The 50 Largest Auto Insurance Companies – Low Cost Advisor
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Switching car insurance companies is on the rise as drivers who face rising inflation seek avenues to better deals.
An estimated 11.4% of consumers surveyed said they comparison shopped car insurance quotes in the fourth quarter of 2021—and 3.5% said they switched companies, according to J.D. Power’s “Auto Insurance Loyalty Indicator & Shopping Trends” report.
J.D. Power said the top reason for shopping and switching is searching for the best value as insurance premiums have increased and many drivers aren’t driving as much.
That rate of switching companies shows a continued return to patterns seen before the Covid-19 pandemic. At the outset of the pandemic, auto insurance shopping activity surged: 45% of auto insurance consumers shopped for new car insurance quotes, reduced coverage, switched companies or even dropped their policies.
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J.D. Power’s report found that higher rates are especially nudging people with poor credit to switch insurance companies. An estimated 6.2% of people surveyed with poor credit switched insurers in the fourth quarter of 2021. That’s compared to just 2.8% of those with excellent credit. Car insurance rate increases due to poor credit can be significant.
Another trend found in the report is that cost-conscious consumers with fair or poor credit who are switching car insurance companies are often more interested in usage-based insurance policies than drivers with better credit. Usage-based insurance policies are suited for people who are very good drivers and calculate rates based partly on how well you drive.
J.D. Power also measures consumer loyalty to car insurance companies each quarter. In Q4 2021, these companies had increased consumer loyalty compared to the previous quarter:
- The Hanover
And these auto insurers saw a decrease in customer loyalty:
- National General
- COUNTRY Financial
J.D. Power also found that Geico is the car insurance company that offered the most quotes in most regions in that quarter. The top providers of car insurance quotes by region in the fourth quarter were:
- South: Geico
- West: Geico
- Midwest: State Farm
- Northeast: Geico
An additional factor besides price that may play into whether a customer stays with a car insurance company is their satisfaction with how the insurer handled an insurance claim. J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study found that The Hartford ranks best in overall claims satisfaction, followed by Erie Insurance and Auto Club of Southern California Insurance Group.
The Largest Auto Insurance Companies
Where does your auto insurance company rank in terms of size? See the chart below to find out how the largest insurers compare in market share for private passenger auto insurance.