7/2/2014 - Fewer consumers shopping around for auto insurance coverage
While an assortment of providers and a litany of quote comparison websites make it easy for motorists to shop around for auto insurance, consumers aren't doing it quite as frequently as they have in the past, based on newly released data from a well-known credit bureau.
Shopping rates for auto insurance dipped 3% last year, according to a report released by TransUnion. More specifically, the decline took place in the 12 months ending February 2014 when contrasted with the same year-long period previous to it.
"We are finding that despite billions of dollars being spent on advertising each year, the percentage of consumers shopping for auto insurance has been dropping for approximately the last two years," said Mark McElroy, executive vice president for the credit information company's insurance business division.
He added that this suggests the market for auto insurance shopping is shrinking in size, though it's hard to say with any certainty that this is the case, given that there tends to be a fluctuation in activity on a month-to-month basis.
For example, in 2009, the rate of shopping for insurance among TransUnion's credit population was just under 15%. Two years later, the rate jumped to just over 16%, then down again to 15.7% in 2012. Last year it was 15.2%.
There are a variety of worthy reasons for wanting to shop around for coverage, not all of them relating to the price of premiums. Roughly 8 in 10 consumers used the cost of premiums as a major factor that influenced what insurer they went with, according to a separate survey from J.D. Power and Associates. However, while those who experienced a premium increase shopped at a rate of 13%, it wasn't as high as the 28% who did so after being unimpressed by coverage services rendered.
Selective is known for providing top quality auto insurance and services to its customers, not to mention competitive rates. For more information, speak to a local agent.