AUTO INSURANCE BENCHMARK STUDY

Measuring the online experience ofauto insurance companies

Author: Ann RochanayonSr. Director of UX/CX Research at UserZoom

THE UX INSIGHTS COMPANY

2

Contents

Introduction

Study Methodology

Summary

Task Results

Task 1: Open Research

Task 2: Getting a Quote

Overall Findings

Recommendations

Appendix

About UserZoom

3

4

6

10

10

19

24

31

33

37

3

Introduction

The Internet is a common resource for those shopping for auto insurance. An increasing number of consumers gather information about auto insurance online. According to a 2012 McKinsey Research study, 73% use the Internet to gather auto insurance information, an increase from 55% in 20081.

To gain further insight into consumer behavior while researching auto insurance online, UserZoom’s researchers created a competitive benchmark study with the following goals:

1. Determine what sites participants visit to research autoinsurance options.

2. Understand which auto insurance company offers thebest online quote experience.

3. Assess the impact of the online quote process on brandperception, Net Promoter Score and conversion.

2008

2012

55%73%

http://www.mckinsey.com/client_service/financial_services/latest_thinking/insurance,“Winning share and customer loyalty in auto insurance: Insights from McKinsey’s 2012 auto insurance Customer Insights research”

4

Study Methodology

200 participantswere recruited by

email froma panel provider

Sites evaluated:

US participants

N=200 (~50 participants per site)

Between-subjects design

Ages 25+

Must own a vehicle

Participated via. desktop / laptop

Participants were randomly assigned to evaluate one of four auto insurance companies after completing an open research task

Participants were invited from a panel to answer a few questions in the screener survey to ensure they meet the demographic criteria for the study. Qualified participants were taken directly into the study where they’re asked a few market research questions and assigned to perform two tasks. The first was an open task where participants may visit any site to research auto insurance options. For the second task, participants were randomly assigned to one of the four sites to evaluate the auto insurance quote process. Upon completion of the tasks, participants answered a few questions about their overall experience in the wrap-up section.

Research Auto Insurance OptionsStarting from this BLANK WEB PAGE,

research options for auto insurance online. Do not go through the quote process.

Navigate the web as you typically would if you were actually researching auto

insurance in real life.

Customer ServiceObtain an auto insurance quote on the

[COMPANY] site.

Wrap-up

5

Screener

Tasks

Introduction

6

Summary

Open Research TaskSite Specific Findings

7

83% of study participants indicated they typically research auto insurance coverage and pricing online, more than any other method of research. This underscores the importance of having a good web presence, o�ering the information users seek and providing a good online experience.

During the open research task, participants began the process of researching options for auto insurance on a blank page to eliminate any potential bias introduced by a specific start page. The most common types of information participants looked for were auto insurance quotes, rate comparison, and discount information.

Most succeeded in finding the information they were seeking, however, some participants were unable to find information such as a comparison tool or site, independent reviews, and discount information.

Search engines were the most common type of site participants visited first (56%) with Google being the most popular search engine. 60% of search terms used were general, with terms such as “Auto insurance, car insurance” being most frequently used. Participants also searched for specific insurance companies, but in much lower numbers.

Specific insurance sites were the second most common type of site first visited by participants (41%) with GEICO, Allstate, Progressive, and State Farm being the top visited insurance sites. These top four sites correspond with the insurance sites participants were most aware of and also the insurance sites with the highest marketing spend.

Open Research Task

8

Site Speci�c Findings

User Experience Rankings

Progressive edged out Allstate and other auto insurance companies tested in this benchmark in the User Experience Rankings. GEICO had a solid third place ranking, while AAA lagged behind all sites.

To assess the overall user experience of the sites, UserZoom captured over twelve measures of the participant experience while obtaining an online auto insurance quote. The user experience metrics captured include key performance indicators such as task effectiveness, task efficiency, ease of use, trust and conversion. The User Experience Rankings were derived based on how each site performed according to each user experience metric.

