Auto Insurance Purchases Being Aided By Online Quotes
Millions of people spend more than ten hours per day on the Internet whether for work or for leisure. Now a new finding from JD Power and Associates has found that most drivers who are looking for their first auto insurance policies opt to get online insurance quotes before making their final policy purchase.
One issue that may arise from this new development is that drivers may be more confused than ever when they get an auto insurance quote online. It can be hard for drivers to be able to comprehend the auto insurance terms that they are reading about when they are finally given their online insurance quote.
Customer service agents at insurance companies are a great resource for first time insurance buyers and relying on the Internet alone could lead many drivers to make costly mistakes. If a driver if getting their auto insurance for the first time then they are probably a younger driver. Younger drivers have less driving experience and they need to have more auto insurance coverage than older people because they become involved in more automobile accidents.
The U.S. Insurance Shopping Study from 2011 found that more than 50% of drivers get an online auto insurance quote and then use an insurance agent or call center to finalize their insurance policy purchase. Most of the time an auto insurance company will have one of their agents immediately contact a driver by phone or email to issue them a quote and follow up to see if they have any questions on premiums or the insurance policy’s benefits.
Since more drivers are using the Internet to get insurance quotes, auto insurers will need to change the way that they market their insurance policies to drivers. Before the Internet was created, most drivers just called and got a few insurance quotes before signing up for an insurance policy. Now with the click of a mouse, drivers can compare auto insurance quotes very easily. This means that in order for auto insurance companies to stay competitive that they need to craft their marketing strategies to have the lowest premium rates possible so that they can effectively compete and keep or increase their client databases.
Drivers are shopping around for new auto insurance policies each time that their policies come up for renewal. The study also found that approximately 33% of drivers stated that they do shop for a new insurance policy every six to twelve months in order to save money on their auto insurance premiums. Auto insurers should beware because the study found that more than 40% of those drivers that looked for better insurance premiums ended up changing their insurance providers. This means that brand loyalty has begun to fade away for consumers because they are more concerned with their bottom line.
Unemployment has become a huge issue for auto insurers to contend with. The unemployment rate is 9.1% and with many people stuck at home looking for jobs the penny pinching mentality has become a necessity. Auto insurance companies spent about five billion dollars just to market their products to consumers. It is important for these insurers to focus on retaining their clients by offering them the highest customer service possible.
One new way for auto insurers to connect with young drivers is social networking. Many insurance agents connect with drivers via Facebook and Twitter to build a reputation so that prospective clients will switch their auto insurance to the company that they represent. Technology has changed the world and auto insurers need to change with it in order to survive.
Source: Property Casualty 360