A new survey finds 72% of auto insurance shoppers are open to changing companies.
Among consumers who switched insurers, 86% cited price as a reason.
Bundling policies helps retain customers, but does not keep them from comparing alternatives.
Consumers facing higher auto insurance costs are increasingly willing to reconsider their insurer, research from LexisNexis Risk Solutions suggests.
The survey of 3,000 U.S. auto insurance consumers found price dominates decisions about both leaving an insurer and staying. That suggests keeping a customer does not necessarily demonstrate strong brand loyalty; it can also reflect a competitive premium.
“Consumers are increasingly treating auto insurance as an ongoing value comparison,” said Jeff Batiste, the company’s senior vice president and general manager for auto and home.
The research also found that many consumers consider shopping easier than expected, potentially lowering a barrier to seeking another insurer.
Bundling doesn’t always keep customers
Even bundling has limits. Customers with bundled policies show higher retention, but still evaluate competing offers.
Together, the findings suggest insurers increasingly must earn customers’ business through perceived value. The 72% willingness-to-switch figure measures shoppers’ openness to leaving, however, rather than the share of all policyholders who actually changed companies.
Should you stay or should you go?
Consumers weighing whether to switch or renew should start by comparing equivalent coverage. A lower premium may come with higher deductibles, lower liability limits, or fewer benefits.
Use the current policy’s declarations page to compare liability protection, collision and comprehensive coverage, uninsured/underinsured motorist coverage, and extras such as rental reimbursement. A higher deductible can reduce premiums, but drivers should consider whether they could comfortably pay that amount after an accident. Lenders and leasing companies may also require certain coverage.
The next step is calculating the total savings. Compare prices over the same coverage period, including installment fees, and ask which discounts apply. Moving an auto policy could eliminate a bundling discount on homeowners or renters insurance, reducing the household’s overall savings. Consumers should also ask whether switching would mean losing benefits such as accident forgiveness or a reduced deductible earned over time.
Service and financial strength deserve attention alongside price. Consumers can check an insurer’s license, complaint history, and financial ratings through their state insurance department and independent rating services. A company’s record for handling claims — and whether customers can reach an agent or representative in their preferred way — can help determine whether a modest premium difference is worth switching.
Ask for a discount
Before leaving, policyholders should ask their current insurer to review available discounts and update information such as annual mileage. Requesting competing quotes using the same drivers, vehicles, and coverage makes the comparison more meaningful.
Consumers should also confirm whether a quoted price remains subject to driving-record or claims-history checks before treating it as the final cost.
Finally, timing matters. Ask about cancellation charges and any refund of unused premiums, and confirm that the replacement policy is in effect before ending existing coverage. A gap could leave a driver responsible for accident costs and lead to higher insurance rates later. The decision should rest on meaningful savings for suitable coverage, weighed against service, lost benefits, and switching costs.