The insurance loyalty illusion – Why customers stick with brands they don’t like

Many insurance customers in the US are unhappy with their current provider – yet most aren’t planning to switch.

YouGov Financial Services CategoryView data shows that 7% of Americans are dissatisfied with their car insurance, 8% with home insurance, and 3% with life insurance. Yet even among these unhappy customers, most say they’ll be sticking with the same insurer over the next 12 months.

This raises a key question for marketers: what keeps a discontented customer from walking away?

One factor appears to be age. Among those who are dissatisfied but not planning to switch, the majority are 45 or older. In car insurance alone, 72% of this group falls into that bracket – and the pattern is similar for life and home insurance.

Even though dissatisfaction is present across insurance types, what people do with that dissatisfaction differs – and the gap becomes clearer when we look at those who say they’re planning to switch providers versus those who aren’t. While both groups say price matters, the switchers consistently rate a broader set of features as important showing signs of more active engagement.

In car insurance, switchers are significantly more likely to prioritise coverage limits and deductibles (60% vs. 43%), coverage options (64% vs. 52%), and digital usability (39% vs. 23%). And while 84% of switchers say price matters, 69% of non-switchers say the same –so price alone doesn’t drive the difference.

In life insurance, switchers place higher importance on payment flexibility (65% vs. 46%), digital platforms (53% vs. 29%), and policy renewal terms (48% vs. 30%). While customer service ranks high for both groups, other factors show that switchers are evaluating more aspects of the offer before making a move.

For home insurance, the same pattern holds. Price is still a top driver (86% vs. 72%), but switchers are more likely to care about bundling options (40% vs. 30%), claims process (49% vs. 44%), and policy exclusions (19% vs. 15%). They're reading the fine print and acting on it.

The difference isn’t just in dissatisfaction levels, it’s in decision-making behaviour. Switchers are more active, more critical, and more likely to be weighing their options. They’re approaching insurance like shoppers. The others? They’re coasting.

For marketers, this insight changes the targeting playbook. If most dissatisfied customers aren’t planning to switch, price-led messaging may fall flat. They may believe they’re already getting a good deal, or that switching is too much effort.

Instead, brands could focus on behavioural signals that cut across age and product lines: customers who are dissatisfied but actively comparing. These are the ones most open to persuasion, especially when messaging aligns with what they care about, not just what brands think they should.

As for the older cohort, they’re not loyal, just static. Retention strategies for this group might mean simplifying renewals, improving communication, or showing value through the channels they trust most.