In an interesting survey of auto insurance policy owners, fewer motorists changed their insurance company for their vehicles as the U.S. recession spurred a “hunker-down mentality,” according to a J.D. Power and Associates survey.
The proportion of customers seeking a new insurer fell to 28 percent in the 12 months ended in March from 36 percent in the year-earlier period, the marketing company said today in a statement. The study showed a slump in shopping in the fourth quarter and January, and some companies reported a rebound in recent months, Jeremy Bowler, J.D. Power’s senior director of insurance, said in an interview.
“Many customers are employing a hunker-down mentality,” Bowler said in a statement. “Most customers would prefer to hold tight to their current provider, which they already know, rather than risk trying a new provider.”
Auto insurers’ premiums have declined as drivers reduced coverage in response to the recession and profits dropped on investment writedowns. Consumers most often cited price as a reason for their shopping, and more than a third said price was the reason for switching carriers. Ninety percent of customers stay with their current provider, J.D. Power said. I guess this all comes as no surprise as folks seem to have bigger worries on their minds.