Car Insurance Shopping Statistics in a Recession
Despite spokespeople such as intelligent troglodytes, lovable geckos, and smiley salesgirls with big, tripped-out nametags, people are shopping less for auto insurance according to a J.D. Power and Associates survey. It seems that the current economic climate may be affecting how car owners insure their vehicles. Despite the possibility that consumers could save money by shopping for a cheaper auto insurance quote, people have a “hunker-down” approach to riding through the tough economic times.
Statistics Point to Frugality
According to the survey, 28 percent of current auto insurance holders are shopping for new and cheaper auto insurance, compared to 36 percent in 2008. And even though there are just over a quarter of car owners shopping for other insurance, a whopping 90 percent retain their current insurer rather than switching to a new carrier.
Determining Factors are Customer Service and Risk Aversion
A preference on how auto insurers serve their customers plays a big part of how and why consumers retain their current carrier. Many customers prefer contact with a local agent, while others may enjoy the flexibility and convenience of an insurer’s website or the ability to converse with a liver person at a call center.
According to the study, one conclusion of why consumers prefer to hold on to their current insurer may be the risk of a new provider. A number of auto insurers have had negative press in 2009. For many, it may seem safer to hold on to what they know rather than risk the chance of poor coverage or service.
And lowest price is not always the biggest reason auto owners switch insurance companies. Ten percent of shoppers responded that they did not choose a cheaper quote when offered. For many auto owners, a high level of service and reputation is more important that a lower premium.
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