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The Benefits of Shopping Around For Car Insurance

September 3, 2012

Shopping around for car insurance quotes isn’t a task most people look forward to, but there are some major benefits to taking the time to shop around – some of which you may not have thought of. While most people shop around because they are looking for a better rate, there are some other reasons to take the time to compare quotes. With easy online quote comparisons and many possible benefits to rate shopping, it’s something everyone should do on a regular basis.

Rates Change Regularly

The most obvious benefit of shopping around for car insurance is that you could get a better rate and save a lot of money. This is the reason most people start looking for car insurance quotes, and it’s obviously a big benefit of shopping around.

What a lot of people don’t realize is that car insurance rates change all the time. Just because you couldn’t find a better rate last year doesn’t mean there’s no reason to try again. Car insurance companies adjust their rates regularly to keep up with the latest statistics and other factors that go into rating. The same companies who couldn’t give you a better deal last year might save you money this year.

And it’s not just the insurance companies that change – your situation might change as well. If a ticket or accident has fallen off your record in the last year, or if you have changed vehicles, moved, or just about any other life change that affects rates, it’s a good idea to compare quotes again.

Discovering Holes in Your Coverage

Shopping around is often the reason people realize there are some gaps in their coverage or that they aren’t covered as well as they thought they were. Often when a new company offers insurance quotes, they may include additional coverage or higher limits, or perhaps a lower deductible. Drivers could wind up getting a better policy in the end. And to sweeten the deal, that new and better policy could even cost less.

Take a good look at the quotes you receive, and see who might be offering you more for your money. Compare the coverage being offered to your current coverage to see if it’s a better deal or a step down.

You May Realize You’re Better Off Where You Are

It may not be the purpose of shopping around, but sometimes taking the time to get quotes can make it clear you really are getting a great deal with your current company. You may have longevity discounts, great coverage for a good price, and a company you trust. Sometimes it takes shopping around to give you the peace of mind that you really are in the right hands already.

Of course, that doesn’t mean it will be so forever; it’s a good idea to check rates regularly even if past quote comparisons have convinced you to stay. Remember that things change all the time!

Every Company Views Your Record Differently

Many people think there’s no point in shopping around for car insurance quotes if they have a ticket or an at-fault accident on their record. One of the biggest benefits of shopping around is to see which companies may rate that ticket less harshly than others.

Each insurance company can determine how to rate for different types of tickets or accidents. That means that even with infractions on your driving record, you could still be paying a better rate somewhere else. In fact, rates can be vastly different for the same driver with the same ticket at two different companies.

It Forces You to Review Your Policy

Taking the time to shop for quotes forces you to also take the time to review your current policy. That means you will notice any errors or omissions such as discounts you should be receiving but aren’t, or incorrect information about your vehicle. Staying on top of these things ensures you always have the right coverage and are paying the correct rate.

This may, in the end, be the most important benefit of shopping around for rates. It’s important to always be aware of what your coverage level is, how it matches your current needs, and of course how much you are paying for it.

When your policy renewal comes in is a good time to make a regular point of shopping for rates. That way you will always be on top of your insurance policy.

  • james

    very helpful