Auto Insurance: Drivers Cut Down Shopping Around
Monday, July 13th, 2009Despite the fact that shopping around can often save you a lot of money on auto insurance rates, Americans are pulling back and sticking with their current insurers according to the article “Motorists Scale Back Shopping for Auto Insurance, Survey Shows” by Jamie McGee from Bloomberg.com.
This information comes from a J.D. Power and Associates survey which shows that customers looking for new auto insurance companies fell to 28% from 36% the previous year. Jeremy Bowler is the senior director of insurance at J.D. Power and he said that some companies did report a rebound in recent months. He believes customers have a “hunker-down” mentality. People want to stay low risk in today’s economic environment so they are staying with insurers they know they can trust.
Auto insurance quotes have decreased since drivers are reducing coverage to save money in response to the recession. Consumers more than anything said that price is the reason for their shopping around, and more than 1/3 said price was the reason for switching carriers. 90% of customers stay with their current provider, according to J.D. Power’s survey.
