Most people who change auto insurance companies save money in the process. Yet, relatively few drivers even bother to shop for better coverage, according to a new ValuePenguin survey of 1,260 consumers who have an auto insurance policy.
An overwhelming majority — 92% — of those who switch companies end up paying less for car 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 comes up for renewal.
Why don’t more people compare car insurance rates? The ValuePenguin survey finds that a substantial number of drivers — 39% — are convinced that their insurer offers the best rate.
However, the fact that one-quarter of drivers who change companies earn substantial savings suggests that many people are fooling themselves about the value their current insurance company offers, ValuePenguin contends.
Looking for another good reason to compare quotes? ValuePenguin says 40% of survey respondents said their rates increased during the most recent renewal period. A little rate shopping could trim those costs substantially.
Unfortunately, instead of shopping 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 took this step, according to ValuePenguin’s findings.
If rising insurance costs have you concerned, check out Money Talks News partner The Zebra. In a couple of 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 every year on car insurance costs.