Personal Auto Insurance – Various studies show that car insurance rates are steady across the United States of America. They are not rising except few pockets. This may be because of many reasons. Cars are getting safer and safer everyday that they are becoming one of the factors in road safety. Many smart technologies help motorists stay safe avoid accidents while many mobile devices work the opposite way.

Personal Auto Insurance Market in Flux
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At least $40 billion in auto insurance premiums were up for grabs in the past 12 months, a new study finds.

The Insurance Consumer Dynamics Survey from Little Rock, Ark.-based Acxiom Corp. surveyed 2,368 adults with auto insurance to explore current shopping behaviors and the dynamics of carrier-consumer relationships.

The numbers revealed that customers are increasingly ready to shop around. Indeed, one in four respondents said they shopped for auto insurance within the past 12 months, and one-third of those shoppers, representing 9.2% of all auto insurance customers, changed carriers within the past year.

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Not surprisingly price was a prime consideration for those shoppers. This trend was marked among younger consumers.

“The 18–34 age group in particular may be more open than older customers to consider switching carriers for relatively small differences in their premiums,” the report states.

Thus, the challenge for carriers is to keep their young customers engaged and satisfied. Axciom say carriers can employ business intelligence tools to target market segments with unique product and price offers developed specifically for them.

The report says this retention is crucial because the longer a customer is with a carrier, the more substantial the savings needs to be before they will consider a switch. On the other hand, the savings can be bigger as they stay longer with a carrier when they switch.

“Customers with a carrier for less than five years are twice as likely to shop,” the report states. “This suggests that marketers emphasize value-recognition strategies and tactics during a customer’s initial years with them.

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