More consumers are shopping for new auto insurance in response to rising inflation and high gas prices, according to a J.D. Power report.  (iStock)

High gas prices and other inflation issues have caused more drivers to search for new auto insurance in an attempt to lower their rates, according to a recent report from J.D. Power.

The rate at which drivers were given new auto insurance quotes increased by 11.8% in the second quarter of 2022, and the switch rate increased by 3.6%, according to J.D. Power’s Quarterly Shopping List Report.

“Even some of the top carriers are taking extra measures to stay profitable in this challenging environment,” J.D. Power stated in its report. 

Car insurance companies with the highest levels of loyalty included Amica, USAA, Erie, NJM and MAPFRE. On the other side, providers with lower loyalty rates included Kemper, Progressive, ACG, National General and GEICO. 

If you are looking for ways to lower your auto costs, you could consider switching your insurance coverage provider. Visit Credible to find your personalized car insurance quote without affecting your credit score.

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Consumers consider usage-based auto insurance

As consumers consider switching their auto insurance, they are looking to change their premium type to one with a usage-based program, the report said. 

“As consumers search for lower premiums they are increasingly turning to usage-based insurance programs to help alleviate the increased mobility costs,” J.D. Power said. “Since LIST began tracking both shopping and overall usage of UBI, we’ve seen a steady increase in adoption, particularly by those in the lower self-reported credit tiers, a trend that is likely to continue as macroeconomic pressures continue to impact consumers – particularly those who are price-sensitive.”

Over the first quarter, there was a 33% surge in auto telematics adoption, according to TransUnion. This option allows companies to monitor consumers’ driving to help determine their premium. The number of customers who chose this option increased from 49% to 65%.

“More consumers are warming to the idea of using a telematics tool to enhance safe driving, while also lowering costs,” Michelle Jackson, TransUnion’s senior director of personal lines market strategy, said. “Consumers are shopping for lower premiums, better coverage and superior service from their insurer.”

If you are looking for ways to lower your auto insurance premiums, you could consider comparing multiple plans and providers. Visit Credible to compare multiple insurance options at once and choose the best coverage option for you.

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Consumers reduce driving to save 

Many Americans have changed their driving habits and plans to buy a car amid high gas prices and rising inflation, according to a recent survey from Quicken. 

As prices rise across the U.S., many Americans said they’ve changed their daily lifestyles, including how much they eat out and the foods they buy, according to the survey. And about two-thirds (66%) also said they cut back on how much they’re driving.

The Consumer Price Index (CPI), a measure of inflation, increased by 8.5% annually in July, according to the latest report from the Bureau of Labor Statistics (BLS). This was a drop from 9.1% in June but still remains near record highs.

The price of gasoline fell 7.7% in July, offsetting increased costs in food and shelter, according to the report. The energy index also declined 4.6% over the month, even as costs for electricity increased.

If you are struggling amid rising inflation, switching to a lower auto insurance premium could help you save money each month. Contact Credible to speak to an auto insurance expert to see if this is the right option for you.

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