A national Consumer Reports survey of more than 40,000 policyholders sheds light on why many people change car insurance companies and how switching patterns affect insurers.
Switching Rates and Motivations
The survey found that 30% of current policyholders switched insurers within the past five years. Premium-related reasons dominated:
- 58% said their new insurer offered better rates.
- 41% said their former insurer raised premiums.
In total, 73% of policyholders who switched cited one or both of these cost-related factors. Other considerations — such as claim experiences, service, reputation, or advertising — were reported by fewer than 8% of switchers.
Company Gains and Losses
The data showed notable differences among insurers in terms of customer movement.
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Companies with net gains:
- NJM led the survey with a 91-to-9 ratio of customers gained versus lost.
- Acuity and Erie each had 3-to-1 ratios favoring gains.
- Among major insurers, Progressive and State Farm showed positive switching ratios.
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Companies with net losses:
- Nationwide recorded a 28-to-72 ratio, losing more than twice as many customers as it gained.
- Farmers and Kemper each showed near 1-to-2 ratios of gained versus lost customers.
- Among the four largest insurers, Allstate and GEICO reflected negative ratios.
In addition, four insurers attracted new customers primarily for lower premium prices: NJM (87%), Hartford (85%), Hanover (83%), and Acuity (83%). On the opposite side, Hartford (79%), Mercury (78%), Liberty Mutual (77%), and Farmers (77%) were most often left due to premium costs.
Reported Savings from Switching
Survey respondents cited median annual savings of $461 after switching, roughly one-third of the median annual premium of $1,452. Additional findings included:
- 41% saved $500 or more annually.
- 13% reported savings of $1,000 or more.
- Savings scaled with premium size, ranging from $298 for those paying under $500 annually to $922 for those with premiums of $5,000 or more.
- Amica switchers citing premium-related reasons reported median savings of $666.
Policy Review and Rate Comparisons
The survey also noted that policyholders often benefit from reviewing their coverage to ensure it reflects driving habits, the number of drivers, and parking arrangements. Adjustments such as raising deductibles can sometimes reduce premiums by 20–25%.
While bundling auto and home coverage may provide savings, results vary, making verification necessary. Platforms such as Compare, Experian, Insurify, Jerry, Policygenius, and The Zebra were identified as reliable for rate comparisons, though none cover every insurer.
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