According to a recent report by JD Power, high gas prices and other inflation issues have caused more drivers to seek out new auto insurance in an effort to lower their rates.
The rate at which drivers received new auto insurance quotes increased 11.8% in the second quarter of 2022, and the rate of change increased 3.6%, according to the Quarterly Shopping List Report. JD Power.
“Even some of the major carriers are taking additional steps to remain profitable in this challenging environment,” JD Power said in its report.
The most loyal car insurance companies are Amica, USAA, Erie, NJM and MAPFRE. On the other side, vendors with lower loyalty rates included Kemper, Progressive, ACG, National General, and GEICO.
If you’re looking for ways to cut your auto costs, you might consider switching insurance providers. Visit Credible to find your personalized car insurance quote without affecting your credit score.
66% OF AMERICANS REDUCE DRIVING Amid HIGH GASOLINE PRICES: SURVEY
Consumers Consider Usage-Based Auto Insurance
As consumers consider switching auto insurance, they are looking to change their premium type to one with a usage-based program, the report says.
“As consumers seek lower premiums, they are increasingly turning to usage-based insurance programs to help mitigate increased mobility costs,” said JD Power. “Since LIST began tracking both purchases and overall UBI usage, we have seen a steady increase in adoption, especially by those in lower self-reported credit levels, a trend that is expected to continue as macro-economic pressures continue to impact consumers – especially those who are price-sensitive.”
During the first quarter, there was a 33% increase in the adoption of automatic telematics, according to TransUnion. This option allows companies to monitor consumer conduct to help determine their premium. The number of customers choosing this option increased from 49% to 65%.
“More and more consumers are on board with the idea of using a telematics tool to improve driving safety, while reducing costs,” said Michelle Jackson, senior director of personal lines market strategy at TransUnion. . “Consumers are looking for lower premiums, better coverage and superior service from their insurer.”
If you’re looking for ways to lower your auto insurance premiums, you might consider comparing multiple plans and providers. Visit Credible to compare multiple insurance options at once and choose the best coverage option for you.
CONSUMER SATISFACTION FALLS AMID AUTO INSURANCE RATE HIKES, JD POWER STUDY SAYS
Consumers are reducing their driving to save money
Many Americans have changed their driving habits and are considering buying a car amid high gas prices and rising inflation, according to a recent Quicken survey.
As prices rise in the United States, many Americans said they have changed their daily lifestyle, including the amount of food they eat and the foods they buy, according to the survey. And around two-thirds (66%) also said they were reducing their driving time.
The consumer price index (CPI), a measure of inflation, rose 8.5% annually in July, according to the latest report from the Bureau of Labor Statistics (BLS). This is down from 9.1% in June, but still near record highs.
Gasoline prices fell 7.7% in July, offsetting rising food and housing costs, the report said. The energy index also fell 4.6% during the month, even as electricity costs rose.
If you’re struggling in a rising inflation environment, switching to a lower car insurance premium could help you save money each month. Contact Credible to speak with an auto insurance expert to see if this is the right option for you.
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