Progressive faresthe best in the

User ExperienceRankings

1. 2. 3. 4.

Site Speci�c Findings

Participants rated Progressive highest on several key metrics, including Organization and Layout, Overall Satisfaction and Likelihood to Visit the Site in the Future to Request a Quote.

Allstate rated highest on ease of obtaining a quote and more participants felt the quote process was just the right length and required the right amount of information, although more time was spent obtaining a quote on Allstate than on the other sites.

Participants were most successful on the GEICO site when asked to obtain a quote. GEICO also rated highest on ease of use. However, one of the biggest frustrations with GEICO was the amount of information required and not enough explanation as to why the information is required.

Participants experienced the fewest obstacles while obtaining a quote on Allstate. Allstate also had the highest brand perception (pre and post study) and the greatest increases in associations with positive brand attributes.

Allstate also had the highest Net Promoter Score.

In unaided comments, many participants found the quote process easy and fast. Participants also perceived that Progressive handles privacy and security better than the other sites studied.

AAA was rated the lowest by participants across all key performance metrics (i.e., Ease of Obtaining a Quote, Organization and Layout, Overall Satisfaction, Likelihood to Visit Site in the Future to Request a Quote, and Net Promoter Score). Out of the sites studied, AAA had the lowest brand awareness. Note that AAA also provides a different site experience depending on the participant’s region.

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Task 1Open Research

Description:Starting from this BLANK WEB PAGE,

research options for auto insurance online. Do not go through the quote

process. Navigate the web as you typically would if you were actually

researching auto insurance in real life.

auto insurance

10

Which of the following type(s) of information did you look for while researching auto insurance options [Check all that apply].

N = 200

Auto insurance quotes

Rate Comparison

Rate discouunt information

How to choose coverage / deductible amounts

Multi policy discount

Determine how much insurance needed

Information about agents

Other

56%

52%

44%

36%

36%

29%

22%

5%

Participants were most interested in looking for auto insurance quotes, rate comparison, and rate discount information.

11

Nearly all participants were successful in researching options for auto insurance online, while 78% found the process easy. Those who had di�culty, primarily were frustrated with the questions required to obtain a quote.

Were you able to research optionsfor auto insurance?

How difficult or easy was it to research optionsfor auto insurance online?

Why was it less than easy to research options for auto insurance online?

Too manyquestions

that I couldn’tanswer

2% 20% 78%

2%

98%

They don’tgive quotes

without all yourinformation

They askso many

questions thatdon’t matter

They want too much personal info up front.I’m not willing to give it all away for fear that they’d

plague me with repeated phone calls or emails or mail

YesNo

very difficult (1-2)Neutral (3-5)Very easy (6-7)

12

Although most found the information they sought, a few had di�culty nding information such as comparison tool or site, independent reviews, and discount information.

“An easy comparison site of all car insurance”

“A third party tool for rate comparison and reviews”

“A place where you compare most major insurances. Or compare other insurers on the site”

“Discounts for good driving record, seat belt use, airbags”

“More information on insurance agents near me that sell insurance from more than one company”

“Multi-insurance – to put my house and auto together”

“Each site almost immediately wanted name, contact and demographic info; not even able to get ranges of costs without providing them personally identifiable info. Makes researching tough without becoming a sales target”

Please list any information you expected to find about auto insurance, but didn’t.

13

First Type of Site Visited

First Search Engine Visited

During the open search task, participants visited just under2 sites and spent 2.61 minutes on average. 59% used asearch engine at anytime during the task.

3% 1%

41%56%

73%

11%

9%

1% 6%

N = 190

N = 107

Open Task Stats

Average Number of Sites Visited

Average Time Spent

Used search at anytime

1.74

2.61 min

59%

56% used a search engine to begin the process of researching auto insurance. Of the search engines �rst visited, Google was the most popular (73%) followed distantly by Bing (11%) and Yahoo! (9%).

