I just got done reading the JD Powers 2014 US Insurance Shopping Study. I was surprised by some of the things they pointed out and not so surprised by others.
1. 97% of the US auto insurance customer’s stay with their current auto insurer. In fact they do not even pick up the phone and check with their current insurer to see if they could get a better price.
2. Only 3% of the 8% of the customers who shop actually switch insurers.
3. The customer who took the time to shop saved an average of $387 a year.
4. Most customers never get the best price because they shop the wrong places. Yep customers stay with the brands that do the most advertising. They know names like Allstate, State Farm etc., but there are literately thousands of auto insurers in the US you never hear about. How do find them, where do you shop? You could start on the internet, but I will tell you that your search will be skewed to the highest bidder. Again the big insurance companies buy the most ads on-line and they are not afraid to spend hundreds of dollars per click.
5. Pick up the phone and call an independent agent: Many agents represent insurance companies you don’t know about, but they are financially sound and are rated high in customer satisfaction. Often these insurer have great prices for their target market. You want the best value for your insurance dollar, put in the time and shop.
6. Don’t forget to ask about discounts. If you have had life changes like marriage, bought a new home, or even moved to a new location you might be eligible for discounts that you were not just 6 months ago.
7. Last but not least start shopping at least 60 days before your renewal date. Give yourself time to find the best auto insurance price.
If its been 3 to 5 years since you have shopped your auto insurance you may be leaving money in your insurers pocket. I know the big three auto insurers Allstate, State Farm and GEICO are pretty close in price, giving the customer the illusion that there is not much difference. But that’s not true if you take the road less traveled.
Go ahead and pick up the phone Call Bancorp’s Steve Jeter a licensed independent agent at 800-452-6826 and get an auto quote, find out how much you could be saving.
Have a great day
Rex Lesueur
