If there is one good thing that the economic recession has brought to the U.S., its tougher competition. Because Americans are choosing to save up rather than spend, companies are struggling to make profit and keep themselves afloat. This situation is also true for car insurance providers.
Hundreds of new car insurance companies have set up shop in recent years, hoping to get a piece of the lucrative industry fortune. The sudden influx of new players has generated competitive price wars in the providers’ efforts to attract new clients. Even before the economic slump set in, car owners were already seeing considerable price cuts, with some insurers including free auto insurance quotes to attract customers.
When several industries finally suffered major blows, most insurance companies licked their wounds and set out to reclaim their market share. This led to another price war, resulting in another round of cheaper car insurance for almost everybody.
The continuous competition would not have escalated to these levels if it were not for the advent of new technology. Innovations like the internet allowed providers to tap into and be in direct contact with policyholders. Without the need for insurance agencies and brokers, providers were then able to offer low-cost or even free auto insurance quotes to potential clients.
Most major auto insurance firms also have online portals to cater to their policyholders’ needs. Nowadays, car owners can easily request quotes and compare insurance policies by browsing the websites of different insurers. Subsequent years brought about another change in the way American car owners searched for the perfect car insurance online. Affiliate companies soon established websites to accommodate comparisons of different insurance policies and coverage.
By displaying the different options available to motorists, these sites gave insurance companies another portal to present their products and services. Most sites and companies even offer free auto insurance quotes to entice car owners to sign on with them. This has led to an increase in the number of Americans using the internet for purchasing car insurance. In fact, an estimated one-third of all car owners made use of the internet to buy their insurance policies.
However, policyholders have to monitor insurance rates regularly. The price wars may have brought free auto insurance quotes for car owners, but the insurance market is dynamic and rates often change at a rapid pace to reflect the needs and demand for insurance. Thankfully, policyholders can now access free quotes through different web services.