Why Comparing Car Insurance Rates is So Important

If you are like most people, you tend to stay with what you know. This may include your car insurance company; after all, you have been with them for years, and they have given you good service. Why should you consider changing car insurance companies at this point?

If you knew that you could save hundreds of dollars every year for just a few minutes’ work, would you change your mind? It is possible that your “good old insurance company” is charging you far more than they should for your insurance coverage. Only by checking the rates of competitive companies will you know for sure.

Many people do not really believe they can get car insurance for less than they are paying now, but this rarely true. Many car insurance companies “creep” their prices up on their loyal customers, adding a few dollars every year to the base cost of insurance. A new company may be so anxious to get your business that they will offer you the same coverage for much less. It is even possible that your current company will re-examine the price on your coverage if you get lower offers from other companies.

Further, it has never been easier to compare car insurance prices. Our website allows you to instantly compare quotes from several major companies by entering your information once. Instead of visiting each company’s website and entering your information over and over, you can fill out our online form and receive quotes from a variety of automobile insurers. Best of all, these quotes are all “no obligation,” meaning you are not committed to buy from any of these companies. Instead, you can compare prices and coverage quickly and accurately and decide if you want to make the switch to a new insurance company.

There is a more abstract reason for comparing car insurance quotes on a regular basis, as well. Insurance companies base their pricing on a variety of factors, but just like any other company, they compete with other car insurers for business. By giving the companies competition, you help to keep everyone’s insurance prices low. Those companies that want to stay competitive must adjust prices to keep business flowing.

Major insurance companies such as State Farm, Allstate, Progressive, Nationwide, GEICO, and Travelers sometimes have very similar rates, but sometimes the discrepancies in their prices will surprise you. For example, in a recent quote for a 44-year-old female driving a 2005 Ford Taurus with a speeding ticket and an at-fault accident in the past five years, State Farm’s price was $187 for a six-month policy, while Progressive’s was $262.

This $80 difference may have been due to several factors. For example, the presence of an at-fault accident or speeding ticket may weigh more heavily with one company than another. There may also be a difference in the value the company places on the vehicle itself, which can account for a difference.

You should also consider quotes from small companies. While most people assume that quotes from smaller companies will be more expensive, this is not always the case. Small companies have more reason to be competitive than larger companies, and local car insurance companies may offer special discounts unavailable by national automobile insurers.

For example, Amica is not as large as some of the major car insurance companies, but it consistently has the very highest customer satisfaction ratings, including high scores in the categories of pricing and filing claims. USAA is another company that consistently rates at the top of customer service rankings, although this company does not offer its insurance products to all customers.

You must be a service member or a veteran, or the family member of someone in the service, to purchase USAA insurance. These smaller companies often have very good prices and wonderful coverage, so do not forget them as you compile your quote information.

You should be aware as you compare automobile insurance quotes that price is not the only factor to consider. Some companies cut prices by cutting coverage, and you may not be getting exactly the same coverage for each quote you receive.

This means that you have to do a little more work before you purchase a new policy, but it is well worth it if you find a good price for the coverage options you want.

In order to determine what type of coverage you need, visit our pages on each state’s insurance requirements. You will need liability insurance in at least the amount of your state’s minimum requirements, although you may want to get quotes for more than the minimum, especially if you have assets to protect. You will probably also want uninsured motorist coverage, and some states require you to have this insurance.

You may also want collision and comprehensive insurance to cover you for at-fault damage to your vehicle or unexpected incidents like fire and theft. Finally, you may want to add medical payment coverage to pay for expenses for your injuries if you are in an accident.

Comparing car insurance quotes at least once every year or two makes good financial sense. Start today by entering your ZIP code above to get quotes from a wide variety of car insurance companies. With one simple form, you can get started comparing your car insurance rates and save money.