It's easy to get stuck in a rut with your auto insurance, especially if you have few complaints about your current insurance company. But failing to do a car insurance comparison at least once a year can cost you a lot of money – potentially hundreds of dollars.
Why should you compare auto insurance? Here are some key reasons:
Each time you compare car insurance quotes, you receive a range of price levels for identical coverage. Why do rates vary from one company to another for the same coverage?
When determining your rate, an insurer looks at factors such as your age, driving record and claims history. The insurer also notes the type of car you drive and other factors, such as where you live, whether or not you keep your car in a garage, and the insurer's own claims history.
Each car insurance company has its own formula for determining how such factors affect rates. So, your rate may vary from company to company, even for the exact same type of coverage. This is a key reason why it's so important to compare car insurance rates.
Car insurance companies stay competitive by changing their rates. If one company begins offering "accident forgiveness" or "pay-as-you-drive" insurance, you can bet that its competitors will soon find ways to lower their own rates so they remain attractive to drivers looking for cheap car insurance.
By shopping around, you may find an insurer's rate is lower today than it was the last time you decided to compare car insurance.
As your life circumstances change, so do your auto insurance needs. A single, 22-year-old driver usually requires a different level of coverage than a 40-year-old married parent. This is another reason it's foolish not to compare care insurance rates.
Events that may trigger the need to undertake a new auto insurance quotes comparison include:
Auto insurance comparisons can help you find the best coverage for your changed circumstances at the cheapest rates.
In the past, auto insurance comparison involved making several phone calls or visiting several insurance agents in their offices. Today, it's easy to compare auto insurance rates online, at your convenience. You can visit individual insurance company sites, or you can use an online tool like Insurance.com to see several carriers' quotes side by side.
When you compare insurance quotes online, you get an instant answer about your auto insurance options. You can also purchase your policy online, putting instant insurance coverage at your fingertips.
For example, by plugging your ZIP code into Insurance.com's rate "Quote and Compare" box, you can quickly compare insurance rates from some of the best auto insurance companies.
Each auto insurance company has many different groups of policy holders, and the rates are different for each group. Every insurance company is legally required to set its rates based on its own experience with claims payments and expenses associated with each rating group. That means rates can vary considerably from one car insurance company to the next, even for the exact same driver. That's why it's so important to do your homework when it comes to auto insurance quotes comparison.
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