The most common advice most consumers receive before purchasing auto insurance is to compare different policies to find the most comprehensive and cost-effective plan. Technology has provided drivers with several mediums for comparing coverage and insurance marketing agencies consistently provide key information about options. As a result, Congress recently passed a measure that may drive more business to insurers.
The Senate approved a bill that eliminates a law requiring new-auto dealerships to maintain an insurance comparison booklet for consumers. Failing to do so would have resulted in a sizable fine. For years, however, dealerships have argued that the book is obsolete and that consumers typically contact their insurers or consult online comparison websites when they seek information about coverage. The bill will now be sent to President Barack Obama for approval, a move that is highly endorsed by the National Association of Auto Dealers, who have been a vocal lobbying group for the law.
According to NADA data, only 4 percent of consumers have ever asked to see the booklet when purchasing a new vehicle.
"None of my customers has ever asked for this booklet," said NADA Chairman Bill Underriner. "If my customers want accurate insurance information for their vehicles, they should contact their insurance agent, who can provide insurance quote over the phone or via the Internet. The federal government has spent hundreds of thousands of dollars since 1991 to print and mail this booklet to every new-car dealer in America, yet very few consumers ever ask for it."
Providing more information about coverage
Studies reveal that cost is one of the key factors most drivers consider when shopping for an auto policy. Separate data also shows that people who bundle are typically more satisfied than those with individual policies. As consumers continue to focus on money-saving measures during the new year, auto insurers may benefit from promoting the discounts they offer and cost-effective bundling options.
Many consumers are unaware of the various discounts that are offered for drivers in certain professions, those with particular affiliations and even teens with good grades. Seeking out ways to build relationships with customers based on helping them find affordable packages can help further consumer acquisition and retention strategies.