As premiums rise, a majority of Americans are reviewing insurance policies to find savings
Around one-third of consumers are unaware that macroeconomic factors, like inflation, impact insurance rates.
As personal insurance rates continue to increase for a myriad of reasons, around 70% of U.S. consumers are actively reviewing their insurance policies in an effort to find savings, according to a survey from Trusted Choice, national brand representing the members of the Independent Insurance Agents & Brokers of America (the Big “I”).
Among those shopping around, 45% said it was because of rising premiums. While insureds are feeling the pressure from higher premiums, some policyholders are uncertain as to why insurance costs are increasing. In fact, 32% of consumers said they did not realize external factors such as inflation, supply chain woes and rising reinsurance costs affected insurance rates.
When it comes to savings, 46.6% of Americans said they have or are considering taking on a higher deductible in order to lower their insurance premiums, Trusted Choice reported. The survey also found that 83% of policyholders would switch carriers for lower premiums, while nearly 60% would change insurers for better coverage.
According to Trusted Choice, 22% of Americans have considered going uninsured to save money.
“We acknowledge that the current environment is prompting consumers to opt for higher deductibles, switch coverage solely based on cost, or even go uninsured. However, these are not often the wisest or most effective strategies,” Kevin Brandt, executive director of Trusted Choice, said in a release. “It’s crucial for consumers to ask the right questions, engage in close collaboration with their independent insurance agents, and learn about what’s affecting their coverage.”
Trusted Choice reported that when it comes time to buy insurance, most U.S. consumers prefer to work with an agent. More than 55% of policyholders buy through an insurance agent, while 36% buy insurance directly from a carrier’s website.
Related: