It is no secret that car insurance costs have soared in recent years. Over the past half-decade, a good portion of fed-up drivers have taken their business elsewhere in hopes of saving money, according to a recent Consumer Reports survey.
The survey of more than 40,000 drivers found that 30% of current car insurance policyholders had switched to a new carrier in the prior five years. Survey participants cited a desire to save money as their top reason for making the change.
Consumer Reports found that:
- 58% said their new insurer offered better rates than their previous carrier
- 41% said their old insurer raised premiums
Taken together, 73% of policyholders who made a switch did so for one or both of those reasons related to premium costs.
So, which insurance companies are seeing policyholders drive away, and which carriers are welcoming more new traffic?
These are the insurers losing the most customers, according to Consumer Reports’ survey, followed by those attracting policyholders in droves.
Insurers that drivers are switching away from
Among all insurers mentioned by Consumer Reports survey respondents, Nationwide has experienced the roughest ride when it comes to holding on to customers over the prior five years.
Among surveyed Nationwide customers who made a switch in one direction or the other, 72% switched away from the insurer, and just 28% switched to it. That means Nationwide lost almost two-and-a-half times as many customers as it gained.
Here are the five insurers that the most survey respondents switched from, along with the ratio of “switching away” to “switching to”:
- Nationwide: 72% switched away, 28% switched to
- Farmers: 66%, 34%
- Kemper: 65%, 35%
- Geico: 60%, 40%
- Hanover: 59%, 41%
Insurers that drivers are switching to
NJM has had the biggest success by far when it comes to attracting new customers — and holding on to existing policyholders — at least judging by the Consumer Reports’ survey findings.
A whopping 91% of surveyed NJM customers switched to the company, with just 9% departing. Here are the top five car insurance companies that surveyed drivers turned to, along with the ratio of “switching to” to “switching away”:
- NJM: 91% switched to, 9% switched away
- Acuity: 78%, 22%
- Erie: 77%, 23%
- Auto-Owners Insurance Group: 66%, 34%
- Progressive: 65%, 35%
How much you stand to save
Survey respondents told Consumer Reports that they saved a median of $461 annually by switching to a different car insurer. That is nearly one-third of the median annual amount that respondents pay for insurance: $1,452.
Among those who switched, 41% saved $500 or more per year, and 13% saved $1,000 or more.
Of course, drivers with higher premiums tended to save more. Median savings were $298 a year for those with premiums under $500 annually, and $922 for those paying $5,000 or more in premiums.
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