Why People Do Not Shop for Automobile Insurance

You would think that with all the convenience and availability online and offline motorists would be keener to get alternative quotes to save money. Latest figures suggest that more and more drivers are upset about increasing renewal costs and starting to shop for auto insurance. Yet, 2/3 of policyholders renew without getting a single quote. We will look at the reasons below and try to figure out why they are reluctant.

Not Believing in Discounts

Many people think that insurance isn’t something you could negotiate or ask for discounts. They are happy to shop around for many things like clothing or furniture but they may not be confident enough on policies. Often, the terminology sounds complicated and an agent can quickly scare them into submission.

It is actually a common practice among agents. The first thing they say to a client who says they can find cheaper quotes somewhere else is that “the policy coverage may not be good”. It is total crap because the coverage may actually be better and some of the cheaper vehicle insurance companies are within the top 10 largest in the USA.

Not Pressured Financially

The second key reason is that most motorists have been earning good money and they weren’t financially pressured. There are signs that this may change as inflation is eroding people’s purchasing power and high energy and food prices are digging into wages even more. Suddenly, people start saying that they need to push back and find cheaper products and suppliers.

A survey carried out among motorists who recently shopped for car insurance shows that a large number of participants do so because they just received higher than expected renewal quotes and they want to cut it down even if it means they need to switch to another provider. Hopefully, many of them will find better deals and make it a habit of getting alternative quotes at least once a year.

Looking for Excuses for Laziness

Let’s face it. Automobile insurance is a boring subject and many people don’t enjoy researching it. Even though they may know they can save money by shopping around they keep putting it off until their policies automatically renew. Auto-renewal may appear to be a kind gesture by insurers but it is one of the most brilliant marketing tricks they have ever come up with. They give people this safe feeling that even if they don’t do anything they will be alright.

The worst of the mind tricks is that a large number of people believe their current vehicle insurance providers will look at all the possible discounts and offer their lowest rates to their loyal customers. This is hardly ever the case and many policyholders aren’t transferred to lower rates or offered special discounts, which is often offered to new applicants.

The sad part of it all is that many motorists could actually get cheaper rates from their current insurers if they applied as a new customer and got quotes. So, people should not hold back next time they get their renewal terms and shop around until they find a better deal and fully satisfied with the new provider and policy.

Comments are closed.