Zinda + Partners LLC

Sorry, Flo!

Some of the most heavily-advertised brands in the auto insurance business do not do well in the annual J.D. Power satisfaction study of the insurance purchase experience.

Power notes that after average rate increases of 2.5% in 2013 and 2.1% last year, many customers are shopping for a new insurer, but few are actually switching. “Customers are being pushed into the market due to rate increases,” Power’s director of insurance practice said. “But unless they can find a policy that will save them money, they’re not switching providers. In fact, many of those customers can’t find a better deal and ultimately don’t switch.”

Power found that only 29% of customers say they found a better deal and switched in the past year, down 12 percentage points from a year ago. Shoppers who did switch though said they achieved an average savings of $388, up from $340 a year ago, which will allow companies to continue to highlight big savings for people who switched in their creative.

Erie Insurance ranked highest for the third year in a row, with a score of 870 on a 1,000-point scale, just ahead of Ameriprise and The Hartford, each with an 869. The industry average of the 23 companies studied was 833. 

Of the two most heavily-advertised brands, GEICO just barely beat the average with an 836 score and Progressive trailed significantly with an 817. 

Other major companies studied were Liberty Mutual (848), Travelers (838), Nationwide and State Farm, each at 834, Allstate (832), and Farmers (831).

USAA, which is only available to military personnel and their families (but still advertises on television), is not included in the rankings but actually beat all the others that were included with an outstanding 896 score.