Study: Low auto insurance rates keep consumers motivated

A recent study finds that many consumers are continuing to shop for the lowest auto insurance prices, even though the recession has more of them deciding to stay with their current companies for now.

A recent study finds that many consumers are continuing to shop for the lowest auto insurance prices, even though the recession has more of them deciding to stay with their current companies for now.

Recent figures from J.D. Power and Associates indicate that among shoppers who report being in the market for a new auto insurance policy, 66 percent said that they want to be sure they are paying the best price.

Another 25 percent said that they were responding to an increase in their current policy's costs, while 5 percent said they were responding to another company's unsolicited offer.

"Shoppers don't always go with the insurer providing the lowest quote - 10 percent of shoppers say they did not purchase from the brand that offered the lowest price among the quotes they received," said Jeremy Bowler of J.D. Power and Associates, adding that low prices alone are insufficient to retain customers without high levels of service.

The study also found that 28 percent of consumers report that they are in the market for a new auto insurance company, down from 36 percent last year. The recession was said to be a factor, as was the tendency of consumers to stay with companies they were most familiar with.

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Posted: July 16, 2009

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