(Digital Insurance) - An increase in inflationary pressures such as the rise in gas prices, the acceleration of extreme climate events and the soaring cost of manufactured goods have caused insurance rates to rise to record levels this year.
This increase in the price of policies has led many consumers to leave their old insurance companies and shop for new policies, according to JD Power’s Loyalty Indicator and Shopping Trends (LIST) study. The study found an 11.8% jump in insurance quote rates across the nation, with 3.6% of consumers surveyed switching insurance companies from Q1 to Q2. JD Power partnered with consumer credit reporting agency TransUnion to gauge consumer loyalty among insurance firms.
According to the TransUnion survey, Progressive and USAA were the biggest losers during Q2, with both companies losing the most consumers to industry rival Geico. The shift from insurance providers like USAA to cost-centric insurance companies like Geico showcases that consumers are more interested in companies that can provide competitive prices rather than other factors such as comprehensive coverage.