They complain about the cost, then do nothing to lower it.
When it comes to car insurance, like most things, Americans are signing the dotted line without fully knowing what they’re getting into.
Over half (53 percent) say they don’t read their policy in its entirety, says Enterprise Holdings. And even though almost a third say they pay too much for car insurance, 38 percent haven’t tried to compare prices or shop around in the last three or more years.
Why aren’t Americans saving?
One reason so many Americans are overlooking car insurance savings could be that they don’t know they can shop around whenever they feel.
In a study from car insurance listing site insuranceQuotes, 46 percent of Americans said they didn’t know they could change their insurance plan at any time.
“Americans may think loyalty pays off, but when it comes to insurance, that’s not always the case,” says Laura Adams, insuranceQuotes.com’s senior analyst. “Many people make the mistake of shopping only when they move or buy a new car, but data shows that rates fluctuate even when you haven’t had any major life changes.”
Putting off car insurance shopping until a major life change makes sense since Americans kind of dread shopping for insurance…
- 66 percent say it’s time-consuming
- 44 percent say it’s frustrating
- 40 percent say it’s complicated
Shopping around isn’t the only way we’re missing out on savings — we also forget to ask our insurance providers about discounts.
Only 16 percent of Americans ask their car insurance company about common discounts on their policy, says another study from InsuranceQuotes.
The survey focused on discounts that customers would have to report themselves. They surveyed car insurance holders on whether they’ve asked their insurance provider about marriage, occupational, low mileage, defensive driver and good student discounts.
“These discounts can add up to hundreds of dollars per year, and in many cases, they reward people for things they were already doing,” Adams says. “I encourage everyone to be proactive and seek potential discounts at least once a year; it should only take a few minutes.”
Who’s to blame, the customer or provider?
Insurance premiums have increased two to three percent annually, says J.D. Power’s 2017 U.S. Insurance Shopping Study.
The marketing service information company has been researching the insurance shopping experience for 11 years now. Since 2013, auto insurance rates have increased and left customers unhappy with insurance costs.
Previous research by J.D. Power has shown insurance rate increases drove 39 percent to shop around for a better deal, but only 29 percent actually switched, because they couldn’t find a better price.
“Customers are being pushed into the market due to rate increases, but unless they can find a policy that will save them money, they’re not switching providers,” says Valerie Monet, director of the insurance practice at J.D. Power. “In fact, many of those customers can’t find a better deal and ultimately don’t switch insurers.”
Their annual studies have shown decreases in auto insurance shopping for two years in a row, and data suggests it’s due to noncompetitive pricing.
“The auto insurance industry is at an inflection point where customer patterns and behaviors are on the verge of shifting,” says Greg Hoeg, VP of insurance at J.D. Power. “To survive this period of price stagnation, insurers must develop strategies to be able to better differentiate not just to acquire new customers, but also to acquire customers with desirable risk profiles in order to maintain profitability.”
Article last modified on October 10, 2017. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Americans Overlook Car Insurance Savings - AMP.