Auto insurance is something that you need to choose very carefully. You should never just accept the first policy that you see. Kiplinger shows that regularly comparing policies can actually save you a significant amount of money. Here are five reasons to compare auto insurance before deciding on a policy.
Policies Can Be Very Different
A major reason to compare auto insurance is that the policies offered by the various companies can be very different. The exact details of what is covered can vary greatly. Additionally, the underlying procedures and guidelines relating to filing claims, coverage and appeals are usually different. You need to compare auto insurance so that you can eliminate companies offering substandard coverage. Comparing policies will also let you find the one that is exactly right for you and your family.
Insurers Weigh Factors Differently
AALL Insurance states, “Many different factors are used to determine your auto insurance rates. These include things like your age, credit score and education. Not all insurance companies today use the same formulas to determine your rates.” Some weigh certain factors more or less heavily than competitors. This means something that increases your rates dramatically with one insurer might have only a minimal impact with another. Comparing car insurance policies is the only way to discover this information.
Some Insurers Offer Larger Discounts
Discounts have become very popular with insurance companies today. Most insurers are offering some type of discount based on your driving record or professional associations. Certain insurers are using these discounts very aggressively to draw in new customers. You want to compare auto insurance to find the best discounts possible. A series of good discounts from an insurer could make a slightly more expensive policy less costly than all others you find. You need to check for discounts because some are unadvertised.
Comparing Quotes Allows You to Negotiate
Car insurance companies want you to compare rates regularly. Unfortunately, Forbes reports that 36 percent of drivers do not even bother looking for lower rates. This gives you an advantage when talking to insurers. If you compare quotes, then you will have enough information to negotiate with insurers to get even lower rates. This allows you to choose a policy that is right for you and then potentially negotiate the lowest possible premiums. This is especially useful if you already have car insurance and just want to lower your current rates.
Learn the Average Rates to Avoid Spending Too Much
Car insurance rates are constantly changing and are different in each part of the country. Something that you can get from comparing auto insurance is knowledge of the average rates in your area. This is invaluable information since it allows you to see which companies are charging far above the average and which companies have exceptionally low premiums. Knowing the average rates in your area makes it possible to avoid paying too much for car insurance.
