Every insurer uses a different pricing formula in creating the premium it quotes you. As a result, you’ll find competing carriers charging different amounts for the same or almost the same coverage. By shopping periodically, you have the potential to save with your current carrier, or with a new insurer that’s just as good or better.
Remember all the talk that digital transformation would disrupt the auto insurance industry? Well, it’s real. According to the J.D. Power 2020 U.S. Auto Insurance Study, SM released today, insurance company websites—for the first time in the study’s 21-year history—officially surpass agents in terms of importance to client interaction and service by providing higher customer satisfaction.
“We’ve seen this trend developing for several years, but this is the first time that the digital channel has become the preferred means of interacting with auto insurers, exceeding one-on-one communication with agents,” said Robert Lajdziak, senior consultant for insurance intelligence at J.D. Power. “This has huge implications for the industry because it puts the focus squarely on digital investment to notably expand creating seamless customer touchpoints. It’s an area in which the major national carriers excel, versus hyper-local, albeit knowledgeable, agent networks.” Source: J.D. Powers
The following companies are based on the U.S. results. Ranking and pricing may differ in different regions. These companies may offer other products other than for cars. Here are the TOP 5 INSURANCE COMPANIES 2020.
- Tied for 1st- Amica and USAA
- Country Financial Insurance
- Erie Insurance
- Geico Insurance
- Statefarm Insurance
Control Your Policy
In our recent survey of Consumer Reports members, 22 percent told us they’d switched insurers in the past five years. Of those, 62 percent said they’d found a better price. And 77 percent of switchers were highly satisfied with their new carrier.
That suggests there’s good reason to shop periodically. To get off the stick, you may have to set aside worries that a new carrier will drop you or raise your premium more quickly than your old insurer when you file claims. Insurers and consumer experts told us that’s not necessarily true. And if you’re a good driver, it shouldn’t be a concern.
In fact, your loyalty as a customer may not net you much in discounts. Thanks to “price optimization,” a computer-based pricing practice that’s legal in 30 states, insurers can mine data collected about the shopping behavior of consumers to predict the price sensitivity of a group of consumers, or perhaps even an individual. While your carrier may offer you a loyalty discount of 10 percent, it could use price optimization to raise your price 30 percent because the data shows you won’t bolt.