{"id":320772,"date":"2025-11-10T17:16:48","date_gmt":"2025-11-10T22:16:48","guid":{"rendered":"https:\/\/www.reviews.com\/?p=116695"},"modified":"2025-11-10T17:16:48","modified_gmt":"2025-11-10T22:16:48","slug":"drivers-dont-shop-around-for-insurance","status":"publish","type":"post","link":"https:\/\/www.reviews.com\/insurance\/car\/drivers-dont-shop-around-for-insurance\/","title":{"rendered":"40% of Drivers Don\u2019t Shop Around for Car Insurance as Often as They Should"},"content":{"rendered":"\n\n\n

Did you know that two identical car insurance policies, for the same driver, can vary by hundreds of dollars<\/a> depending on the insurance company that sells them? Recent comparisons show large, actionable spreads between companies in 2025: independent datasets find the cheapest large carrier can be hundreds to over $1,000 per year less than the most expensive for comparable \u201cgood driver, full coverage\u201d profiles (Bankrate<\/a>; ValuePenguin<\/a>). State regulator tools illustrate even bigger gaps for specific ZIP codes and standardized drivers\u2014some scenarios show the highest quote several times the lowest for the same limits (Washington OIC sample rates<\/a>; Maryland Insurance Administration survey<\/a>).<\/p>\n\n\n\n

This is because every insurer has a unique underwriting formula. (\u201cUnderwriting,\u201d in short, is the equation a company plugs your personal information into to figure out how risky you are as a customer.) Insurers weigh factors like age, location\/ZIP, driving and claims history, vehicle and annual mileage, and\u2014where allowed\u2014credit-based insurance scores and participation in telematics\/usage-based programs differently, so the same profile can return very different prices (Insurance Information Institute<\/a>; NAIC<\/a>; rising UBI adoption noted in J.D. Power<\/a>). Each formula is going to evaluate your risk factors a little differently, and spit out a higher or lower quote<\/a> depending on that analysis.<\/p>\n\n\n\n

The good news is, it\u2019s easy enough to work the system when you\u2019re looking for cheap car insurance<\/a>. Many direct carriers now return a preliminary auto quote \u201cin minutes\u201d (often about 5\u201310 minutes for a single driver\/vehicle), and marketplaces can show multiple options in one session (GEICO<\/a>; Progressive<\/a>; The Zebra<\/a>). Industry studies also emphasize faster, low-friction digital quoting as a key satisfaction driver (J.D. Power Digital Experience<\/a>).<\/p>\n\n\n\n

Most People Don\u2019t Compare Rates as Often as They Should<\/h2>\n\n\n\n

Shopping around is one of the best (and easiest) ways to save money<\/a> on your car insurance. Re-shopping at renewal and requesting quotes from at least three to five providers can meaningfully cut your bill\u2014especially because company-to-company spreads commonly exceed $500\u2013$1,000 per year for comparable coverage (Bankrate<\/a>; ValuePenguin<\/a>).<\/p>\n\n\n\n

Despite the benefits, many drivers still don\u2019t check annually. The 2025 J.D. Power Insurance Shopping Study<\/a> reports that about one-third of customers shopped in the past 12 months and roughly one in eight to one in seven (about 12%\u201314%) switched carriers. Marketwide trackers echo elevated activity but imply that approximately 65%\u201370% did not shop over the last year (LexisNexis Insurance Demand Meter<\/a>). Consumer surveys further show that about 25%\u201340% self\u2011describe as \u201crarely or never\u201d shopping (The Zebra<\/a>).<\/p>\n\n\n\n

\"\"<\/a><\/figure><\/div>\n\n\n\n


Context update (2024\u20132025): Industry sources indicate roughly one\u2011third of drivers shopped and about 12%\u201314% switched in the last 12 months; about 65%\u201370% did not shop annually, and ~25%\u201340% say they rarely\/never shop (J.D. Power<\/a>; LexisNexis<\/a>; TransUnion<\/a>; The Zebra<\/a>).<\/em><\/span><\/p>\n\n\n\n

People who don\u2019t compare car insurance<\/a> rates often end up sticking with the same provider year after year. Even with record shopping, the share who actually switched stayed in the low\u2011teens (about 12%\u201314%)\u2014so most customers remained with their current insurer. Self\u2011reported surveys also show close to half say they shopped in the past year and many more plan to shop soon, primarily due to premium increases (TransUnion<\/a>; J.D. Power 2025<\/a>).<\/p>\n\n\n\n

The Funny Thing Is, Most People Care About Rates a Lot<\/h2>\n\n\n\n

Affordability is the dominant priority today. Motor vehicle insurance inflation has been running in the high teens year over year, keeping price front and center (U.S. Bureau of Labor Statistics<\/a>). The 2025 J.D. Power Shopping Study<\/a> and TransUnion\u2019s 2025 trends<\/a> both find that premium increases are the top reason consumers shop or switch, and that participation in telematics\/usage-based insurance is a growing savings lever for price\u2011sensitive drivers.<\/p>\n\n\n\n

\"\"<\/a><\/figure><\/div>\n\n\n\n


What matters most in 2024\u20132025: Affordability leads, but claims\/service quality, coverage fit, discounts\/UBI, and digital convenience heavily influence who wins the bind and the renewal (Deloitte<\/a>; Bain<\/a>; J.D. Power 2025<\/a>).<\/em><\/span><\/p>\n\n\n\n

Still, many drivers remain with their current company because overall value feels right\u2014bundled pricing and discounts, acceptable premiums, and confidence in service. Research consistently shows claims experience (speed, fairness, communication) is the strongest driver of loyalty and advocacy, which helps explain why some consumers stay even when shopping is up (Bain<\/a>; Deloitte<\/a>).<\/p>\n\n\n\n

Among customers who stay, trusted service and easy digital\u2011plus\u2011agent support often rank alongside price as retention factors, while others delay shopping because they\u2019re uncertain where to start\u2014despite widespread premium pressure (J.D. Power 2025<\/a>; TransUnion 2025<\/a>).<\/p>\n\n\n\n

Here\u2019s How Often You Should Be Checking Rates<\/h2>\n\n\n\n

No matter which camp you sit in (okay with your rates, happy with customer service, daunted by the prospect of finding a new insurer<\/a>), we recommend checking quotes at each renewal. Carrier appetites and rate filings change frequently, so the cheapest company this term may not be next term (LexisNexis Insurance Demand Meter<\/a>).<\/p>\n\n\n\n

If you\u2019re thinking \u201cThere\u2019s no way I\u2019m going to check rates every year,\u201d at least note the times when it\u2019s most important to shop around.<\/p>\n\n\n\n

Some major life events will have a big impact on your car insurance rates. If you\u2019ve recently passed one of these milestones, be sure to compare rates next time your policy is up: factors like location, driver age, violations\/claims, changes in commute or annual mileage, and\u2014where permitted\u2014credit-based insurance score shifts all commonly trigger re\u2011rating. Telematics enrollment can also move your price up or down based on actual driving (III<\/a>; NAIC<\/a>; J.D. Power on UBI<\/a>).<\/p>\n\n\n\n