Search EngineInsurance SiteInsurance Broker

GoogleBingYahoo

MSNOther

Other

14

First Type of Site Visited

First Insurance Company Site Visited

Search EngineInsurance SiteInsurance Broker

Other GEICOAllstateProgressive

State FarmFarmersLiberty Mutual

MercuryUSAAOther

3% 1%

41%56%

21%16%

13%

27%6%

6%

3%

5%

N = 190

N = 77

3%

Many participants also had a speci�c insurance company in mind when they began their research. 41% started the open research task on an insurance company website. GEICO and Allstate received the most visits from participants beginning their tasks.

15

Percentage Who Visited Insurance SitesANYTIME During the Open Task

GEICO

Progressive

Allstate

State Farm

Liberty Mutual

Nationwide

AAA

Esurance

Travelers

USAA

Other

21%

18%

14%

10%

5%

5%

3%

3%

3%

2%

9%

84% of all participants visited an insurance company site at anytime during their open task. GEICO was also the most visited insurance company site overall. 21% visited GEICO at anytime during the course of their research, followed by Progressive (18%), and Allstate (14%).

N = 19016

Search Terms

Insurance quotes, online insurance quotes

Metlife, Metlife auto insurance

Travelers insurance

Farmers, farmers insurance

Hartford, Hartford insurance

Mercury insurance

21st century

Amica

Auto insurance review

Free car insurance quotes online

Rating territory insurance

Shelter insurance

Safeco

3%

3%

3%

2%

2%

2%

1%

1%

1%

1%

1%

1%

1%

Search Terms

Auto insurance, car insurance

Auto insurance companies, car insurancecompanies

State farm, state farm car insurance, statefarm quote

Allstate, allstate.com

Geico

Auto insurance quotes, car insurance quotes

Liberty Mutual

Cheap, cheapest auto insurance

Nationwide, nationwide insurance

Progressive, progressive auto insurance

AAA, AAA insurance, AAA.com

Insurance

Car insurance comparison, compare autoinsurance

22%

14%

9%

8%

8%

7%

5%

4%

4%

4%

4%

4%

3%

N = 190

60% used general search terms to research auto insurance options, while 58% searched for speci�c insurance companies during their research process.

General search terms usedSearched for specific insurance companies

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The following video illustrates one of the more common behaviors participants exhibited when asked to research auto insurance options

starting from a blank page.

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Task 2Getting a Quote

Description:Obtain an auto insurance quote on the

[COMPANY].

When asked to obtain a quote, participants were most successful on the GEICO site and rated GEICO highest on ease of use. Allstate had the second-highest ratings and participants encountered the least number of issues while performing the task.

Site with the highest ratingSite with the lowest rating

Task success: Responded “Yes” when asked, “Were you able to obtain an auto insurance quote on [COMPANY] site?Ease of use: Responded 6-7 on a 7-point scale when asked, “How difficult or easy was it to obtain auto insurance information on this site?” where 1 = Very difficult and 7 = Very easy.Did not encounter issues: Responded “I did not encounter any problems or frustrations” when asked, “Which of the following problems and frustrations, if any, did you encounter while obtaining an auto insurance quote?”

*Significantly lower than site with highest rating at 90% CI

Key Performance Metrics

Task success

Ease of use

Did not encounter issues

62%*

46%*

34%

80%

63%

47%

82%

69%

39%

76%

52%*

42%

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Key Performance Metrics

Right length of time to obtain quote

Right amount of info required

Time on task (min)

60%

62%

4.65

76%

84%

6.98

67%

61%

4.68

64%

68%

4.45

Although participants spent more time obtaining a quote on Allstate, they felt Allstate required the right amount of information and the quote process took the right amount of time.

Site with the highest ratingSite with the lowest rating

Right length of time to obtain quote: Responded “Just right” when asked “How would you rate the length of time to obtain an auto insurance quote on the GEICO site?”Right amount of info required: Responded “Just right” when asked, “Which of the following describes the amount of information required to obtain a quote on this site?”

