance provider to better assist carriers in understanding their relative strengths and weaknesses, which can ultimately increase their market share.

Three key stages, which are collectively described as the purchase funnel, are identified within the shopping process: awareness, requesting a quote and purchase decision.

"By increasing performance in brand awareness, the number of quotes issued or close rates, a carrier can focus attention on the specific competitive issues that impact their growth," said Mr. Bowler.

The study also compares the relative success of 20 major insurance carriers in providing a satisfying purchase experience for customers. Quote rates among shoppers who are familiar with a particular carrier range from 5 percent to 43 percent, and close rates range from 7 percent to 47 percent.