I'm wondering how the more expensive car insurance companies justify the higher costs to their customers? Do they vary in customer service mostly? Do the cheaper companies pay out less? Or is it just the perceived value by the customer due to branding and customer loyalty.
The reason I ask is my girlfriend works for an independent insurance company. She says my family is paying several hundred dollars more for car insurance than they need to a month. A year ago I told my parents this. They are very loyal to companies, so instead of shopping around they got the driving habit data trackers installed on all our cars. This reduced our bill, but it is still much higher than alternative companies. They perceive that there are quality differences between their insurance and cheaper insurance even though they can match deductibles and coverage.
May 11, 2017 at 10:32AM
