8 Reasons Why You Should Compare Auto Insurance Quotes

Auto insurance is a competitive business these days. Every company advertises that you can save money by buying your policy from them. But how do you know which is really the best deal for you?

We take the hassle out of comparison shopping for auto insurance – just put your ZIP in the box and get FREE quotes now!

By taking a little time to get quotes from different companies, you can find the best auto insurance policy for you and your family.

Still not convinced it’s worth your time? Here are eight reasons why you should compare auto insurance quotes today.

Reason 1: To Save Money on the Basic Policies

Perhaps the biggest reason to compare the quotes from different companies is that you really could save money. Insurance companies each have their own way of calculating premiums. So no two quotes from any two companies will be exactly the same.

Car insurance companies take many factors into consideration when developing their premiums. The driver’s history, as well as the age, gender, and occupation all have an influence. For example, someone who commutes long distances each day will probably pay more than someone who works from home or who uses public transit to commute.

The type of car will also affect how much you’ll pay for insurance. High-performance cars, sports cars, and expensive luxury cars generally cost more to insure than less expensive cars, four door sedans, or SUVs.

Even where you live can play a role in your premium costs. People who live in small towns with low crime rates are likely to play less than people who live in busy urban settings where there are more accidents and higher crime rates, like car thefts.

Many people don’t realize that your credit rating can also play a role. Many insurance companies request your credit scores and use these to help them determine how responsible or high risk you might be as a client.

As an example, here’s how insurance companies in the state of Maryland utilize your credit history.

The important thing to consider is that there is no industry standard as to how these factors are used. One company may put a higher emphasis on your driving record and credit score, while another may look more at your age and how much you drive each year.

This results in a wide range of premium costs. The cost for the same person can vary as much as several hundred dollars from company to company.

Thus it makes sense to get several quotes from different providers. If you stick with the same company year after year without ever checking to see if you can do any better, you may unknowingly be costing yourself big money.

Reason 2: To Get Better Service

Even more widely than their prices vary, the service offered by various companies can be as different as night and day. If you’re at all dissatisfied with the service you are getting, then it’s time to look elsewhere.

Some insurance companies are known for their prompt and courteous service. Others can drag out paying a settlement for weeks or even months. This delay can end up costing you money and a lot of hassle.

Since companies that don’t have a reputation for good customer service aren’t going to volunteer this information when they provide you quotes, it’s a good idea to do some additional research. You don’t want to be stuck with horrible customer service even if it will save you a few dollars.

One good place to start is with your state’s department of insurance website. Each state’s department lists the companies who are licensed to do business within their borders. They also publish items like the size of the business.

More importantly for you, they list the number of complaints that have been filed against them. If a company has a high number of complaints, you’re probably better off scratching them of the list.

You can also look at independent sites like J.D. Powers & Associates. They rate insurance companies on things like speedy claim resolution and high customer satisfaction. You can get a good idea of the best companies to work with from them.

Another good source of information is the people who have to deal with insurance companies all the time: car repair shops. Call around to a few repair shops you trust and ask which companies are the easiest to deal with and pay promptly.

Reason 3: To Get More Discounts

One way to lower your premium costs is to get discounts from your company.

Insurance companies use discounts as incentives for certain behaviors, achievements, and even for certain safety features on their cars, as the Washington Office of the Insurance Commisioner’s website says.

However, like the way they determine the cost of the premiums, there are no rules for discounts. Some companies offer more than others, while others give larger discounts for the same thing.

Thus it’s possible for a company that would charge you a higher premium to actually cost less once you factor in all the discounts. It’s important to go over all the possible discounts with a company when getting a quote.

Before getting quotes, make a list of all the safety features your car or cars have on them. The more safety features on the car the deeper the discounts. Specifically make sure that you get credit for things like air bags, anti-lock brakes, and traction and stability control.

If you have a young driver on the policy, find out what discounts you can get to help lower the costs for him or her. Most companies will give you a discount if your high school or college student makes good grades. You can also find out if they will give you a further discount for a teen driver safety course.

A big discount to take into consideration is a policy combining, or bundling, discount.

If you can compare quotes from companies who will also quote you either homeowners or renters insurance, you could potentially save a lot of money on both policies.

Since these companies want all of your business, often they’ll give you a discount worth several hundred dollars. Read this FreeFromBroke blog for its opinion on insurance bundling.

Reason 4: To Take Advantage of Innovations in Insurance

In the ever changing, competitive environment of auto insurance, companies come up with innovative programs or incentives to get your business. If your company doesn’t offer them, it’s time to get some quotes from some who do.

For example, if you have a very safe driving record, with no accidents in recent years, some companies will promise not to raise your rates the first time you do have an accident. This could save you a lot of money of you ever do have an accident.

Another incentive some companies will offer is to reduce your deductible every six months or year you go without an accident. Again, if you have a good driving record, this could be a good reason to go with a company that offers it.

Once one company offers things like this, many others begin to do so to stay competitive. If your company hasn’t jumped on the bandwagon, you should look to see if you can find one who has.

Reason 5: Your Current Company is Raising Rates

Sometimes, for no apparent reason, your insurance renewal notice comes in with an unpleasant surprise. Even though you’ve had no accidents, no tickets, and no major change in your life, your insurance company is raising your rates.

Usually this occurs when the company is trying to make up for money it has lost elsewhere and is counting on you being oblivious to the change.

But if your rates are going up through no fault of your own, it’s definitely time to start shopping for a new company.

Reason 6: Because You Have Had a Major Life Change

Anytime you’ve had a major life event, it’s a good idea to shop around to get the best deal on your new situation. As Insure U says, these new circumstances can change your rates.

Some examples of major life events are:

• Getting married or divorced
• Having children
• Having a teen who just got a driver’s license
• Having a child go off to college
• Having the last child move out of the house
• Buying a new home
• Getting a new job

Even reaching a certain age may be enough of an event to warrant a review of your insurance.

For example, a young male driver usually pays a high premium until he reaches the age of 25. Once he reaches the 25th birthday, he should immediately start shopping around to see who has the best deal now that he is in a lower risk category.

All of these events change the way insurance companies look at you and the risk you present. So the best provider before might not be the best anymore. The only way to know for sure is to ask around.

Reason 7: Your Driving Record Has Changed

If you have had to have an SR-22 because of high risk driving behavior, and the period of time for that is over, you definitely will want to get quotes for a new standard coverage policy.

Even if you have regular insurance, but you had an accident that five years ago, you should still shop to see if you can find a lower price.

Since most insurance companies look back five years. Once you’ve reached the fifth anniversary, that accident will no longer count against you, making this the perfect time to compare rates with other companies.

Reason 8: You Need a More Flexible Policy

Sometimes the best deal isn’t just about the price. The best deal on auto insurance is one that charges you the least for a policy that fully protects you and fills your needs.

For instance, some insurance policies will only cover you if you are driving the car you are assigned to. So if dad has a car and mom has a car, the company will only want to cover them if they are driving that car. Most families want the flexibility to be able to drive any car on the policy.

If you travel a lot, you’ll also want a policy that extends to rental cars. Some companies include this as part of the policy; others will include it as an inexpensive rider to the policy, while others won’t cover it at all.

No matter what your circumstance is, you’ll want to shop around to find the best price on a policy that meets your family’s particular requirements.

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