Insurance Shopping Study 2023: How Do You Shop for Insurance?
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According to the J.D. Power 2022 U.S. Insurance Shopping Study series, many people are dissatisfied with their insurers due to significant rate hikes and are actively shopping for new policies.
Many consumers who bundled their home and auto insurance for a discount began looking for savings by breaking up the bundle. In most cases, shoppers are seeing more of a hike in auto insurance than home insurance, which is why they are buying policies separately, but home insurance is on the rise again too in 2023.
Many new renters were former homeowners who neglected to buy renters insurance policies, which is crucial to replacing all your personal items if a disaster destroys or damages them.
Buying an individual or family health insurance plan was one of the most puzzling things to do for many insurance shoppers, and they needed to create complicated graphs and map out several factors to compare options. Many still weren’t sure if they were comparing apples to apples.
Roughly 30% of small businesses saw hikes in commercial insurance premiums, but did not shop around for lower rates, which are easy to find in the market today.
As for life insurance, many shoppers were confused about the options and benefits and often bought a policy on price alone, which ended up in dissatisfaction. We suggest and help you find agents who will help you compare insurance policies in a knowledgeable way, even when buying Medicare Advantage plans.
So, how do you shop for insurance? See how others have done it and how you can get the best coverage at the lowest rate for any type of insurance you need in 2023.
Who Is the Most Unhappy With Their Insurance Purchase?
Seems that bundlers have been most dissatisfied with their policies in 2022. Non-bundlers are also less satisfied than they were last year. Although it’s been ingrained in most of us that bundling will help you save, customers are finding that price increases have canceled out most of the savings they’d been getting. Some are turning to small local car insurance carriers and buying home insurance separately to save some cash. Even those who did not bundle have been changing insurers for lower rates. In short, drastic car insurance hikes and moderate home insurance increases have led consumers to comparison-shop for new insurance carriers.
2022 Price Hikes for Homeowners Insurance and Auto Insurance
- Both homeowners insurance and car insurance shoppers were unhappy with price hikes.
- There has been a surge in auto insurance online shopping.
- Roughly 51% of shoppers in a J.D. Power Auto Insurance Study switched after price checking, and 64% were actively shopping due to rate increases of 11% or higher.
Customers Are Looking to Insurtech Startups for Savings
It used to be that people only felt comfortable putting their most valuable assets in the hands of companies that had stood the test of time. Now, Insurtech companies like Lemonade and Hippo have made consumers so aware and awed by their brands that people are either buying insurance from these new carriers or waiting until they serve their state.
The leading Insurtech carriers offering home insurance include:
- TypTap Insurance Group Inc.
- Kin Interinsurance Network
- Lemonade Inc.
The top Insurtech carriers offering car insurance include:
- Root Insurance
- Lemonade Inc.
Leading Insurtech carriers offering health insurance:
- Bright Health
- Clover Health
The top business insurance Insurtech carriers include:
- Next Insurance
The great seduction in these Insurtech startups is the ease with which you’re rated – all done online. Some consumers, however, are still hesitant about trying out a carrier that is not a household name. In that instance, insurance rate comparison websites, like SmartFinancial, have merged the technology to get quotes from the big brands and the small local ones.
How Insurance Companies Rated for Home Insurance
A trusted J.D. Power study looked at how home insurance rated amongst policyholders insured with the big household name insurers. The study was based on a 1,000 point scale, with American Family holding the top spot at 842. See how the top insurers fared below:
5 Factors That Matter Most To U.S. Home Insurance Policyholders
Surprisingly, even in the midst of a lag in the economy, price came in as the fifth most important factor in choosing or staying with a home insurer. Here are the top 5 reasons homeowners look for in an insurer.
- Good Customer Service
- Brand Reputation
- Bundled Products
How Auto Insurance Companies Rated for Auto Insurance
Similar to home insurance, J.D. Power conducted a car insurance study for policyholders insured by the big insurance companies. The study was based on a 1,000 point scale, with State Farm holding the top spot at 885. See how the top insurers fared below:
4 Factors That Matter Most to Car Insurance Policyholders
The following factors were important to car insurance policyholders:
- Transparency About Rate Hikes
- Usage-based Telematics Programs
- Online Self-help Tools
Some consumers were willing to stay with an insurer if they were told ahead of time and understood that increases were happening for all drivers. The slight overall decline in customer satisfaction in 2022 was mainly due to price increases.
