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Is Inflation Raising Car Insurance Comparison Websites’ Popularity?



We are going through some hard times lately with covid, war and now inflation. Many people have to make serious adjustments to their spending habits and they may have to hone their negotiating skills. Certainly, car insurance comparison websites can help people in that regard as they facilitate finding the best rates available pretty quickly. Let’s have a look at some numbers to determine if they are getting any popular.

What the Numbers Say

According to a recent study by J.D. Power, using auto insurance websites to get quotes and communicate with carriers satisfied customers more than the agents do. Digital channels surpassed the high street providers in pleasing customers for the first time in 2020. This is a significant change in attitudes, although it has been coming for a while.

Of course, covid probably played an important role in this switch since many brokerages were closed and unable to serve customers face to face. Nevertheless, this would suggest that people are now more familiar with the online services and they may not go back to their usual habits of using agents for their insurance needs, unless there is a major reason to do so.

The Main Reasons for Using These Sites

The said reality is that only 1/3 of people look for better prices at each renewal. And a large number of people don’t check if their current providers are any competitive. They just keep renewing year after year. This cycle needs to be broken and high inflation might just do it. Motorists have many other pressing bills to worry about now that they might like to see if they could lower their premiums. Also, when they successfully reduce another bill using utility price checkers or similar services online, they may get the taste of it and try their hands on other expenses.

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More than 50% of people use auto insurance comparison websites just to check prices periodically. That makes it a number one reason. However, it doesn’t translate symmetrically across the age groups. For example, 2/3 of people in the retirement age group do so because of recent premium hikes.

Unfortunately, vehicle insurers aren’t immune to inflation and they have been facing headwinds themselves. There have been a higher number of claims lately and the costs per claim have been rising. Also, automobiles are more expensive now that they have to pay more when they are totaled.

Effects of Inflation in Price Checking

It is disheartening to see each bill that arrives is higher and higher. The threshold of making a stand against those increases has probably passed for many people. Loyalty to your supplier is generally a good thing but it has its limits too and they are being tested. It is time to look after number one and worry about other things later.

Under these circumstances, online comparison sites are likely to serve many consumers well. They have been trying to gain some ground for a while and their popularity is bound to increase as the recent surveys suggest. There are a few good reasons for it.

First of all, people are very familiar with the Internet now and they are comfortable using it for many purposes. They use it for entertainment, work, education and shopping. Secondly, these automobile insurance sites are very fast indeed in delivering a few quotes. They hardly ask any invasive questions and their forms are designed to run step by step that you cannot get lost halfway through.

And most importantly they save money. It is free to use and easy to find one whenever you need. So, there isn’t any real excuse not to take advantage of such a handy service.

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