Why Do People Switch Auto Insurance Companies?

The key reasons for switching car insurance companies are to save money, find better customer service, reduce costs after changes in circumstances, take advantage of enticing offers by other carriers and try a new provider after hearing good things about them. Often policyholders get their cues from receiving unexpectedly high renewal quotes or bad service to search for better prices, services, companies and coverage. Once they are convinced the new policy offering is better in one or more ways, there is no reason to stay any longer.

Here are the key reasons people give in customer surveys for changing vehicle insurance providers;

Save money
Generally motorists shop around more during inflationary periods and higher economic uncertainties and auto insurance is one of the products and services they want to save money on. And it doesn’t help if they get unexpectedly higher renewal quotes from their current carriers.

It has become really easy to get a few quotes online through comparison websites and directly at automobile insurers own sites and it is even easier to ask your broker to shop around and see if they can find a better deal. The longer it is since they last compared prices the more likely they can find cheaper quotes.

At any given time, several car insurance companies aggressively try to increase their share of the market and this gives savvy customers an opportunity to save some money. And usually these companies are large and reputable that makes it easier for policyholders to replace one good brand with another. Companies like GEICO, Progressive, Allstate, State Farm and Nationwide are usually in the mix when people get quotes and switch.

Find better customer service
Many surveys reveal that bad service is one of the main reasons why policyholders switch vehicle insurance companies. Having an accident or suffering a loss due to an act of nature is a difficult situation to deal with and nobody wants to deal with the added stress of worrying their claims may be denied.

They want an understanding and helpful insurer to make the process easier. So, not liking the way their carriers handled their claims or finding it hard to get answers when they need it is often enough for people to start looking for another carrier.

Changes in circumstances
Life events like your teenager getting their driver’s licenses, getting married, buying a home, moving to a different city or state can change the dynamics and make it necessary to switch auto insurance to something more suitable for the new situation. Often carriers may not be impressed with the new car or when a teen driver is added to the policy and increase premiums substantially that becomes a cue for the policyholder to start looking elsewhere.

For example, moving to a new state requires cancelling your old policy and buying a new one that complies with the rules of the state you moved in. It may even be that people have to change because their current insurer doesn’t sell policies in the new state.

And things like getting married may mean that people are now looking for a multi-car policy and a company that will offer great deals for bundling. In other words, they are looking for a company that can give a good overall price for combining their cars or is competitive for both home and auto insurance.

Take advantage of enticing offers
Policyholders may enjoy royalty discounts and other perks of staying with the same company for a while but it may not be enough after some time and their premiums may start going up. This usually encourages people to shop around to see if they can do better. Finding out other companies will offer them even better rates for having a long accident and traffic ticket free record may be enough. Besides, many companies offer special discounts to entice new customers to switch.

For example, a home insurance agent makes a pitch for cars as well. Since they already know them, it is easier to be persuaded with a little saving. Actually, the savings can be even more enticing when they decide to bundle with the company already insuring their home.

Often motorists are under the impression that they get good rates because their current providers are offering the best rates and highest discounts for staying loyal. When they realize a totally new carrier can offer them much better coverage and lower price they often feel let down that makes it easier to switch.

Hear good things about a different company
Actually, many automobile insurance companies constantly drill how good they are in their advertisements. After a while, customers feel good about the company to give them a try. If they are already in the market for a new policy for any of the above reasons, this puts the company in a good position.

Also, parents, friends and colleagues can often talk about how good their current providers are and may suggest people to give them a try. There may be further incentives to switch to a company known to your parents or friends. For example, American Family offers discounts when children of their existing customers buy policies from them too.

Experts and even car insurance companies advocate for shopping around at least once a year to see if you can find a better offer. And it is easier to check for alternative quotes these days thanks to the Internet bringing shopping into homes. Once they get the full picture of the current market conditions, they can think about switching or staying put based on real information.