There's some good news and bad news to report about insurance customers purchasing automotive coverage: On the negative side, fewer people are buying. However, of those who are, they appear to be quite happy with their providers.
According to a recent poll, which was conducted by digital measurement and analytics firm comScore, the percentage of consumers that shopped for auto insurance fell in 2013, with 48 percent indicating that this is something they did in the past 12 months. That's the first time the measure has dropped below the 50 percent threshold in more than five years.
Meanwhile, among those who decided to switch, there was no material change between 2012 and 2013, which suggests policyholders were satisfied with their current plans.
Susan Engelson, senior director at comScore, indicated that one of the most important factors of turning auto insurance leads into sales is getting an understanding of what motivates consumers to shop, keep or switch plans.
"These insights can help insurers develop strategies for effectively influencing consumers before, during and after the shopping process, ultimately giving insurers a competitive advantage," said Engelson.
For virtually every auto insurance shopper, what they pay in premiums has the biggest influence on whether they decide to buy a plan, retain it for the long term or switch it for something more affordable. Agents should be sure to work with their customers so that they're aware of the fact that what they wind up paying can be reduced by implementing certain savings strategies. For example, if motorists don't drive very often, they may want to consider buying a plan with a higher deductible. This can help lower the cost of annual premiums significantly. Alternatively, they may want to consider a user-based insurance plan, which tracks how motorists drive.
Posted In: Insurance News