The best way to save money as a consumer is to always comparison shop. However, we tend to only comparison shop for certain expenses and impulse buys.
Over 80% of Americans will comparison shop for products online before buying online or in a physical store.
However, there are some expenses that Americans never comparison shop for, like car insurance.
Too many Americans treat car insurance like a product that demands loyalty, like a brand of cigarettes or a fast-food restaurant, instead of an expense whose priority should continually reassess.
The typical Americans keep the same car insurance policy for at least 12 years. And 7% of Americans have stayed with the same car insurance company for 30 years or longer.
More than 36% of Americans never shop around for car insurance and are inclined to keep the first policy they buy for as long as possible.
American consumers should reassess and change their auto insurance annually. By just comparison shopping three different auto insurance quotes every year, you could save hundreds or thousands of dollars with a new policy.
But Americans either don’t consider comparison shopping for car insurance or harbor ill-advised loyalty to a car insurance company. Over 46% of Americans had no idea that they could cease and change their car insurance coverage anytime they wanted.
Young people and the elderly are the least likely to comparison shop for auto insurance. And the average American spends over $1,674 annually, or $140 monthly, on car insurance premiums.
Dump unnecessary coverage
Are you aware of the policies you are paying for currently? Do you really need a mechanical breakdown or rental reimbursement coverage?
Did you know that many car insurance companies set rates based on the model of the car you drive? You could probably get a better quote from another company based on the model of the car you drive.
Make a list of the policies you are paying for to assess need versus want. You could be paying for coverage items you don’t need.
Seek discounts
Car insurance companies offer discounts that you may not be aware of. If you have a clean driving history, are married, do not drive often, or have been a long-time loyal customer, you may be eligible for significant discounts.
Proactively ask your car insurance about discounts often.
Comparison shop annually
Car insurance is not a loyalty product. Comparison shop once a year. Understand your policy, assess your needs, and change your car insurance every year to 24 months.
You could be overspending by hundreds or thousands of dollars with oblivious loyalty.
You can use car insurance comparison apps like The Zebra and Insurify to help you comparison shop for the best quote.
