Using introductory offers to woo new customers and then gradually escalate rates once they’re good and settled is not a bad business model. A study from the Texas Office of Public Insurance Counsel reveals why. The study found that almost 60% of drivers rarely or never shop auto insurance policies. The study also found that a driver who switched insurers after eight years would save an average of 19%. The study only examined auto insurance, but the authors of the study said the pattern could be used with other lines of insurance, too.
The United State is not near the top of this list.
Organizations in the mix include Sun Life U.S., LifeQuotes.com, Allsup, Cigna and MetLife.
Before you send us an angry email, please read all the way to the end of the author's latest column.
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