*Significantly lower than site with highest rating at 90% CI

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Participants had more di�culty obtaining a quote on AAA due to a variety of obstacles. AAA participants had more problems determining where to start the quote process and technical issues. Allstate participants encountered the least problems and frustrations.

QuoteProcess

InformationRequired

Scrolling

TecnicalIssue

Unclear where to go to start the quote process

Process of obtaining a quote was confusing

Unsure where I was at in quote process

Too many steps required

Unsure how to move forward with obtaining a quote

Unsure what info was required vs. optional

Too much information was needed

Didn’t understand why certain info was required

Didn’t understand terminology used

Too much scrolling required

Encountered an error / technical issue

Site was slow

Other

I did not encounter any problems or frustrations

16%6%

2%8%

4%2%

6%4%

18%24%

20%26%

16%6%

2%8%

6%10%

6%6%

16%10%

16%16%

16%6%

2%6%

18%16%

22%20%

10%6%

12%8%

12%8%

22%10%

4%0%

8%2%

4%0%

6%4%

12%12%12%

8%

34%47%

39%42%

Problems and Frustrations

AAA Allstate GEICO Progressive

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23

“I liked that it had options to customize a quote or

get a standard or premium quote.”

“The site asked simple, easy-to-understand

questions in gathering information in how to best

help me get the best coverage I could afford.”

“It was straightforward what to type in where.”

“It was easy to fill out the information. Nothing confusing about it.”

“The process was easy to follow and the questioning unfolded in a logical way.

The webpages were designed well and easy to

read.”

“The process was easy to follow and the layout made

sense in the way it was organized… Also I

appreciate that I could skip enter my social

security number because I do not feel like it is

necessary to reveal this information in order to get

a quote.”

“Most questions were easy to answer without having

your policy in front of you.”

“It looks up discounts and tries to verify your correct

information.”

“It was easy to understand what information they

needed for the quote.”

“I found the forms very easy and self explanatory.”

“First question asked was whether I wanted to

bundle policies to save more; liked that” Did

provide option to explain why each / most questions

were being asked.”

“The site pages were designed well and let me answer the way I wanted. They made suggestions or gave me options. I thought it was a very well thought

out process and the quote was a decent amount.”

“Could use name my price. Gave comparisons.

Easy, quick.”

What did users like?

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Overal Findings

Study participants found the Allstate easiest to use to obtain a quote, signi�cantly easier than AAA, the lowest rated site across all key performance metrics. There were no other meaningful di�erences in other key performance metrics.

Progressive rated highest on Organization and Layout, Overall Satisfaction and on Likelihood to Visit to Request a Quote in the Future.

Key Performance Metrics

Ease of obtaining a quote

Organization and layout

Overall satisfaction

Likelihood to visit to request a quotein the future

42%*

56%

50%

34%

65%

63%

57%

43%

61%

59%

55%

39%

54%

66%

60%

50%

*Significantly lower than site with highest rating at 90% CI

Site with the highest ratingSite with the lowest rating

Ease of obtaining a quote, Organization and layout, and Satisfaction: Responded 6-7 on a 7-point scale when asked, “Please rate the [COMPANY] site on the following” where 1 = Negative and 7 = PositiveLikelihood to visit to request a quote in the future: Responded 6-7 on a 7-point scale when asked, “How likely would you be to visit the [COMPANY] site to request a quote in the future?” where 1 = Not at all likely and 7=Extremely likely

25

Participants also rated Progressive highest in terms of privacy, security, and handling personal information compared to other sites. Progressive provides reassurance to users about privacy and security in several places during the quote process.

Based on your experience with the site today, please rate your level of agreement with the following statements.

Privacy and Trust

The site seems to handle privacyand security well

I would trust this company with mypersonal information

54%

44%

51%

57%

48%*

44%

66%

58%

*Significantly lower than site with highest rating at 90% CI

Site with the highest ratingSite with the lowest rating

26

Brand perception slightly decreased for all sites after interacting with the sites to obtain a quote. The drops were not signi�cant.

