Answer: Over 1/3 of consumers say they don’t shop around for car insurance (despite the gecko imploring us to do so and car insurance companies spending billions to persuade us to switch!)
A recent survey conducted for insuranceQuotes.com determined that the average U.S. driver has not changed insurance companies in 12 years, with about a quarter of them staying with the same carrier for more than 16 years. Thirty percent of drivers say they compare quotes every few years, while a stunning 36 percent never bother to look for the best rates.
As for who is least likely to switch…
The survey found that millennials and senior citizens are the least likely among all demographic groups to shop around for auto insurance. What’s more, 46 percent of motorists in the U.S. confessed to not knowing they can change their auto insurance carriers at any time. “Even if you paid for six months or a year of insurance upfront, the company will reimburse you if you choose to switch,” explains Adams.
Why do your students think people may be so hesitant to shop around?
Hint: A lot.
The joy that a teen driver feels when they get their license is matched by the angst a parent (or teen depending on who is paying) has regarding their new auto insurance premiums. My parents took the easy way out and said no one other than dad and mom could drive the company car (so I became a cyclist).
Back to the question. This study found that adding a teen to a family auto policy can increase rates by (drumroll please)….double: Continue reading
From Jessica Endlich Winkler:
We did it — we undertook the task of designing a budgeting lesson around the costs of maintaining your health. In some ways, it’s a pretty straightforward — will students choose to join a gym or will they find a way to workout for free? But you can’t do a health budget without talking insurance, and the Affordable Care Act is still so new, fluid, and misunderstood that finding good web resources for this lesson was a real challenge. Here are some of my favorites from 6.5 Your Health: Insurance & Other Costs…
- Discussion Prompts — We start every lesson with discussion prompts, and this one poses the quandary of which is more important: buy health insurance or save for retirement?