Car insurance switching ratios reveal the cost of policy inertia
Two-thirds of the 40,000 policyholders surveyed by Consumer Reports switched car insurance carriers in the last five years for cost-related reasons. This migration is driven by specific pricing gaps. Liberty Mutual raised its rates by 31.1% between 2022 and 2023, while Geico raised rates by 29.1% in the same period. For some, the cost of staying is an annual premium of over $4,000 for a 35-year-old with a clean record at Farmers. The cost of poor credit can reach an annual premium of $14,466 at The Hanover. For drivers with a DUI, Nationwide charges an average of $5,948 for full coverage. These figures contribute to switching ratios where more customers leave than join. Nationwide's ratio is 28% switched in to 72% switched out. By 2024, Nationwide has dropped out of the top 10 insurance carriers.
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