EV Owners & Auto Insurance — Unhappy

As always, the J.D. Power’s 2024 US Insurance Shopping Study looked at auto insurance from a number of angles. One of the findings of the insurance shopping survey is the insurance shopping satisfaction of electric vehicle owners compared to that of gas powered vehicle owners.

EV owners are less happy with their shopping experience.

“Electric vehicle (EV) owners are less satisfied with the auto insurance purchase experience than are customers insuring gasoline-powered vehicles,” the study noted. “The average purchase experience satisfaction score among EV owners is 663, which is 16 points lower than the average score among owners of gas-powered vehicles. This gap is attributable to lower satisfaction with the quote process and price of the policy because EVs are typically more expensive to insure than comparable gas-powered vehicles.”

J.D. Power spokesman, Stephen Crewdson said 49% of all auto insurance policyholders shop for a new plan in the last year. Just 29% changed insurers in spite of the average cost of auto insurance jumping an average of 22.2% from February 2023 to February of this year.

“After the past few years of steady auto insurance premium increases, customers are no longer passively keeping an eye out for a better deal,” Crewdson said. “Instead, they are actively seeking new carriers to offset these rising costs. However, with rising premiums across the country and fewer insurers explicitly offering usage-based insurance — or UBI plans — during the quoting process, insurance shoppers are not finding many alternatives.”

The 2024 survey found UBI programs were offered to just 15% of those shopping for insurance. That’s down quite a bit from the 22% in 2023 and the 20% in 2022.

Source link: Business Insurance — https://bit.ly/3WwjZu5

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