58% Of Drivers Believe They Overpay For Car Insurance, 29% Recently Switched Companies – Forbes Advisor

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Most drivers think they pay too much for car insurance, and many of them are taking action by switching car insurance companies, according to a new Forbes Advisor survey of 2,000 drivers who have auto insurance.

The survey found that 58% say they overpay for car insurance. Many of those drivers compared quotes from other car insurance companiesand a close to a third actually changed insurers.

To what extent do you agree or disagree with the following statement: “I overpay for car insurance”

Drivers Get Quotes and Switch Companies

Among the respondents who believe they overpay for car insurance, more than half (68%) got car insurance quotes over the past year. Of those who got quotes, 42% compared rates within the last six months. Men (84%) were more likely to compare auto insurance quotes than women (58%).

When was the last time you got car insurance quotes to compare rates from other insurers?

And many drivers made the change to another insurance company: 29% said they changed car insurers in 2021 or this year.

Men are more apt to change car insurance companies than women. About a quarter (26%) of female drivers surveyed said they’ve never changed insurers compared to just 15% of men.

And 35% of men surveyed said they’ve switched insurance companies since the beginning of 2021. That’s compared to just 26% of women.

When was the last time you switched car insurance companies?

Why Do Drivers Change Car Insurance Companies?

The biggest reason drivers switch car insurance companies is price. Of those who changed insurers since 2020, 58% said they did so to save money. The second most likely reason was to get different coverage (19%).

Women (62%) were more likely to say they changed insurance companies because of price than men (52%). But men (24%) were more likely than women (15%) to make the switch for different coverage.

Car insurance ads are all over TV and online. Advertising people won’t like one stat from the survey results — a mere 2% of drivers said that an insurance company’s ads inspired them to change insurers.

What was your main reason for switching car insurance companies?

How Much Do Drivers Need to Save on Car Insurance to Switch?

Most drivers said they would change companies to save money, but how much savings is enough to warrant an insurer switch? More than half (62%) said they would need to save at least $ 200 annually switch car insurance companies. Men were more likely than women to say they would need to save more money than women to switch companies.

How much would you have to save yearly in order to consider switching car insurance companies?

Saving money could be as vital as inflation and the cost of living skyrockets. Plus, nearly half (47%) of consumers said their car insurance rates recently increased at renewal time or when they purchased a new policy.

The last time you renewed your auto insurance policy or bought a new policy, did your insurance bill change?

When shopping for car insurance, it’s wise to get quotes from multiple car insurance companies. Request quotes for the same level of coverage from each company so you can compare companies accurately. Most drivers (83%) who shopped for a policy within the past 24 months got quotes from at least two insurers.

How many car insurance quotes did you compare?

Many Drivers Don’t Know That Car Insurance Quotes are Free

One potential barrier to consumers shopping for coverage is the misbelief that getting quotes costs money. About a quarter (27%) of respondents said that getting car insurance quotes costs money either some of the time or all of the time. It doesn’t.

More men than women incorrectly thought you have to pay to get car insurance quotes:

  • Half (50%) of men surveyed said they thought you have to pay at least some of the time to get quotes compared to just 16% of women
  • 61% of women correctly said you typically don’t have to pay to get car insurance quotes. Only 36% of men knew that.

Do you have to pay for car insurance quotes?

How Can You Save on Car Insurance?

With inflation swallowing more of your paycheck, it’s prudent to find ways to get more out of your dollar. One way to save on car insurance is to choose a vehicle with low insurance costs if you’re buying a car. For instance, you’ll pay less for car insurance if you drive a Honda CR-V compared to a Tesla Model S. But most drivers said they weren’t willing to change vehicles to get cheap car insurance. Only 37% said they would change vehicles to save on coverage.

Here are other ways to save on car insurance:

  • Shop around and get quotes from multiple car insurance companies. This will give you a better sense of whether you’re overpaying.
  • Choose a higher car insurance deductible.
  • Maximize car insurance discounts by asking your auto insurance agent to review possible discounts.
  • If you don’t drive much, consider switching to a pay-per-mile insurance policy.
  • If you’re a really good driver, inquire with your insurer about usage-based auto insurance. These programs monitor your specific driving (such as speeding and braking), calculate a driving score, and provide a potentially lower rate based on your score.

Related: Most and Least Expensive Cars to Insure

Survey Methodology

This online survey of 2,000 US drivers who own a car and have car insurance was commissioned by Forbes Advisor and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected May 20-21, 2022. The margin of error is +/- 2.2 points with 95% confidence. This survey was overseen by the OnePoll research team, which is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR). For a complete survey methodology, including geographic and demographic sample sizes, contact pr@forberadvisor.com.

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