A recent report from J.D. Power delves into what is driving customers to explore their auto policy options.
According to J.D. Power’s Q4 2022 Loyalty Indicator and Shopping Trends (LIST) report featured in PropertyCasualty360, switching carriers by consumers increased to 4.1% from 3.8% in Q3 2022 and 3.5% in Q4 2021, and auto insurance shopping increased to 12.1% across all regions of the United States.
In response to this increase in shopping, J.D. Power has outlined the five main factors driving customers to explore their vehicle policy options, and one of the primary factors is UBI is playing a bigger role in shopping:
Usage-based insurance (UBI) is increasing in popularity as customers look for ways to reduce their auto insurance costs. These telematics programs are driving some to break up insurance bundles, as they believe cost savings with a UBI policy would surpass the savings of bundling their home and auto policy with the same carrier.
J.D. Power reports about one-third of customers who participate in UBI are not actually saving any money on their auto premium, but these customers still reported being more satisfied (and more likely to renew) with their auto carrier.
To learn more about UBI visit: https://ims.tech/usage-based-insurance-for-personal-lines/