Research has suggested that a lower number of drivers are considering changing insurance companies.
The results of a survey performed by J.D. Power and Associates, the market research company, have indicated that the number of car owners who are using online auto insurance tools to change their insurers has been dropping.
Despite the fact that these carriers are spending an increasing amount in order to draw new business, there are fewer people seeking to leave their current provider. According to the results of the survey, in 2011, one quarter of drivers shopped around to see if they could find an insurer that would better suit their needs and expectations. This is a significant drop from 2010, when one third of drivers did the same thing.
The survey included over 16,000 respondents who participated in January and February 2012.
The research did not indicate the reason that people were (or were not) shopping at online auto insurance comparison sites. What it did suggest, was that among those who were looking into other insurers, 43 percent switched their carriers last year. Despite the fact that fewer of them were shopping, it was an increase in the number of consumers who switched companies, as only 40 percent changed carriers in 2010.
Approximately one in every three drivers said that they had used online auto insurance quotes to help with their decision, and approximately the same number said that the internet is their preferred way to purchase a policy. The number of the drivers who actually used the internet to make their purchase was not identified.
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This is one of the most competitive insurance sectors in the entire industry in the United States.
The report shows the highly competitive nature of the auto insurance industry. According to the report, approximately 52% of auto insurance shoppers begin their search for coverage online, with 73% of these consumers visiting an insurance company’s website at least once. Additionally, 32% of auto insurance shoppers rely solely on the Internet to find quotes for coverage, with 34% claiming that they would prefer to purchase auto insurance policies online.
Among the most prominent advertisers in that study – which looked into the satisfaction customers had with offline and online auto insurance shopping – were those that had received the worst scores.