More consumers are shopping around for coverage, but not purchasing it
More people are shopping around for auto insurance coverage, but fewer are actually changing their carriers, according to the latest J.D. Power 2015 U.S. Insurance Shopping Study. Shopping for insurance coverage has become quite easy, with many consumers choosing to do so from their mobile devices. With shopping becoming easier, consumers are beginning to look for alternatives to their existing auto insurance policies, but they may not be buying new policies even if the policies they find are better than what they have.
39% of consumers in the US shopped for new insurance policies in 2014
According to the study, 39% of consumers in the U.S. received new auto insurance quotes last year, an increase from the 32% that was reported in 2013. Last year, relatively few people opted to switch insurers. The study shows that approximately 29% of those that shopped around for coverage chose to switch carriers in 2014, which is down from the 37% of consumers that had switched coverage in 2013. One of the reasons that people may be staying with their insurers is that they cannot find better deals elsewhere.
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Consumers are not finding good deals with other insurance carriers
The study suggests that consumers are shopping around for coverage because of higher insurance rates. These rates are pushing more people into the market, but few can find better deals than what they have with their current insurer. The study notes that there has been a 6% increase in advertising spending among auto insurance providers, with many of these advertisements being focused on the ability of consumers to save money. Despite these ads, however, consumers are finding it nearly impossible to save money when switching auto insurers.
No single insurer offers the best rates nationwide
Auto insurance is becoming more expensive in many parts of the country, but rates are growing slower for some drivers than they are for others. Drivers are often encouraged to shop around extensively when looking for new coverage. As many insurers operate in multiple states, one insurer does not typically over the most expensive coverage nationwide. Rates for coverage from a single insurer differ from state to state, based on the market within that state.