An under informed customer may choose the cheapest available package, which may not cover them correctly if a tragedy happens. This is where independent agents are invaluable. (Credit: iStock/ALM archives)
When people are concerned about the economy, they focus on saving money more than ever. That's especially apparent with insurance, where consumer preferences in challenging times are often to buy the cheapest coverage they can find or even go without insurance if they can.
For example, a recent LexisNexis report shows shoppers in the U.S. aren't ready to accept higher auto insurance rates, so many are choosing to shop around for a better value.
Related: How consumer economics impact insurance in 2024
Compounding the issue is that insurance carriers face several headwinds that especially impact our industry (extreme weather, supply chain issues, more expensive repairs, rising labor costs and more), causing them to raise premium prices. Insurance is forever a supply and demand game; the demand is always there but the cost of supply varies often.
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