When I worked as a manager in the retail environment I got so used to the customer shopping around and finding the best price on a product. It wasn't rare, in fact it was daily, when someone would point out the difference in the price of a product I sold. Even when the difference was less than 1%! The consumer did not want to pay a penny more than they needed to get the product they wanted.
Now, in insurance, it's completely different. The consumer, or at least 90% of them, cares nothing about the competitive price. This is made clear by the fact that they refuse to shop around for the best rate. It can be argued that the lowest premium does not equal the best value, and I agree. However, I am literally stunned when a propective client hesitates to switch insurance carriers to potentially save 10-20% on their annual premium when everything else is equal. Coming from a retail background, this is mind-boggling (and quite frustrating).
I have come to learn of the intangible loyalty most insureds have with their carrier or their agent. Most people don't want to switch their insurance and save money because that means they have to "break-up" with their current agent. This is unpleasant to them and they avoid it. Who wants to call someone to tell them they are taking their business elsewhere? There are few other places in the consumer world where you have to do this. It is to the point that the insured may not even know the agent who they are giving their business to. They don't know what he or she looks like or where their office is. I find this unsettling. I believe everyone should have a strong and trusting relationship with their insurance professional.
I urge everyone to do more research and be more active in your insurance. Shop around. Ask questions. Figure out who you want to give your business to and why. Get the best value for your dollar and make sure it's with someone you trust to take care of you when you need it most.
