Most people who switch car insurance companies save money in the process. Yet relatively few drivers bother to shop around for better coverage, according to a new ValuePenguin survey of 1,260 consumers who have auto insurance policies.
An overwhelming majority – 92% – of those who switch companies end up paying less for their auto insurance. In fact, 26% save at least $200 annually.
Yet 65% of drivers don’t bother to take the time to get quotes from multiple companies when their policy expires.
Why aren’t more people comparing car insurance rates? The ValuePenguin survey reveals that a significant number of drivers – 39% – are convinced that their insurer offers the best rate.
However, the fact that a quarter of drivers who switch companies experience substantial savings suggests that many people are wrong about the value of their current insurance company, argues ValuePenguin.
Looking for another great reason to compare quotes? ValuePenguin reports that 40% of survey respondents said their rates increased during the last renewal period. A little shopping around for fares could significantly reduce these costs.
Unfortunately, instead of shopping around for a better policy, many drivers are reacting to these rising costs by making what could be a bad decision: reducing their level of coverage to save money. Thirty percent of survey respondents passed this milestone, according to ValuePenguin’s findings.
If you’re worried about rising insurance costs, check out Money Talks News partner The Zebra. Within minutes, you can get free rate comparisons from up to 200 providers.
The Zebra says drivers who use the site save an average of $440 a year on car insurance costs.
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