According to new research from insurance comparison site ValuePenguin, more than 90% of car insurance customers who switch companies save money — but most policyholders miss out by failing to shop around.
According to the study, 92% of auto insurance customers who switched companies during their last renewal period saved money.
“This impact was limited, however, as 65% of policyholders did not request additional quotes during their renewal period,” the study said.
ValuePenguin has found that customers who do not typically seek additional quotes during their renewal period may benefit from reconsidering this decision. Thirty-nine percent of survey respondents who did not switch car insurance companies believed their insurer offered the best rates. But 26% of those who recently switched to a new car insurer saved $200 or more per year. This indicates that those who don’t shop may not get the full picture, ValuePenguin said.
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Whether they shopped around or not, nearly 40% of auto insurance policyholders saw their rates go up during their last renewal period, ValuePenguin found. The company said rates are expected to rise an average of 0.6% in the United States this year.
To combat this, nearly 30% of those whose car insurance rates increased reduced their coverage to save money — a tactic that ValuePenguin says could be risky.
“While ditching comprehensive insurance lowers your premiums, a March 2022 ValuePenguin survey found that many consumers mistakenly believe they would be covered in the event of car theft or theft-related damage,” the company said.