GEICO, Graduated Auto Insurance Policy Holders As Americans Abandon Allstate, State Farm

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A new study from JD Power, in collaboration with TransUnion, finds that Progressive and GEICO were the biggest winners in the US auto insurance industry in the second quarter of 2021. The Quarterly Shopping List Report examines quotes and rates auto insurance change.

GEICO had the highest quote volume among the major insurance companies. Allstate came in second, with Progressive and State Farm in third and fourth, respectively.

GEICO remains popular in the North East, South and West where it retains its position as the most highly rated insurer in Q2. Progressive leads the southern United States

Progressive has captured most of the business of defectors who have decided, for one reason or another, to change insurers. The company has now gained 45.2 percent market share over the past five years.

Over the same period, The Hartford saw its market share shrink the most, dropping 35.3%. The other losers are Nationwide (down 35.1%), Farmers (down 16.9%) and State Farm (down 12%).

Auto insurance companies are increasingly being dumped for Progressive and GEICO.
JD Power

Customers of Allstate, GEICO, State Farm and Travelers were the most likely to switch to Progressive. American Family Insurance policyholders have moved regularly to Allstate while Farmers, Progressive and USAA customers have moved to GEICO. State Farm disputed the cases of Nationwide and Liberty Mutual.

USAA, Amica, The Hartford, Kemper, Nationwide and State Farm were the most loyal in the second quarter of 2021. National General, ACG, Progressive, SafeCo and Auto Owners insurances have the least loyal customers.

After the pandemic, American car buying habits are back in full swing. Although the semiconductor chip shortage has reduced factory output, many buyers buy vehicles before or as soon as they arrive at dealer lots.

Americans’ driving habits are also changing as new drivers get licenses, workers resume their trips to the office, and travelers hit the road. These changing habits, along with new vehicle purchases, give buyers a reason to shop for the best rates. JD Power believes that “the huge pent-up consumer demand” “will continue to have implications for auto insurers” in the third and fourth quarters.


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