Americans are choosing GEICO and Progressive auto insurance, says JD Power

Auto insurance - auto insurance policy

At the same time, they are leaving Allstate and State farm for their vehicle coverage.

A new JD Power and TransUnion collaboration study has shown that Americans are increasingly choosing to purchase their auto insurance from Progressive and GEICO. These two insurers saw the largest growth in this year’s second quarter.

This was revealed in the Quarterly Shopping List Report which examines rates of quotes and switches.

Among all the major American auto insurance companies, GEICO saw the largest quote volume. Allstate saw the second largest quote volume, followed by Progressive and State Farm in third and fourth places, respectively. GEICO is the most popular auto insurer in the Northeast, South, and West, which has been consistently the case. It was in those regions that it also solidly held the top position for being the most quoted insurer in Q2 2021. The Southern US most commonly sought its quotes from Progressive.

The report showed that Progressive was able to snag the most vehicle coverage business from consumers who decided to switch from another insurer. Progressive has taken hold of a 45.2 percent market share within the last half decade.

During that same five years, The Hartford saw the largest decline in market share, losing hold of 35.3 percent. Other insurers to see a drop in their market share included Nationwide (35.1 percent decrease), Farmers (16.9 percent decrease), and State Farm (12 percent decrease).

State Farm, Allstate, GEICO, and Travelers auto insurance customers were most likely to switch to Progressive.

American Family Insurance policyholders often switched their coverage to Allstate, while customers leaving Farmers, USAA, and Progressive often headed over to GEICO. When State Farm customers took on new customers switching from elsewhere, it was most often from Nationwide and Liberty Mutual.

In terms of customer loyalty during the second quarter of 2021, USAA, Amica, The Hartford, Kemper, Nationwide, and State Farm customers stuck around the most. Auto insurance - auto insurance policyThe least loyal customers were from National General, ACG, Progressive, SafeCo, and Auto Owners. This will be an interesting trend to monitor as post-pandemic driving starts to bring road use closer to where they were in pre-pandemic times.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.