NJM insurance gaining most consumers, while Nationwide losses most, Consumer Reports survey finds
As insurance premiums rise and consumers switch auto insurers, most consumers are starting new policies with NJM, Acuity, and Erie, according to a Consumer Reports national survey.
Of 40,000 policyholders surveyed, 30% have switched to a different car insurance company in the past five years. Consumers were asked about their current insurers and which companies they switched from.
“From this, it’s clear that NJM is winning the switching game,” Consumer Reports writes. “Among its customers who made a switch one way or the other, the survey showed that 91% joined NJM, with just 9% leaving.”
Acuity and Erie both had 3-to-1 switching ratios, the report says. Acuity had 78% of consumers switching to and 22% switching from, with Erie showing 77% switching to and 23% switching from.
Nationwide, Farmers, and Kemper are the companies that saw the most consumers leave, according to the survey.
Nationwide had 28% of consumers switch to its company, while 72% left. Farmers gained 34% of customers and lost 66%. Kemper saw 35% switch to it and 72% switch from it.
As for other big-name insurance companies, Progressive, State Farm, and USAA all saw more consumers switch to their companies than leave.
GEICO, Liberty Mutual, and Allstate had more consumers leave their companies than switch to them, according to Consumer Reports.
More than half (58%) of consumers told Consumer Reports that they switched for better rates. The second most common reason was also related to cost, with 41% saying their old insurer raised their premium.
Consumer Reports says that fewer consumers switch due to negative experiences with agents, filing a claim, an unsatisfying service response, company reputation, or advertising. Each of those factors made up less than 8%.
Those who switched companies found a median annual savings of $461, the report says. Forty-one percent saved $500 or more, and 13% saved $1,000 or more.
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