Three Facts Auto Insurance Companies Won’t Tell You
What careers do you think have the highest premium costs? Business executives and lawyers end up paying more because they are often distracted by work-related stress, and are more likely to talk on the phone while driving, making them a larger risk for insurance companies.
Most of us don’t find out information like this when we compare auto insurance quotes online.
Three Facts Auto Insurance Companies are Unlikely to Tell You
1. How People Shop for Auto Insurance Rates
Insurance Journal has just released a fascinating article detailing exactly how, and when, consumers shop for their auto insurance. By accessing industry-wide data, they found that people who are moving, for example, are 200% more likely to shop for auto insurance before they move. Young people are the most likely to shop around, peaking at age 25. This is reflected in current insurance marketing, which frequently features more youthful actors in a reflection of which consumers companies are hoping to sway.
2. You Need to Look at Multiple Quotes!
Interestingly, the same study also found that 45% of people requesting car insurance prices only requested one quote. How can you compare insurance quotes if you’re only requesting one estimate? Insurance companies might allow you to request free online insurance quotes, but the amount of information people are required to enter often discourages consumers from doing it more than once. It’s illogical not to shop around, though, when the tools are free and could potentially save you hundreds of dollars every year.
3. What Happens if You Total Your Car
Industry valuation standards such as Kelley Blue Book and Edmunds are not always used by insurance companies in deciding how much to give you after your car has been totaled. Often, they will instead decide value based on claims servicing companies. You don’t need to accept their offer — try finding better comparable prices online, and see if your insurance company is willing to agree.
Do you know any facts about auto insurance rates that the insurance companies like to keep a secret? Let us know in the comments.