How Insurers Stop You Comparing Insurance

May 15, 2018

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Ever get the feeling that you’re paying too much for your car insurance? You’re not alone. Forbes reports that the average American auto insurance customer overpays by $417 each year and that number is going up every year.

You know what’s worse? Car insurance companies know this. That’s why they work hard to keep their existing customers and to discourage them from shopping around. Here’s what you can do about it.

Wake Up To Price Optimization

It’s true in most businesses that retaining existing customers is cheaper than recruiting new ones and car insurance is no exception. Your auto insurance company works hard to keep you. They have nice agents, they send you a branded ice-scraper and a birthday card. Nice.

Sadly, the real reward for your loyalty is usually higher premiums. To keep their long-time customers, car insurers use price optimization. This is the practice of using personal customer data to raise rates just enough that you won’t feel the urge to switch.

Your rates creep up so gradually, that you won’t realize your rates have gone up $200 in 5 years before it’s too late. Your insurance company thinks your too lazy to switch insurers and is punishing you for it. That hurts.

Learn How To Cancel

It’s a bit of a myth that canceling your policy is hard work. Back in the day, you’d need to visit your local agent in their office. Explain why you’re leaving and sign some contracts, which could take most of your day. These days, many companies don’t even require a signature (they just record the call as proof) and those that do require your autograph and do it online.

Canceling a policy can take just a few minutes and then: you’re free! You’re free to shop around and find a cheaper policy somewhere else. We asked the experts here at Compare.com for their top tips to switch insurers the right way.

If you’re stuck for how to tell your insurance company ‘it’s me not you’, read our guide to writing the perfect cancellation letter.

Buck The Trend & Shop Around

Here’s the good news: If you’ve been with your current insurer for a long time, you’ll probably be able to save big by switching. Have you tied the knot? Changed professions? Moved states? Maybe it’s been five years since you got that speeding ticket? You may be eligible for car insurance savings you’re not seeing. Even celebrating a birthday can save you money, especially going from teen driver to fully fledged adult.

Even if you think you’re getting a good rate now, it doesn’t hurt to compare. You may find that switching insurers is an easy way to save a few hundred dollars per year — and we’re pretty sure you can think of some better ways to spend your hard-earned money. Luckily there’s an easy, free, no-commitment way to compare…

Use Compare.com to Compare

If you listen to the commercials, you’d think saving money on car insurance sounds as easy as using a coupon at the grocery store. That’s what insurance companies want you to think.

We ran the numbers. It takes 7 minutes and 47 seconds on average to get an auto insurance quote – and if you get quotes by visiting all the major insurers’ sites, you’re looking at hours of work. Not only that, but you’ll find yourself revealing your personal information over and over again, such as your age, address and social security number. Sure, if you do it that way it’s tough.

Be wary of insurers and other sites that offer to help you compare multiple quotes. Most of them will give you estimates that aren’t entirely accurate, or they’ll collect your personal information to sell to someone else as a lead. Compare.com isn’t like the other sites. We partner directly with insurance companies to offer real rates that you can actually buy.

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