Participants had a better impression of the Allstate site both pre and post-study with brand perception ratings signi�cantly higher than all sites.

Pre vs. Post Brand Perception

Based on what you know / your experience today, please rate your perception of [COMPANY].

PrePost

56%

46%

73%

63%

52%*

45%*

55%*

48%

AAA Allstate GEICO Progressive

N=

39

N=

50

N=

49

N=

51

N=

46

N=

49

N=

47

N=

50

Site Delta

AAA

Allstate

GEICO

Progressive

-10%

-10%

-7%

-7%

*Significantly lower than site with highest rating at 90% CI

Responses of 6-7 shown from a 7-point scale where 1 = Negative and 7=Positive27

In addition to having the best perceived brand perception, Allstate also had the highest Net Promoter Score with more site promoters than detractors.

How likely is it that you would recommend the [COMPANY] website to a friend or a colleague?

AAA

Allstate

GEICO

Progressive

-34%

4%

-22%

-8%

Detractors (0 -6)Passivees (7-8)Promoters (9-10)

24%18%58%

35%33%31%

24%28%47%

36%20%44%

NPS

28

29

Allstate also had the most increases in positive brand attributes associated with the company. GEICO and Progressive saw a few increases as well.

Change in Associated Positive Brand Attributes Pre vs. Post Site Evaluation

Which of the following words or phrases would you use to describe [COMPANY]?

Innovative

Comprehensive

Trustworthy

Dependable

Established

Customer-oriented

Convenient

Helpful

Easy

Accessible

Value

Inexpensive

16%-8%

-10%2%

-16%-26%

-4%0%

0%0%

9%0%

-6%-6%-6%

0%

-14%-16%

-19%-3%

-26%-22%

-6%-11%

-12%17%

2%-3%

-9%-6%

-4%0%

-14%8%

-9%-1%

-11%-2%

-4%-18%

-3%21%

4%8%

7%12%

-2%-5%

AAAAllstate

GEICOProgressive

30

After interacting with the site, more participants perceived Allstate, AAA, and Progressive as ‘untrustworthy’ and more participants perceived Progressive as ‘expensive’.

Meanwhile, associations with ‘untrustworthy’ and ‘expensive’ decreased for GEICO.

Change in Associated Negative Brand Attributes Pre vs. Post Site Evaluation

Untrustworthy

Expensive

6%8%

-1%4%

-4%10%

-7%8%

Which of the following words or phrases would you use to describe [COMPANY]?

AAAAllstate

GEICOProgressive

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Recommendations

1. Ensure that the site is optimized for common search terms users utilize when searching for auto insurance.

2. Consider paid search ads with Google and possibly Yahoo! and Bing.

3. Reassure users that their privacy is protected and their information is secure.Obtain certification from trusted third parties and use the privacy and security seal / logo during the quote process to help visually illustrate the site is secure.

Provide visible and easy access to the privacy policy link throughout the entire quote process.

3. If information about the user is being pulled from other sources to generate a quote, clearly disclose this. Allow users the opportunity to edit this information if needed.

4. Provide clear visual indicators of where users are during the quote process.

5. Provide easy access to further information / explanation as to why information is needed.

6. Include links to explanations to industry terms (e.g., types of coverage) that users may not understand.

7. Clearly indicate which information is required to proceed with the quote process.

8. If there is an error in the quote process, explain what the error is and how to fix it. The error should be marked inline. Ideally take users directly to the error.

9. Provide guidance on how to fill out quote (e.g., format for date of birth).

10. Allow certain types of information to be optional, but explain why providing the information would be useful (e.g., Social Security Number, Vehicle Identification Number (VIN)).

11. Assist users in finding discount opportunities.

32

33

Appendix

How do you typically research auto insurance coverage and pricing? [Check all that apply]

A majority of participants typically research auto insurance coverage and pricing online, more than any other method.

