Average Driver Has Had Same Car Insurance for 12 Years
The average American driver hasn’t shopped around for car insurance since 2003, a new study shows.
With the average driver being under the same policy with the same company for 12 years, 1 in 4 haven’t seen a change in more than 16 years, and 7 percent have stuck with the same company for more than 30 years.
“Americans may think loyalty pays off, but when it comes to insurance, that’s not always the case,” Laura Adams, InsuranceQuotes.com’s senior analyst, said in a press release. “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.”
SEE ALSO: Most Americans Miss Easy Ways to Save on Car Insurance: Survey
Adams says that most people make the mistake of shopping around for rates when they buy a new car, but rates fluctuate all the time and you don’t need to wait for your renewal date to switch companies or policies.
The issue seems to be education. The study says that 46 percent of Americans don’t know that you can switch companies at any time. Also, many drivers find the process of shopping around or switching too time consuming (62 percent), frustrating (44 percent) and complicated (40 percent).
Adams recommends shopping around for car insurance at least once a year to make sure you’re getting the best deal.
[Source: InsuranceQuotes.com]
Jodi has been obsessed with cars since she was little and has been an automotive journalist for the past 12 years. She has a Bachelor of Journalism from Ryerson University in Toronto, is a member of the Automobile Journalists Association of Canada (AJAC), and a jury member for the prestigious North American Car/Truck/Utility Vehicle of the Year (NACTOY). Besides hosting videos, and writing news, reviews and features, Jodi is the Editor-in-Chief of AutoGuide.com and takes care of the site's day-to-day operations.
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How big an issue is customers simply not wanting their credit to be pulled?
I will say this if you dont ask them for the discounts THEY WILL NOT TELL YOU THEY ARE THERE FOR YOU. Many of you have probably never asked and assumed you automatically got them. The answer to that is NO. If you have been with a auto insurance company for 3 years accident and ticket free you should get a discount but again if you dont ask you wont get it. If they dont give it to you, shop around (i found $24/month at Insurance Panda). If you are not working and dont drive you vehicle like normal make sure they know this and when you get your vehicle inspected for you can be exempt for low mileage. Bundling does help but not as much as you thin so the answer to this is shop around and make sure you get a letter for homeowners, auto etc that you are LOCKIN on that deductible. Reason I say this and I wont say which company has raised their homeowners deductible since we have been having so many storms causing extreme damage. If you havent been with them and some less than 5 years your deductible was automatically raised and change, and you most likely werent notified so they dont lose you as a client. SO EVERY ONE CHECK ON THAT.