A recent study examined the trends in auto insurance consumers actively looking for auto insurance policies. The study, performed by J.D. Power and Associates, found that on on average, major auto insurance companies only capture about two percent of all auto insurance customers. Surprisingly, 36 percent of auto insurance shoppers ignored the top insurance brands when they made their purchasing decision.
A recent article in the Insurance Journal quoted the Senior Director of Insurance Practice at J.D. Power and Associates, Jeremy Bowler, saying that, ” Unwillingness to consider a brand is generally caused by a previous experience with a company, a lack of bundled or desired options, or feedback from friends and family. In particular, the impact of reccomendations and referals is critical to whether or not a prospective customer will even consider an insurance company”.
The study also found that traditional insurance sales methods (phone, in person) might be closing more policies than online attempts. With traditional close rates being about 52%, stricly online methods only conjure in sales from approximately 20% of their leads.
Bowler went on to say, however, that, “One interesting tactic being implemented in the industry is for one insurer to offer quotes from multiple competitors. One in three shoppers who receive a competitors quote from the company they are currently investigating don’t bother to call or visit that competing company directly to obtain a real quote from them.”
Editorial Note: At homeInsurance.com we offer competitive auto insurance quotes using the same “multiple company shopping” process that we implement for our home insurance sales. We agree with Mr. Bowler’s statement because we see the benefits of shopping multiple quotes for our customers everyday. Not only do our customer’s save time, but we can also usually save our customers up to 50% on their premiums. Hopefully, as consumers become more aware of comparison shopping, more homeowners will begin to benefit from this free service. Remember, even if you do not decide to use a comparison site like HomeInsurance.com, always do your own comparisons- shop around to get the best rates.