More than 90% of auto insurance customers who switch companies save money – but most policyholders are missing out by failing to shop around, according to a new study by insurance comparison site ValuePenguin.
According to the study, 92% of auto insurance customers who switched companies during their most recent renewal period saved money.
“This impact was limited, however, as 65% of policyholders didn’t seek additional quotes during their renewal period,” the study said.
ValuePenguin found that customers who don’t generally seek out additional quotes during their renewal period could benefit from reconsidering that decision. Thirty-nine percent of survey respondents who didn’t switch auto insurance companies believed their insurer offered the best rates. But 26% of those who recently switched to a new auto insurer saved $200 or more annually. That indicates that those who don’t shop around may not have the full picture, ValuePenguin said.
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Whether they shopped around or not, almost 40% of auto insurance policyholders saw their rates increase during their most recent renewal period, ValuePenguin found. The company said rates were expected to rise by an average of 0.6% across the US this year.
To combat this, nearly 30% of those whose auto insurance rates went up decreased their coverage to save money – a tactic that ValuePenguin warned could be risky.
“While dropping comprehensive insurance lowers your premiums, a March 2022 ValuePenguin survey found that many consumers mistakenly think they’d be covered for car theft or theft-related damage,” the company said.