Homeowners and renters insurance costs have now surpassed both the rate of inflation and the average increases seen in auto insurance over the past year, according to the JD Power 2024 US Home Insurance Study.
According to the report, the rising rates have led to a significant increase in the number of customers shopping for new policies due to the high costs.
“The average shopping rate among home insurance customers reached a record 6.8% in the second quarter of 2024, up from 5.9% two years ago,” said Breanne Armstrong (pictured above), director of insurance intelligence at JD Power.
Armstrong added that while many customers are exploring alternatives, a lack of options has caused many to stay with their current provider. However, steady rate increases could affect policy retention and customer satisfaction.
Among customers who experienced insurer-initiated rate hikes, 37% are likely to shop for new policies. The top reason cited for shopping is high rates. Customer satisfaction among those who received a rate increase is 594 on a 1,000-point scale, 92 points lower than among those who did not receive a rate hike.
While 6.8% of all home insurance customers are actively looking for new policies, only 2.2% actually switched insurers, down from 2.5% two years ago.
Bundling home and auto policies has decreased in 2024 compared to the previous year. However, more customers are considering switching auto insurance without changing their home insurance. A fifth (21%) of customers also said they “definitely will” switch their home insurance if they switch auto insurance, down from 24% in 2023.
Clear communication from insurers can mitigate the impact of rate increases. Customers who fully understand the reason behind a rate increase are 14 percentage points less likely to shop for a new policy. They are also 21 percentage points more likely to agree that their insurer puts customer interests first.
Erie Insurance ranked highest in the renters insurance segment for the second consecutive year, scoring 713. Amica (695) and Lemonade (682) rounded out the top three.
What are your thoughts on this story? Please feel free to share your comments below.
DOTHAN, Ala. (WTVY) - A three-year-old wandered unsupervised from a Dothan daycare this week, then walked to a nearby store where someone noticed him about 25 m
(Gray News) - Walmart is kicking off the holiday shopping season earlier than ever.The retailer announced plans for a massive sales event starting in October to
Join Target Circle today to unlock special savings this fall.— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through ou
Page Six may be compensated and/or receive an affiliate commission if you buy through our links. When it comes to adding J.Crew styles to cart