Most experts continue to warn people that the costs of auto insurance policies are continuing to increase. But the exact opposite is what happened. The reason for this is that a lot of people are going online to get insurance quotes and shop for insurance.
In the latter part of the year 2017, the average premiums for auto insurance went down. In fact, in the latter part of last year, senior citizen drivers or those who are over 65 years of age have had their premiums fall by about 4.5% than what they used to be. The more surprising thing about this is that premiums heavily differ from one provider to another. There is about a 40% difference from the most expensive provider to the cheapest one.
The sad thing is that a lot of auto insurance holders are not familiar with this trend since more than 50% of them choose to simply renew their policies with the insurer that they currently have. Only 19% of car owners even try to collect quotations from other providers.
The reason for this is the strategies that these big brands employ to market their services. They try to increase the number of their clients by starting off with very low prices and advertising heavily. Once they get the clients, they start to increase the prices a little bit each year. Their strategy lies in brand loyalty and the fact that some people do not bother to check if they are getting a good rate. Renewal rates are at 50% so it is not surprising that this business model works.
When you do decide to go shopping around for good rates, consider other things than just the price. A low price auto insurance policy is not automatically the one that you should get. They can have low rates but offer very little in the way of services.
For instance, if you are in a situation where you need to get the car repaired, is your insurance provider going to give you a courtesy car? How protected are you if your belongings in the car get stolen? Would you like these to be insured as well? There are also some comprehensive policies that do not give third party coverage in case you wreck somebody else’s car. Think about these things prior to settling for a policy.
It is true that auto insurance prices are a lot cheaper if you obtain them online. Usually they cost between 5% and 10% less than the ones you can get over the phone.
When shopping online, a lot of people try to find the auto insurance quote that is the cheapest. After this, they read what the policy includes to see if it has a sufficient coverage. All you need to do is to type in “auto insurance” and you should be able to get a list of discounted prices online.