You would expect that most motorists would get multiple car insurance quotes and compare their options, considering how competitive the market is. It appears that something this obvious is getting ignored by more than half of policyholders as they keep renewing for years without even checking with one other company, according to several surveys and studies.
This may be because of a few reasons. First of all, they set up easy auto-renewals that guarantee coverage for another year or six months. Secondly, people still think that automobile insurance comparison shopping is time consuming. Perhaps policyholders remember the past times in which it took a while to get estimates.
Recently, more and more people start shopping around due to easy solutions offered online and increasing vehicle insurance premiums. Especially if you haven’t looked for different options for some time, it may be extra beneficial not to miss the chance of checking out other deals when the current coverage is nearing the end of its term.
It takes as little as five minutes to fill out a car insurance proposal form and get an instant result online today. When policyholders keep renewing policies they may not be aware of this point. Searching for a lower premium can be completed when you have a few minutes to spare. You just need to provide basic details about yourself, driving record and cars to receive it.
Should there be a reasonable premium offer this could be followed up by a check on the auto insurer providing it. A call to them or a broker is another alternative available. However, many people go ahead and buy a policy there and then. These days, most things relating to vehicle coverage can be handled online including submitting claims.
Is It Worth the Time?
When someone is earning quite good money hourly it may be understandable not to waste time in order to get several hundred dollars of savings. However, this amount is large enough for most motorists. Such savings will probably be repeated automatically next year as well once a more agreeably priced carrier is found. This should offer extra incentives to motorists who cannot make their minds up.
Why Get Quotes?
People get automobile insurance renewal quotes at least two weeks before their policy is due to expire. This details the coverage and price, which is hard to judge on its own if it is any competitive in the current market or very expensive indeed. That is why people need alternative car insurance quotes to compare so that they know if they are getting a good deal or it is time to switch.
Checking with one other insurance company isn’t enough either because it leaves to luck. If that quote comes higher than what you already have you may feel justified to stay with the current provider. On the other hand, probing the market by checking prices with several other providers is bound to offer a clear picture as to lately available policy coverage options, competitive companies and prices.
Motorists should at least get five auto insurance quotations when they are spending a lot of money. Anything less would not be indicative enough either way. The likelihood of finding two expensive companies and giving up as a result is not ignorable. You would be pretty unlucky to find five of the most expensive insurers in your zip code. That is why people should aim to get at least five estimates although some experts suggest to get as much as ten.
This also serves as an extra assurance that a cheap price is not too cheap. When there are other carriers coming close to an attractive premium offer people can see that it is not too good to be true. Rather, the current insurer is valuing their services a bit dearly. It makes sense to question a price way below the rest of the pack. Number of people would possibly hesitate to buy from such providers thinking that there might be problems when a claim is made.
Once You Have the Quotes
Checking prices does not necessarily lead to switching even if you find cheaper vehicle insurance companies. There are several options available to you following the receipt of offers. You could try to bring the renewal premium down by talking to the current provider. They can have a look at it again to see if you qualify for any other discount so that the rates can be brought down a bit.
Secondly, you could ask one of the alternatives to improve a bit, knowing there is a better one on the table. It wouldn’t be a surprise if they manage to find another reason to give cheaper auto insurance rates. And you could stay where you are regardless of better deals. The beauty of it is that you are in full control. You can do whatever you want with the information after you have the full picture.