Car insurance companies have been relying on electronics associated convenience and greater publicity to stand out in an increasingly competitive field. Insurance companies are investing as much as possible in new digital capabilities that can help to make the insurance shopping process that much easier, in addition to building awareness through multiple national advertising campaigns.
The results were recently published in the J.D. Power 2018 U.S. Insurance Shopping Study, identifying that the volume of insurance shoppers is truly at a historical low. Meaning that insurance companies must rely on savvy marketing techniques and their reputations in order to retain old customers and to lure new ones in.
Serious efforts by car insurance companies to make the process easier and more digitized are likely to stand out in coming years. The reputation of an insurance company was determined to be the top driver in the study. The study found that insurance brand reputation contributed 29% on average of what would influence a shopper to research the offerings available with the insurance company. The study also identified that a clear value proposition as established by the insurance carrier was critical for customers to be aware of in purchasing car insurance. If you have recently been involved in an accident and are shopping around for new vehicle insurance, be aware of California laws that prohibit car insurance companies from discriminating against you for being involved in an accident.