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GEICO, Progressive Profit Auto Insurance Holders As Americans Dump Allstate, State Farm

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JD Power Car Insurance Switching

A new study by JD Power, in collaboration with TransUnion, reveals that Progressive and GEICO were the biggest winners in the U.S. auto insurance industry in the second quarter of 2021. The Quarterly Shopping List Report examines auto insurance quotes and switching rates.

GEICO had the most quote volume of the leading insurance companies. Allstate took second with Progressive and State Farm taking third and fourth positions respectively.

GEICO continues to be popular in the Northeast, South and West, where it maintains its position as the top listed insurer in the second quarter. Progressive is top in the south of the US

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

During the same period, The Hartford saw its market share fall the most, losing 35.3 percent. Other losers are Nationwide (-35.1 percent), Farmers (-16.9 percent) and State Farm (–12 percent).

JD Power Car Insurance Switching
Auto insurance companies are increasingly dumping for Progressive and GEICO.
JD Power

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

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

After the pandemic, US auto buying habits are picking up again. Although the shortage of semiconductor chips factory production has decreased, many buyers buy vehicles before or as soon as they arrive at dealer lots.

Americans’ driving habits are also changing as new drivers get a driver’s license, employees resume commuting 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” in the third and fourth quarters “will continue to affect auto insurers.”

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