The poor performance of the U.S. economy has led to an unexpected decline in the demand for car insurance. This has resulted in insurers scrambling for clients to remain afloat, experts say. While the car insurance industry is struggling, car owners and policyholders can actually benefit from the situation.
Because insurance providers are desperate to find new customers or even retain their old ones, insurance premiums are going down. Competition among insurers is becoming increasingly tougher, with companies doing everything to entice new clients. Analysts say that this trend is expected to continue for several months until the economy shows concrete signs of recovery.
In fact, the national average for insurance rates is the lowest in more than a year. The relatively lower premiums have also resulted in policyholders expressing satisfaction with their insurers, according to a recent study conducted by J.D. Power and Associates. Of the factors included in the annual survey, the price aspect drew the highest increase – 32 points. Specialists say that this is proof of the increased focus of insurance companies of rates and prices.
The return of millions of American college students to school is also driving the price wars, according to experts. Because of the anticipated increase in demand for new car insurance policies, providers are expected to offer young motorists packages and price reductions. Even if teen drivers are the most expensive to insure because of the higher risks involved, insurers are taking the plunge an offering them lower rates just to get new clients.
Auto insurance providers are also expected to resort to marketing gimmicks to attract more customers. Special offers and packages have become the norm in the car insurance industry, analysts say. The tough competition is also forcing many insurers to offer rock-bottom rates for short periods of time. While enticing, experts caution policyholders against rash purchases. Instead, they recommend understanding everything there is to know about the offers and comparing them with other offers provided by other insurance firms.
Even with lower premiums and seemingly fantastic offers, specialists still strongly recommend comparing auto insurance quotes online to get the best deals. With insurance agents and brokers out of the way, car owners can find the best rates by simply comparing what providers have to offer. Most insurance companies are shifting their attention to the online market with more car owners admitting to researching their options on the internet.
Experts also recommend regularly checking quotes since these are often updated on a monthly and even a daily basis.