The percentage of American households with cars and without auto insurance rose during the first half of 2023, and the share of customers who say they are shopping for auto insurance reached a record high.
J.D. Power recently shared these findings in an insurance intelligence report.
The consumer insights company found that the percentage of households with at least one car and no auto policy reached 5.7 percent through the first six months of the year, up from 5.3 percent in the second half of 2022. Meanwhile, the percentage of customers who say they are shopping for auto insurance hit 12.5 percent through the second quarter of 2023, representing an all-time high.
“As inflation has affected all sectors of the economy, the costs of repairing and replacing damaged vehicles, medical costs and all other costs associated with an auto insurance claim have increased substantially,” reads the J.D. Power report. “Consequently, auto insurance premiums have increased at an unprecedented rate during the past two years (7.9 percent in 2022, and another 5.9 percent in the first six months of 2023).”
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Per the report, states with the highest levels of increases in uninsured driver rates between the second half of 2022 and the first half of 2023 are South Dakota (106 percent), New Hampshire (84 percent), West Virginia (50 percent), Oregon (47 percent) and Indiana (36 percent).
TransUnion recently reported that auto insurance shopping rates rose 12 percent year-over-year in the second quarter of 2023. While vehicle sales played a role in the increase, TransUnion said in an August press release that the search for lower insurance premiums was the primary driver.
“Customer loyalty is usually earned in times of turbulence,” reads the J.D. Power report. “Insurers that can rise to the occasion may see added benefits in the form of increased customer loyalty and advocacy when conditions improve.”
This article was originally published by Insurance Journal