Rise in Car Insurance, Drop in Consumer Trust

According to a recent report, just 15 percent of auto insurance customers say they have “high levels of trust” in their insurance agency. The survey also found that most people do not trust their auto insurance company. About 51 percent of respondents said they have “low levels of trust” in their insurance agency.  

Reasons for Lack of Trust

Increasing Policy Cost

The main reason for the lack of trust in auto insurance companies is the cost of policies. Over the past two years, insurance costs have skyrocketed. In 2022, the average cost of a full-coverage policy was $1,633. Experts expect that the number will jump to an average of $2,160 this year. The quick increase in pricing has consumers fuming.

Cost vs. Trust

The study found that people who lived in areas where auto insurance rates have increased the fastest over the past two years had the lowest levels of trust for the companies. Florida, where premiums rose the fastest, also had the lowest trust rates among consumers. 

How to Save on Auto Insurance Rates

While auto insurance rates are on the rise, there are some ways to save on your policy. Here are some tips:

• Ask for Discounts. Insurers will often give you discounts for a variety of things, from bundling policies to having a good driving record. All you have to do is ask.
• Consider Smaller Insurers. The larger insurance companies are great, but you should also consider smaller companies. Many local insurance companies offer lower pricing than big-name brands.
• Raise Your Credit Score. One of the factors used to calculate your insurance premium pricing is your credit score. Make sure your score is as high as possible before shopping for a new policy.

Do One Thing: Shop around for a new auto insurance policy if your current policy has become too expensive.