Many drivers are driving less since COVID began and are opting for usage-based telematics programs that are rated based on how much, when and how safely you drive. Drivers are finding savings and don’t mind the invasion of privacy! Also, consumers are happy when their carriers offer ways for them to make changes and file claims with apps and online dashboards.
How To Get the Lowest Prices in Homeowners Insurance and Car Insurance
According to another J.D. Power Study, 54% of insurance shoppers did not use digital tools at their service, which would’ve saved them money on homeowners and car insurance. Of the folks utilizing the technology offered, the bottom 25% of the people surveyed were not happy using carrier apps.
Start using a money-saving app that’s easy to use. Here are 8 steps to saving money on insurance in 2023:
- Get important information, such as your vehicle registration number (VIN), ready.
- Go to https://smartfinancial.com/auto-insurance and enter your zip code, then fill out a form for car insurance
- Go to https://smartfinancial.com/home-insurance and enter your zip code, then fill out a form for home insurance
- In speaking with agents, gather quotes for home insurance separately and quotes for the home and auto bundled from each insurer. Next do the same with auto insurance.
- Sit down and do the math. Consider convenience and customer satisfaction.
- Call the agents offering you the best rates and go over their discounts to see if you can lower your rate even more.
- Buy insurance and get covered instantly.
- Cancel your old policies after switching, but only after your new ones are active.
Private Health Insurance Shoppers Want Lower Prices
As you can imagine, most people who buy their own health insurance are onboard with the idea of decreasing pricing, however, very few actively seek out lower prices before renewing their previous year’s plan.
Health Affairs surveyed 2,996 people (18-64) and only 13% of respondents compared prices before receiving care. So not only did they not price shop before buying a policy, 52% did not look to see if they could have lower out-of-pocket costs by switching providers.
Respondents also said that they did not associate higher health insurance costs with better care. Even still, due to hesitancy about starting all over with new doctors as well as the lack of transparency in pricing, the majority seemed unable or hesitant to shop around for a better value health plan.
You, too, may be paying hundreds of dollars too much on your policy. The only way to know if you’re paying a fair premium is to comparison-shop.
How To Shop for Health Insurance and Save
To make sure you’re comparing apples to apples, compare your options by creating a chart and jotting down the following amounts for each plan you’re considering:
- Monthly Premium
According to a study by the National Library of Medicine (NIH), almost half the people who shopped for a private health insurance plan for themselves or for a family, had a negative experience and felt challenged by the process. The majority of health insurance shoppers felt confused by the health insurance tier system and may have paid too much for their policy. See below:
It’s best to compare plans at once instead of one at a time with a health insurance comparison site. Simply go to https://smartfinancial.com/health-insurance and enter your zip code. You’ll answer a series of questions only one time. You’ll then receive calls from agents offering the lowest rates.
Insurance agents are there to help you so you don’t spend hours trying to compare your options and all the factors that go into choosing a plan. The right agent can simplify the experience for you at no additional cost. It’s time to find the right health insurance company.
Record Commercial Insurance Hikes and Customer Satisfaction
Since 2020, customer satisfaction for commercial insurance has declined, mainly due to reasons associated with COVID and its impact on small businesses. However, towards the close of 2022, it was picking back up and was only two percentage points below customer satisfaction rates prior to the pandemic. Below are the reasons that customers either stayed with an insurer or switched companies.
4 Factors That Matter Most to Commercial Insurance Policyholders
- Positive Interaction With Agent
- Billing and Payment
- Policy Offerings
After an eight year lull, 2022 saw record hikes in commercial insurance for small businesses but loyalty with carriers remained relatively high as the year came to an end. The following insurers ranked in terms of customer satisfaction. State Farm ranked #1 with 856 points:
Despite a relatively high satisfaction rate all around, about 30% of businesses saw an increase in premiums in 2022. Of those surveyed by J.D. Power, the majority of customers stayed with their insurance company when they were informed of increases prior to the hike. Shopping around for insurance coverage is the best way to find a competing rate.
How To Shop for a Commercial Insurance Policy and Save
Business owners who compare rates pay lower than average premiums. Just goto https://smartfinancial.com/commercial-insurance, type in your zip code and answer a few questions. You’ll then have agents who specialize in your industry call you with benefit options and pricing. You can then pick the plan that has the most coverage you need for the lowest premium.
How Insurance Companies Rated for Life Insurance
Since COVID began, Americans have been buying more life insurance policies than ever, and in 2022 13% more people bought policies than the previous year. Of these shoppers, 57% of buyers got insured due to uncertainty in the future. Most shoppers have been initiating the purchase on their own, without first being propositioned by an insurance agent. However, there’s more to consider about life insurance than pricing alone.
