U.S. Auto insurance holders say that they are feeling the squeeze of increasing prices and more than half plan to change insurance providers. According to NerdWallet, while only 6% of respondents said they had switched insurance providers in the past 12 months in order to save money on premiums, a larger proportion (12%) plan to do so in the coming 12 months.
Around 57% of car insurance holders say that their rates have increased in the past 12 months. 12% of those with insurance (defined as insurance other than health insurance) said they delayed a large purchase because of the price of their policy.
A survey by the Harris Poll of over 2,000 U.S. adult respondents found that Americans feel the impact of increased car insurance rates , yet they are not switching in great numbers.
This is a rate increase
According to NerdWallet, the analysis of Quadrant Information Service’s rates, full-coverage car insurance costs $2,148 annually in the United States. Full coverage car insurance covers both liability (for damage that you might cause to others or their property), as well as damage to the vehicle.
Costs for drivers continue to rise. According to Bureau of Labor Statistics, auto insurance rates increased 16.9% in the year ending June 2023.
According to NerdWallet, 31% of Americans who have auto insurance anticipate that their rates will rise over the next year due to external factors. Auto insurance rates are affected not only by factors such as driving record, age, car model and location, but also the insurance company’s costs and losses.
The North Carolina Rate Bureau (a group representing insurance providers) has filed a request to increase auto insurance rates in North Carolina by 28.4% in 2023. If state regulators approve the increase, all drivers in North Carolina could face higher rates regardless of their driving record.
It is not surprising that less than half (45%) of car insurance holders think their rate for auto insurance is fair.
It is not common to switch between and
Although Americans don’t love their insurance prices, it hasn’t caused them to switch providers in mass numbers. The survey revealed that only 6% of car insurance holders have switched providers in the past 12 months to reduce their costs.
All insurance policies (auto, home, life) are included. About 3 out of 10 people (28%) said they compared insurance prices in the past 12 months. This is slightly more common among millennials (ages 27 to 42), who report comparing prices at 39%. Comparatively, Generation Z owners (ages 18-26) and Generation X owners (ages 44-58) as well as baby boomer (ages 59-77) say they compare prices.
Although activity is relatively low, a rise in the number of comparisons may be coming. Around 1/5 of auto owners (17%) report that their rates have not only increased, but also increased significantly in the past 12 months.
The fear of further hikes and these increases could have prompted the increase in people planning to change providers.
Plan to Shop Around
According to the survey, about 1 in 8 car insurance holders (12%) plan to switch providers in order to save money within the next twelve months. This is especially true for the millennial generation, where almost 1 in 4 people (23%) plan to change insurance providers. This is more than the other generations (Gen Z, Gen X and baby boomers combined at 14% %).).
NerdWallet’s analysis of rates found that the price of an insurance policy can vary widely depending on factors such as the insurer and the type. Drivers who shop around for rates will find many variations.
NerdWallet analyses show that the national average rates of full coverage for four major U.S. car insurance companies (State Farm, Geico Progressive, and Allstate) range between $1,431 and $3,110. Comparing car insurance quotes is the only way you can find the lowest rates.