Research Online

Discuss with an insurance agent

Discuss with friends / family

Review Information I receive through the mail

Email an insurance company

I have never researched auto insurance

Other

83%

55%

43%

37%

22%

37%

22%

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GEICO had the highest level of brand awareness, followed closely by Allstate, Progressive, State Farm, and Farmers. These four companies also have the highest marketing spend.

Which of the following auto insurance companies have you heard of? [Check all that apply]

GEICO

Allstate

Progressive

State Farm

Farmers

Nationwide

Liberty Mutual

AAA

MetLife

Travelers

21st Century

The Hartford

USAA

Mercury

Other

None of the above

Sites evaluated in the UserZoom benchmarking study

95%

94%

94%

93%

91%

87%

80%

79%

76%

70%

61%

60%

57%

23%

7%

1%N = 200

http://www.mckinsey.com/client_service/financial_services/latest_thinking/insurance,“Winning share and customer loyalty in auto insurance: Insights from McKinsey’s 2012 auto insurance Customer Insights research”

35

A shorter quote process with a less accurate quote, but less information requiredA longer quote process with a more accurate quote, but more information required

If you were planning to switch auto insurance, which of the following would you prefer when seeking auto insurance quotes?

Participants were divided when asked if they preferred a shorter

quote process that is less accurate or a longer quote process with a

more accurate quote.

49%51%

36

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UserZoom is the #1 platform for cost-effective and agile usability testing and user experience analytics. We offer a worry-free, all-in-one solution: software + services + recruitment.

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About UserZoom

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THE UX INSIGHTS COMPANY

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Card SortingTree TestingClick TestingPrototype Testing

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Live Web & Mobile TrueIntent Studies (Intercepts)Online SurveysWeb Analytics Integration

CX Measurement / VOC

Our UX Research Teamensures your success:

1. Strategizing2. Initial training & support3. Setting up studies4. Managing all recruiting tasks5. Launching, monitoring6. Analyzing results, reporting

We recruit in 3 ways:1. Using a Panel

Strict quality controlsNational and international reach

2. Customized invitation layer

Intercept studies

3. Invitation links

Private email list

Sof

twar

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rm

Recruiting Solutions

UX Research Services

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London (UK)

Thomas House,

84 Eccleston Square

London, SW1VPXPhone: 0203 948 1360

Manchester (UK)

4-6 Bank Square Wilmslow,Cheshire SK9 1ANPhone: + 44 (0) 1625 525 650

San Jose, CA (USA)

10 Almaden Blvd #250,San Jose, CA 95113Phone: 866-599-1550

Denver, CO (USA)

1630 Welton Street #500CDenver, CO 80202

München (DE)

Kronstadterstrasse 4,81677 MünchenPhone: +49 (0)89 45 35 35 25

Madrid (Spain)

C/ O’Donnell 12, 2ª planta, 28009, MadridPhone: +(34) 91 111 48 82

Barcelona (Spain)

Av. Diagonal, 618 3ºDE08021 BarcelonaPhone: +34 93 414 7554

THE UX INSIGHTS COMPANY

www.userzoom.com

London (UK)

Thomas House,

84 Eccleston Square

London, SW1VPXPhone: 0203 948 1360

Manchester (UK)

4-6 Bank Square Wilmslow,Cheshire SK9 1ANPhone: + 44 (0) 1625 525 650

San Jose, CA (USA)

10 Almaden Blvd #250,San Jose, CA 95113Phone: 866-599-1550

Denver, CO (USA)

1630 Welton Street #500CDenver, CO 80202

München (DE)

Kronstadterstrasse 4,81677 MünchenPhone: +49 (0)89 45 35 35 25

Madrid (Spain)

C/ O’Donnell 12, 2ª planta, 28009, MadridPhone: +(34) 91 111 48 82

Barcelona (Spain)

Av. Diagonal, 618 3ºDE08021 BarcelonaPhone: +34 93 414 7554