A new survey showed that policyholders in the U.S. don’t re-shop to find better coverage or rates.
One out of every three Americans have never re-shopped for a policy, say the results of a new insurance customer trends survey. The research found that almost half of all policyholders who have looked around for a better deal has not done so within the last year.
The research was conducted on homeowners insurance and auto insurance customers.
American consumers are risking overpaying for their coverage, say the results of a new Policygenius study. One third do not shop around for a better policy or an equivalent one for a lower price. Among those who do shop around, nearly 50 percent have not done so within the last year, meaning that the practice is not used regularly.
As a result of these insurance customer trends, millions of Americans may be missing the chance to save a substantial amount of money. Indeed, most people will say that comparing insurance rates is not their favorite way to spend their free time. However, by skipping this annual step, they may be volunteering to overpay for coverage they could find elsewhere at a more affordable rate.
These insurance customer trends are leaving policyholders behind in annual insurer rate setting.
Insurance companies typically change their rates on an annual basis. These adjustments may bring the rates up or down. That said, this doesn’t mean that all insurers will choose the same direction, nor does it mean that they’ll move their rates up or down as much as their competition. The only way for consumers to know how much they would pay by choosing an alternative insurer is to shop around.
There’s a strong chance you’re overpaying for your homeowners and/or auto insurance policies. 👀 https://t.co/4dxGgFKli2
— Policygenius (@Policygenius) January 20, 2019
The research found that among the consumers who did shop for better insurance rates, they saved an average of $417 per year, said a Value Penguin report. That statistic was for auto insurance alone. Still, homeowners also had a substantial opportunity to save. Homeowners insurance customers who shopped around annually saved $363 to $2,182 per year over what they would have paid if they had not shopped around.
Clearly, the savings is not small. The current insurance trends are making coverage far less affordable for policyholders. Moreover, the overspending is unnecessary. By taking the opportunity to comparison shop and find a suitable policy for a better price, a consumer will find hundreds, if not thousands of dollars can be saved on auto and homeowners insurance each year.