As More Shop Around, Many Insurance Consumers Unaware of Rate Factors

According to a new survey released today by Trusted Choice—the national consumer brand representing the members of the Independent Insurance Agents & Brokers of America (the Big I)—nearly 70% of American are shopping their insurance policies to find a better price but one third of them are unaware that external economic factors are affecting insurance rates.

“Consumers are grappling with increased insurance costs, yet many of them don’t realize the extent that economic pressures and market dynamics are affecting their rates,” said Charles Symington, Big I president & CEO. “Because independent insurance agents work with multiple insurance companies, they are uniquely positioned to work with consumers to help them take a good hard look at their policies, offer various coverage solutions and approach the challenging market with a holistic perspective to help ensure their clients aren’t left vulnerable.”

Among the study’s key findings:

• Higher Deductibles: 46.6% of Americans have considered or already taken a higher deductible to save money on insurance
• Going Uninsured: 22% have considered going uninsured to save money
• Making a Switch: 83% would switch insurance providers for lower cost premiums, while 59.5% would switch for better coverage
• Call My Agent: 56.3% buy insurance through an insurance agent versus 36.3% who buy online through an insurance company’s website

“We acknowledge that the current environment is prompting consumers to opt for higher deductibles, switch coverage solely based on cost, or even go uninsured. However, these are not often the wisest or most effective strategies,” said Kevin Brandt, executive director of Trusted Choice. “It’s crucial for consumers to ask the right questions, engage in close collaboration with their independent insurance agents, and learn about what’s affecting their coverage.”

In the face of the changing and complex insurance landscape, consumers are encouraged to take an active role in safeguarding their financial well-being. Trusted Choice recommends that individuals stay in touch with their agents not only to ask questions to assess their current coverage, but also to inquire about current market dynamics, evolving premium pricing, and seek guidance on optimizing their insurance portfolios. This proactive approach helps consumers make informed decisions aligned with their unique needs and financial goals.

Source: https://www.insurancejournal.com/news/national/2023/12/13/751789.htm