The best and the worst for car insurance

Only 25% of drivers seeking an estimate on the price of the insurance policy car made comparisons between two or more companies in the last 12 months, representing 8% less than in 2012 and the lowest percentage in the last five years.

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That’s the conclusion of the Study on Insurance Buy US 2012 (U.S. Insurance Shopping Study (SM)) Company J.D. Power and Associates, which surveyed more than 16,100 consumers who requested at least one payment calculation on an insurance policy for a new or used car the last 12 months, which included more than 50,000 individual assessments. The study was conducted between January and February 2012.

The study J.D. Power and Associates, which completed its sixth year, examines the behavior of consumers when looking for an insurance policy for their cars and evaluates the level of satisfaction with insurance companies on three main factors: (in order of importance): channel distribution, supply and price policies.

While only a quarter of consumers compared prices to save when buying an insurance policy, 43% switched supplier company, the highest level since it began evaluating the retention level in 2008 and an increase of 3 % compared to the 2011 study.

“Although fewer consumers took the time to find a better deal on the insurance policy of their cars, many are more willing to switch companies if they get a better price,” said Jeremy Bowler, Senior Global Director of Practice Insurance JD Power and Associates. “the increase in the proportion of consumers who change company suggests that those seeking a calculation on your new payment (quote) are more reluctant to change, perhaps because the direct result of savings, which has been reduced from an average of $ 412 in 2010 to $ 359 in the last 12 months. ”

Bowler highlighted the fact that the level of customer retention has increased while insurance companies are investing more money in advertising campaigns to encourage consumers.

According to industry data, auto insurance companies increased their advertising budgets by 12% in 2011 compared to 2010.

The insurance industry invested $ 5.700 million in advertising and promotions in 2011, but the increase in spending does not seem to have generated a considerable decrease in changing suppliers, “Bowler said.

The study of J.D. Power and Associates also found that 52% of consumers seeking payment calculations of their policies begin that process on the Internet and 73% visit at least one page of an insurance company.

Perhaps most significant thing is that 32% of consumers surveyed said they only sought information on the internet and 34% said they would prefer to buy your new policy through this medium.

“Consumers today expect to visit the website of a company and complete your purchase on a visit,” Bowler said. “In most cases, consumers can compare many policies online and narrow your search to what suits them. At that point, they can decide whether they need to speak with an agent or complete the online purchase.”

Then the ranking of consumer satisfaction survey by J.D. Power and Associates, which is based on a scale from 0 to 1.000 to qualify the shopping experience in general, supply and price policies, with each of the companies.

In this case, the company The Hartford had the best score with 857 points, followed by Liberty Mutual with 850 points and American Family with 845. The second digit indicates the ranking list of satisfaction (Power Circle Ratings) of J.D. Power and Associates 5 – Among the best, 4 – Better than most; 3 – Average, 2 – the rest.

The best and worst of insurance, The Hartford 857 (5), Liberty Mutual 850 (4) American Family 845 (4); Auto Club Group 842 (4) Nationwide 841 (4) Amica Mutual 839 (4) ; State Farm 839 (4), Erie Insurance 836 (4); MetLife 834 (4) Auto-Owners Insurance 832 (3); GEICO 832 (3); Ameriprise 830 (3); Auto Club Group of So. California 828 (3); Industry Average 828 (3); Safeco 825 (3); 21st Century 824 (3); Farmers 821 (3); Allied 820 (3); Esurance 819 (3); Travelers 819 (3); Allstate 817 (2) Exchange Insurance UNAS AAA 816 (2); Progressive 815 (2); GMAC 808 (2), Mercury 808 (2); * USAA 878 (5)

* USAA is an insurance provider only available to members of the Armed Forces of the United States and their relatives so I was not included in the general list.

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