We all know that competition generally returns better prices for products but that holds extra true for car insurance quotes. A survey from Gocompare shows that approximately 25% of consumers do not change companies when it comes to car insurance, homeowners insurance, and other financial accounts. The article “Consumers Benefit From Competition for Car Insurance Quotes and Bank Rates” by Ed Dixon on Newstaar.com points out how drivers are missing out since car insurance is a highly competitive industry.
Most car insurance companies do not offer loyalty benefits for staying with the same insurer, so with that said, why aren’t more people shopping around to compare quotes? Awareness is definitely one concern. Many consumers aren’t aware of how highly competitive the market really is and don’t even think of changing companies. They inadvertently have loyalty to an insurer and they’re not even sure why.
With so much competition in the car insurance arena, drivers who are no shopping around are missing on a huge opportunity to get lower rates, especially if they have a good driving record. If you’ve been with the same company for years and years, your rates may have slightly gone up since you first became a customer and you don’t even realize it. By shopping around you are getting other companies to fight for your business and offer you market low prices. There’s no downside to shopping around. If no one can beat your current price then you just stay with your current provider and no harm done. You’ll likely be surprised how much money you can actually save.