Regionally, policy shopping was up in Q4 in both the West (13.6%) and Northeast (11.5%) from the previous quarter but decreased in the Midwest (12.5%) and stayed flat in the South at 14.4%. (Credit: Dragonstock/Adobe Stock)
According to the Q4 2024 J.D. Power LIST Report, customers in Q4 matched the record shopping rate set in Q2 2024 at 13.3%. It also managed to tie the record for the highest switch rate in the history of the LIST Report, set in the previous quarter, at 4.2%.
Policy switching peaked in October, with 4.7% of customers reporting they had made the jump to a new carrier in the last 30 days. The lowest shopping rate of the quarter was recorded in December at 12.8%. The report notes that the findings for Q4 show a break in the cycle set into motion in 2023 of higher shopping rates in the first half of the year, followed by lower rates in the second half.
“Indeed, lesser rate activity (with some insurers not taking rate or even decreasing rates in select cases) has allowed consumers to find the lower premium they have been looking for over the last couple of years, unleashing a wave of shopping and switching not seen before in the personal lines auto industry,” the report reads.
Regionally, policy shopping was up in Q4 in both the West (13.6%) and Northeast (11.5%) from the previous quarter but decreased in the Midwest (12.5%) and stayed flat in the South at 14.4%.
J.D. Power expects elevated policy shopping and switching to continue through early 2025 as customers hunt for lower premiums.
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