A 2014 Consumer Reports survey on car insurance found 68% of respondents hadn’t shopped around for a new policy in years. More than half of respondents (53%) even admitted to sticking with the same insurer for at least 15 years. These statistics indicate few people want to pour over auto insurance rates in search of a better deal. But, why?
One guess? Shopping for auto insurance is downright boring. If you like your coverage already, what could possibly be gained by calling insurance companies and haggling over policies? The truth is, shopping around for auto insurance is the best way to save money and secure a policy that protects your assets. (By the way, PolicyGenius can spare you a litany of phone calls by helping you compare auto insurance quotes here.)
You know what’s not boring or unrewarding? Money in the bank and insurance that works.
If you’ve thought shopping for auto insurance sounded boring in the past, it’s time to rethink everything you know. Here are four statistics that prove shopping for auto insurance is a smart use of anyone’s time.
1. Auto insurance rates are up almost 10%.
Yes, car insurance rates depend on the driver, their driving habits, where they live, and other factors. But rates are up across the board. AAA reports insurance premiums for low-risk drivers with good driving records were up 9.6% in 2016, bringing the average policy to $1,222 per year.
Sure, shopping for auto insurance is a drag, but so is paying 10% more for the exact policy you had last year.
2. More than $4.9 billion in wealth was lost to motor vehicle theft in 2015.
If you’re worried about the financial implications of an actual car wreck, good call. But don’t forget about the impact of a stolen car.
According to the Insurance Information Institute, almost $5 billion in wealth disappeared due to stolen cars in 2015. Worse, the average loss was $7,001.
In order to protect yourself against losses from vehicle theft, you need a robust auto insurance policy with comprehensive coverage. Generally speaking, comprehensive coverage protects you against auto damage due to theft, bad weather, vandalism, or falling objects.
Unfortunately, the Insurance Information Institute reports only 78% of drivers purchased comprehensive coverage in addition to liability insurance last year. Confused about comprehensive vs. liability coverage? We get it — and have a helpful explainer on how car insurance works to help you sort it out.
If you don’t shop around for a policy that includes this important coverage, you could be out of luck. But trust us, having your car stolen and realizing you don’t have proper insurance coverage will not be boring.
3. More than 12% of motorists go uninsured each year.
A 2014 study from the Insurance Research Council showed 12.6% of motorists – or around one in eight drivers – went uninsured in 2012. While this percentage has been declining over the years, some states have more than their share or uninsured drivers. In Oklahoma, 26% of motorists were uninsured at last count.
The best way to protect yourself is to properly insure yourself, and that means shopping around for an auto policy that includes uninsured/underinsured motorist coverage with limits sufficient to protect you.
4. Bundling policies can save up to 22%.
One last thing that isn’t boring? Saving up to 22% on something you barely wanted to buy in the first place. Fortunately, this feat – saving a bundle – is easy if you’re willing to let a single company fulfill all multiple insurance needs. Get it? Save a bundle by bundling. OK, OK, let me explain.
Let’s say you have a homeowners insurance policy with one company and your car insurance with another. By shopping around for new policies and letting one insurance company handle everything, you can save hundreds of dollars every year.
According to experts interviewed by credit reporting agency Equifax, the savings could be substantial across all your policies – up to that aforementioned 22%. Plus, having all your insurance policies with a single firm is more than smart and savvy; it’s convenient.
Bundling is a bit of an art. Fortunately, we’ve got a break down here of when you should or shouldn’t bundle policies. (You’ll note auto and homeowners insurance is a popular pairing among insurers.)