Most shoppers don’t know the difference between a whole life policy, a term life policy or a universal policy (and there are even more options!).Therefore, not all consumers are getting what they truly need and want. A majority of Americans also don’t know that certain types of life insurance policies have a savings component and that they are perfect to take out for a child, even a baby, who will be able to pay for college, a new car or whatever they need when they reach adulthood.
Having a reliable agent is crucial in choosing the right life insurance policy. More on this below.
How To Buy Life Insurance and Save Money
Life insurance policies vary greatly and so do the price tags. However, before you go buying whatever’s cheaper, you should see why that type of policy is so cheap. It probably doesn’t have a savings component and may not pay out very much.
The best way to buy life insurance is to understand the differences in policies and why they are priced so differently. Here is a quick life insurance primer to get you started.
You’ll also need an honest and patient insurance agent who will explain all that’s not clear to you. If you compare rates with SmartFinancial, you’ll be connected with 3 or 4 agents to choose from. You’ll get free rates and an explanation of policy options. All you have to do is enter your zip code and answer one set of questions to get details and pricing on several different policies.
According to a J.D. Power study, satisfaction with the life insurance policy people purchased is 774 out of 1000. This number would be much higher if consumers compared options and were educated by a knowledgeable insurance agent about these options before purchasing a policy.
Best Insurance Companies of 2023
Best Term Life
Best Permanent Coverage
Best Guaranteed Issue
Mutual of Omaha
Best Coverage Without a Medical Exam
*Ratings based on WSJ report
Who Is Buying Renters Insurance and Are They Satisfied?
Interestingly, adults over the age of 55 now account for nearly 30% of the rental market, according to J.D. Power. Most were homeowners who had home insurance but after moving, only 52% bought renters insurance. That is not to say that renters insurance is not important. Without it, you’re fresh out of luck if your personal property is damaged or destroyed!
The main factor that matters to renters insurance shoppers is price, with 52% of those surveyed buying the lowest cost policy.
Top 3 Renters Insurance Companies According to J.D. Power
Instead of contacting each of the following three insurers for direct quotes, you can enter your zip code at https://smartfinancial.com/renters-insurance and compare dozens that include the following winners for free:
How Are Seniors Shopping for Medicare?
Many Medicare beneficiaries switch to Medicare Advantage (MA) plans on the advice of their doctors, who know that many Medicare Advantage plans have benefits regular Medicare does not cover, like hearing and dental.
According to a J.D. Power Study, a doctor referral is how the majority of Medicare policyholders switch to Medicare Advantage plans. Also, customer satisfaction with private Medicare plans was up three points since 2021 and up 15 points over the past five years, bringing the total to 809 out of a 1,000 points.
Customer Satisfaction With Medicare Advantage
While customer satisfaction ratings for Medicare Advantage plans rose in 2022, the following benefits had some policyholders complaining:
- Only 38% of members had enough coverage for mental health services.
- Only 27% of members had enough coverage for substance abuse disorder services.
Meanwhile, other services ranked high:
- 97% of members had enough coverage for routine diagnostics.
- 89% of members had enough coverage for preventive and wellness services.
- 48% of members said they will continue to use telemedicine services.
Top 9 Medicare Advantage Carriers
The following carriers who offer Medicare Advantage had the highest ratings, according to a J.D. Power survey:
Every Medicare customer deserves to review the options and benefits of each plan that is available in their state. When you compare rates with SmartFinancial, you will receive calls from agents offering Medicare Advantage. Be sure to tell the agent what you need so that you end up with a policy that offers coverage for your needs. For example, not all MA plans offer hearing, but if you know you need hearing aids or dentures, you will want your agent to specifically look for a plan that offers it.
At the very least, you’ll want to make sure to buy Medicare Supplements to help with out-of-pocket expenses.
How To Shop for Medicare Advantage or Medicare Supplements
All you need to do to start comparing rates and benefits for free is to log onto medicare and enter your zip code. You’ll be asked several questions, after which you will begin receiving calls from agents who can go over each specific plan.
It’s a good idea to look at last year’s bills to see which out-of-pocket expenses you may find coverage for when you speak with agents.
There’s no need to pay more for insurance than you have to, and you don’t have to sacrifice quality to get a good deal! No matter which type of insurance you need, you can compare rates now. Simply go to the top of this page, where you’ll see the different types of insurance. Click on whichever one(s) you need, enter your zip code and wait for insurance agents to call you to go over benefits and pricing.