Customers are largely satisfied with their auto insurance providers, a new survey from Chicago-based marketing competitive intelligence provider Mintel Comperemedia finds.
The study reveals that 50% of respondents have been with their current auto insurance provider for more than five years, while another 21% have a two- to five-year history.
Moreover, when asked whether they'd recommend their current auto insurer to friends and family, 49% said they definitely would, and 31% said they probably would.
"Auto insurers are clearly doing something right, because the overwhelming majority of customers feel satisfied with their current provider," says Daniel Hayes, VP of insurance services at Mintel Comperemedia. "Most people aren't shopping around for auto insurance frequently, and even when they do, it takes significant change in cost or customer service to make them switch."
Indeed, 62% of those queried said they comparison shop for auto insurance less than once a year, with 29% saying they never shop around. Getting a bill, poor customer service and agent inaccessibility were the primary reasons customers chose to shop around.
"People comparison shop for auto insurance primarily to save money or find better customer service," adds Hayes. "Because so many people are satisfied, however, companies need to find ways to make people question their current coverage. TV and direct marketing remain important vehicles for planting that idea in a consumer's mind."
Consumers of all ages consider a number of attributes when selecting an auto insurer. Most important is finding the coverage they need. Baby boomers (ages 45 to 63) find low premiums to be next on the importance scale, while the swing generation/WWII (ages 64 and older) named good reputation as being the next most important attribute when selecting an auto insurer. Also receiving high importance marks from all ages were product components/coverage respondents need and the ability to speak to an agent when needed.
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