Typically consumers would have strong views on how they should be treated by an existing provider. Media, experts and advertisements might actually influence people into believing that they would always get the best deals for just being a loyal customer. Sometimes consumers might need to stand back and see what is the real practice and logic behind it. Probably car insurance market is a very good example to make a point here as it is highly competitive. Looking at it objectively, the scenario might be completely different than what we are made to believe.
Essentially there is very little incentive for car insurance companies to offer the best auto insurance quotes to existing customer. The most powerful tool insurers utilize is the statistics and probabilities of an action taking place. In this sense, they would look at the likelihood of an existing policyholder staying with them in the long run. Now, recent surveys indicate that nearly two third of insurance buyers would renew policies without checking for alternative quotes. This is a key indication that existing policyholders are very unlikely to leave under normal circumstances and therefore companies could use resources better by going for new customers.
Actually there might be logic behind why existing customers do not look for alternative quotes. Normally they would have checked for alternative quotes at the time of arranging the policy and determine the best provider. They might be under the impression that nothing will change within a few years and their insurer would remain to be the ideal one. This is a completely wrong assumption in current insurance market as companies regularly go through restructuring and change their client profile. Consider a scenario in which one company stop competing for a specific risk group and a competitor becomes keen to take this market by storm. It is not difficult to see how quickly a quote offered a year ago would lose its competitiveness.
Now we know that consumers are not keen on moving to other providers and they would be looking for a pretty good deal to make them take action. So an aggressive insurer would need to undercut the competition considerably to increase its market share. Even so a financially strong insurer would take on this challenge because it would be a great investment for the future. Knowing that new clients would most likely stay with them a few years, they might even be prepared to take a loss on new business for the first year. They would easily recoup these losses when new customers start renewing for further years. Seriously some of those new recruit policyholders might even stay with the company for 20 years. Even better news for consumers is that only a sizeable insurer could launch such an assault in the market for new business.
If you have been with the existing company for a while now and you have very good driving records, do yourself a favour and get a few alternative quotes. You might be astonished to find substantially cheaper car insurance rates from highly reputable companies. Even though some motorists might not agree with the debate above, curiosity should provide enough motive to take a few minutes and see what else available in the highly competitive automobile insurance market.
Related posts:
- How Insurers View Motorists When Offering Auto Insurance Quotes?
- Could Specialist Insurers Really Offer Cheaper Auto Insurance Quotes?
- Taking Advantage of Competition among Companies by Shopping for Cheaper Vehicle Insurance Rates
- Concept Of Car Insurance Provision And Function Of Insurers
- Good Drivers Are In Perfect Position To Get The Cheapest Auto Insurance Quotes
Source: http://autoinsurancequoteseasy.com/blog/cheap-auto-insurance-quotes/
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