Consumers Should Jump Ship to Other Car Insurance Companies

A larger number of auto insurancecustomers who shop around for coverage are willing to switch car insurance companies after conducting their research, according to a new report from J.D. Power and Associates. Despite an increase in the number of people willing to leave their companies, the majority of consumers are still failing to shop around for coverage that could lower their annual costs.

Consumers Change Car Insurance Companies

When an auto insurance policy term ends, experts always recommend shopping for new coverage options from different car insurance companies. However, according to the J.D. Power and Associates report, only 25 percent of insurance customers shopped for a new insurer in the past 12 months — an 8 percent drop from 2011.

Among that group of policyholders who chose to shop around, 43 percent switched insurance carriers, which is the highest rate since the study began measuring retention in 2008 and a 3 percent increase from 2011.

The numbers were telling for J.D. Power and Associates researchers, as they determined that while some consumers may be happy with their coverage and therefore are not shopping around, many don’t think to seek new coverage at the end of a term.

If consumers did look around, however, they might find there are other insurers out there who can meet their needs more effectively than their current company.

Why Acquiring Car Insurance Quotes is Important

Many auto insurance consumers don’t realize just how important shopping around for car insurance quotes during the renewal period can be. Auto insurance rates fluctuate often and vary from company to company, meaning a quote received six months ago could be considerably lower now.

Also, changes to consumers’ own credit reports and credit scores, along with specific auto insurance discounts, affect rates in a way that could lower costs by hundreds per year.

According to the J.D. Power report, the process of finding coverage is more convenient with online options that allow consumers to comparison shop with car insurance quotes on one website, then purchase auto insurance directly from the insurer without leaving their home.