The majority of Americans who were considering dropping their auto insurance providers cited price as the main motivator, according to a survey by data company AnalyticsIQ.
Fifty percent of respondents who were thinking about dropping their auto insurers reported that their policies were too expensive and 37% said they would switch carriers if they found a better deal.
Almost all respondents said they had each of the major policy coverage types including liability, collision, medical payments, personal injury and comprehensive, as well as uninsured and underinsured, the survey said.
Among respondents who did not have these particular coverage types, 37% said they opted out of coverage because it was too expensive.
The average American spent $1,705 on auto insurance in 2022, according to Insurify's 2022 auto insurance trends report. That rate is up 4% from 2021 and 17% from 2020.
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Perception of auto insurance affordability impacts satisfaction ratings
Motorists who found their auto insurance policies "very affordable" reported significantly higher satisfaction ratings than those who said it was "way too expensive," AnalyticsIQ reported.
"Moreover, level of satisfaction predicted one’s projected likelihood of switching insurance carriers," AnalyticsIQ said in its survey report. "As satisfaction scores decreased the likelihood of saying ‘yes’ or ‘maybe’ to switching carriers increased."
Across the board, many customers have had some issues with their auto insurance policies in 2022. Customer satisfaction with auto insurance prices dropped "a significant five points from 2021'' to 769 out of 1,000, according to the J.D. Power 2022 U.S. Auto Insurance Study. Customer satisfaction with auto insurance providers fell to 834 in 2022 from 835 in 2021.
If you are considering switching auto insurance carriers, you can visit Credible to compare multiple options and find your personalized rate in minutes.
Interest in embedded insurance is growing
Embedded insurance, a form of bundling insurance into the purchase of a product such as a vehicle, is gaining interest despite its low adoption rate, AnalyticsIQ research showed.
Less than 1% of survey respondents said they had embedded insurance, but more than 87% said they would be interested in learning more about this type of coverage. The top reasons why people expressed interest in embedded insurance were lower overall costs and customized coverage. Other reasons included ease and convenience of transferring from one’s current policy to an embedded policy.
"Customers want peace of mind above all else," AnalyticsIQ said in its survey report. "That peace of mind comes from having confidence in knowing they are getting personalized coverage (with both breadth and depth) at a price point that works for their budget, as well as a convenient and accessible resource when the need strikes."
If you are struggling with rising prices and want to save money on your auto insurance, you could consider switching to a new provider to lower your monthly premium. Visit Credible to compare multiple car insurance providers at once, without affecting your credit score.
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