“Although many care insurance companies are offering relief to help their costumers overcome the effects of the COVID-19 pandemic, many drivers are not pleased and are considering to switch their insurers”, said Russell Rabichev, Marketing Director of Internet Marketing Company.
LOS ANGELES (PRWEB) May 10, 2020
Compare-autoinsurance.org has launched a new blog post that presents the reasons why drivers are switching their insurers even if the companies are offering relief.
For more info and free car insurance quotes, visit https://compare-autoinsurance.org/how-the-coronavirus-related-car-insurance-discounts-and-refunds-are-making-people-to-switch-providers/
With most states under stay-at-home orders from governors, traffic is down almost everywhere, and that means lower crash rates and fewer insurance claims. For these reasons, car insurance companies are cutting their insurance premiums, sending checks, or they are offering credits on monthly bills.
A recent study done by market research company J.D. Power shows that insurance providers need to figure out fast how to deal with the current situation caused by the pandemic. Although many insurers have offered refunds and discounts to their customers, that hasn’t made many people love their providers.
"Auto insurance satisfaction levels continue to decline," according to J.D. Power. Since March 24, J.D. Power has conducted weekly pulse surveys and collected more than 4,000 responses in total. Their study has highlighted the following trends in the car insurance industry:
- Premiums reliefs actions weren’t big enough to make a difference. Only 37% of consumers are aware of their carrier’s announced premium relief as of April 14. 57% of the aware population believes that the actions taken by the insurers are enough to relieve financial pressure, while 46% of the aware believe that the action taken by insurers will arrive in time to make a difference. Among unaware consumers of their carrier’s announcements, a majority indicate that any relief is not likely to arrive in time to make a difference. Also, consumers who are aware will still seek further premium relief, even if they believe recent actions would ease the financial pressure.
- A surge in shopping/switching is likely to happen in the near-term. Peoples' satisfaction with and perceptions of auto insurance companies are dropping, which is what drives them to find better deals elsewhere. Customers that expect to be contacted, but aren’t, are almost twice as likely to switch carriers. In the absence of carrier-provided options, consumers appear increasingly likely to resort to shopping, switching, or cancellation. Given the ease of online shopping, those carriers that are less able to help their customers find solutions may encounter retention challenges on certain customer profiles. Only 42% of the asked consumers said they won’t be taking any actions to manage their insurance costs.
- Telematic devices are likely to become more important as consumers see new benefits. 40% of auto insurance customers say they are more willing to consider usage-based insurance. This figure is nearly three times higher than it was before the pandemic started. The majority of drivers expect their average number of miles driven to remain lower post-COVID-19, while 38% are expecting driving behaviors to return to normal. Those consumers that see reduced vehicle utilization to continue into the medium-term, are especially interested in UBI programs.
- Non-standard insurance markets are likely to be impacted. Non-standard companies could be especially impacted over the next several weeks as their customers become aware. Non-standard markets may have to deal with switchers that see cancellation as an alternative to not finding an acceptable rate. More than 50% of consumers who are seeking payment relief have lower credit score quality.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/
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