According to recent research, one in every three drivers has not shopped around at all for a policy.
A recent study was conducted by insuranceQuotes.com, which has now issued its results in a report that showed that the average American driver hasn’t changed the auto insurance provider covering their vehicle in over a decade.
In fact, the average length of time since the last change in insurance companies was 12 years, said the report.
Furthermore, about one quarter of all drivers have been sticking with the same auto insurance company for over 16 years. Another 7 percent of motorists have been with the same insurer for over thirty years. What is staggering about that figure is that the drivers aren’t necessarily staying with the insurer because they have checked around and feel that they are being offered the best deal based on what other insurers are willing to offer them. In fact, one third of drivers (36 percent) never comparison shops for quotes for insurance policies.
Moreover, only 30 percent of drivers will shop for an insurance quote every few years.
In the report, senior analyst Laura Adams of insuranceQuotes.com explained that “Americans may think loyalty pays off, but when it comes to insurance, that’s not always the case.” She went on to point out that “If you haven’t shopped for auto insurance since the ’90s, it’s probably safe to say that you’re not getting the best deal.”
Those who have the lowest likelihood of comparison shopping for better car insurance prices include those in the Millennial generation, as well as senior citizens. Adams stated that it is common for people to consider other insurance companies only when they have purchased an new vehicle or when they move. However, “data shows that rates fluctuate even when you haven’t had any major life changes. This is especially true for young people.”
Among Americans, 46 percent don’t realize that you are actually entitled to change your auto insurance company whenever you want. It is Millennials who are the least likely to be informed about this right, as roughly 60 percent of policyholders in that age bracket believe that they are required to wait until the renewal date in order to be allowed to change insurers.