Insurance Shoppers Less Concerned With Price

  • May 25, 2010
While price is a key motivator in the insurance shopping process and final purchase decision, its impact on new-buyer satisfaction has declined compared with one year ago, according to the J.D. Power and Associates 2010 U.S. Insurance Shopping Study. Erie Insurance ranks highest in new-buyer satisfaction for the third consecutive year.

Price is the leading reason -- cited by 41% of shoppers -- that insurance shoppers consider an insurer but do not obtain a quote from that insurer. In addition, 76% of shoppers who obtained a quote from an insurer but did not purchase a policy from that insurer cite price as a reason. However, price accounts for only 28% of overall customer satisfaction with the purchase experience -- less important than both policy offerings (29%) and distribution channel (43%).

Erie Insurance, with a score of 886 on a 1,000-point scale, ranks highest among auto insurance companies in satisfying new buyers with the purchase experience for a third consecutive year. Erie Insurance performs particularly well across all three factors driving satisfaction: distribution channel; price; and policy offerings. The Hartford ranks second overall with a score of 868, followed closely by Auto-Owners Insurance (867). --Tanya Irwin



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