Despite the current economic climate, American motorists are still expressing great confidence and satisfaction with their current car insurance providers. A study conducted by a well-known research firm suggests that a large majority of car owners in the U.S. prefer to retain their current insurance providers. Analysts say that the survey may be conclusive proof that policyholders find their current insurers adequate.
The survey revealed that 50 percent or half of the respondents have stayed with their current providers for more than five years. Another 21 percent have stayed with their insurers for the past two to five years. Experts say that the figures may point to a robust relationship between auto insurers and the American public. Sources from the insurance industry add that most providers do their best to retain clients especially with growing competition in the market. The increasingly competitive car insurance industry has also resulted in the appearance of more insurance companies, driving down rates.
Analysts say that the fierce competition among insurance companies is keeping insurance rates to its lowest levels in more than a year. The tough economic environment may also be responsible for many Americans’ reluctance to find new providers. Newer companies are stepping up efforts to gain their share of the market, resorting to marketing ploys to entice policyholders to switch insurers.
Forty-nine percent of those surveyed also expressed their willingness to recommend their insurance companies to other motorists. Another 31 percent said that they would “probably” endorse their insurance providers to other drivers given the chance. Experts say that this expression of satisfaction can be taken as an indicator of the insurers’ care for their customers. Analysts have recently noticed that more and more providers have come up with improved customer care programs and policies to encourage clients to stay.
Even with the trying times, Americans are choosing not to risk switching to other insurers. The study also found out that 62 percent of the respondents admitted to shopping for insurance coverage less than once a year. The significantly low frequency is actually a sign that many policyholders are afraid to risk their coverage by approaching other providers. Also, 29 percent of those surveyed said they have not shopped for insurance at all.
Insurance experts, however, are cautioning policyholders against becoming complacent. Even if they have remained loyal customers for years, motorists should be well versed with their insurance policies, as well as the policies of their providers.