The vast majority of policyholders who switch auto insurance companies save money (92%). And that potential savings can be meaningful, with 26% of policyholders saving $200 or more a year after moving their auto insurance coverage to a new provider (more on this later).
But despite this, most policyholders (65%) don’t get outside quotes for comparison when their auto insurance policies are up for renewal. By region, a higher percentage of policyholders in the Northeast (70%) and West (69%) aren’t shopping around.
Age also appears to play a role in how likely a person is to shop around for better auto insurance rates. Baby boomers — ages 57 to 76 — are most likely not to shop for a lower rate before their policy renewal at 77%. Here’s a closer look:
Even starker, just 48% of consumers whose auto insurance rates increased during their most recent renewal shopped around for lower insurance premiums. That means the majority didn’t take the time to compare insurance companies — even after their rates rose.
When policyholders shop for additional quotes after a rate increase, they go about the process differently. Here’s how their most recent renewal went:
- 28% checked rates with just one other insurance company
- 13% got quotes from two insurance providers
- 7% made an effort to get three or more quotes from competing insurers
Interestingly, most policyholders (80%) stuck with their original insurer even after shopping around for a lower rate. In fact, 89% of consumers whose rate increased remained with the same auto insurance provider.
“backgroundColor”:”white”,”content”:”\u003C\/p\u003E\n\n\u003Cp\u003EThe vast majority of policyholders who \u003Cspan\u003E\u003Ca class=\”ShortcodeLink–root ShortcodeLink–black\” title=\”Switching Car Insurance Companies: When and How to Do It\” href=\”https:\/\/www.valuepenguin.com\/switching-car-insurance-companies-when-you-should-do-it\”\u003Eswitch auto insurance companies\u003C\/a\u003E\u003C\/span\u003E save money (92%). And that potential savings can be meaningful, with 26% of policyholders saving $200 or more a year after moving their auto insurance coverage to a new provider (more on this later).\u003C\/p\u003E\n\n\u003Cp\u003EBut despite this, most policyholders (65%) don\u2019t get outside quotes for comparison when their auto insurance policies are up for renewal. By region, a higher percentage of policyholders in the Northeast (70%) and West (69%) aren\u2019t shopping around.\u003C\/p\u003E\n\n\u003Cp\u003EAge also appears to play a role in how likely a person is to \u003Cspan\u003E\u003Ca class=\”ShortcodeLink–root ShortcodeLink–black\” title=\”Compare Car Insurance Quotes Online\” href=\”https:\/\/www.valuepenguin.com\/auto-insurance\”\u003Eshop around for better auto insurance rates\u003C\/a\u003E\u003C\/span\u003E. Baby boomers \u2014 ages 57 to 76 \u2014 are most likely not to shop for a lower rate before their policy renewal at 77%. Here\u2019s a closer look:\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\”ShortcodeImageResponsive–root\”\u003E\n \u003Cfigure class=\”ShortcodeImage–root\”\u003E\n \u003Cpicture class=\”ShortcodeImage–picture\”\u003E\n \u003Csource\n media=\”(max-width: 607.5px)\”\n data-srcset=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-gen-m_nvdz8t 1x, https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-gen-m_nvdz8t 2x\”\n\/\u003E\n \u003Cimg alt=\”This is a graph about comparing auto insurance quotes, by generation\” class=\”lazyload\” data-src=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-gen_lijg8j\” src=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_1600\/v1\/auto-insurance-gen_lijg8j\” data-srcset=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-gen_lijg8j 1x, https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-gen_lijg8j 2x\”\u003E\n \u003C\/picture\u003E\n \u003C\/figure\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EEven starker, just 48% of consumers whose auto insurance rates increased during their most recent renewal shopped around for lower insurance premiums. That means the majority didn\u2019t take the time to compare insurance companies \u2014 even after their rates rose.\u003C\/p\u003E\n\n\u003Cp\u003EWhen policyholders shop for additional quotes after a rate increase, they go about the process differently. Here\u2019s how their most recent renewal went:\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\”ShortcodeList–root \”\u003E\n\n \u003Cdiv class=\”ShortcodeList–content ShortcodeList–content-margin\”\u003E\n \u003Cdiv class=\”ShortcodeList–column\”\u003E\n \u003Cul class=\”ListUnordered–root ListUnordered–bullet\”\u003E\n \u003Cli class=\”ListUnordered–list-item\”\u003E\n 28% checked rates with just one other insurance company\n \u003C\/li\u003E\n \u003Cli class=\”ListUnordered–list-item\”\u003E\n 13% got quotes from two insurance providers\n \u003C\/li\u003E\n \u003Cli class=\”ListUnordered–list-item\”\u003E\n 7% made an effort to get three or more quotes from competing insurers\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\”ShortcodeBorder–root ShortcodeBorder–with-padding\”\u003E\u003C\/p\u003E\n\n\u003Cp\u003EInterestingly, most policyholders (80%) stuck with their original insurer even after shopping around for a lower rate. In fact, 89% of consumers whose rate increased remained with the same auto insurance provider.\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\”ShortcodeImageResponsive–root\”\u003E\n \u003Cfigure class=\”ShortcodeImage–root\”\u003E\n \u003Cpicture class=\”ShortcodeImage–picture\”\u003E\n \u003Csource\n media=\”(max-width: 607.5px)\”\n data-srcset=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-insurer-m_kei23o 1x, https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-insurer-m_kei23o 2x\”\n\/\u003E\n \u003Cimg alt=\”This is a graph about switching insurers\” class=\”lazyload\” data-src=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-insurer_xazxfo\” src=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_1600\/v1\/auto-insurance-insurer_xazxfo\” data-srcset=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-insurer_xazxfo 1x, https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-insurance-insurer_xazxfo 2x\”\u003E\n \u003C\/picture\u003E\n \u003C\/figure\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E”,”padding”:”double”
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