Is Shopping around for Auto Insurance Worth the Time?

Staying with the same company for many years is comfortable. Somehow people may believe that they will be treated better if they are loyal. However there is no supporting evidence for it. You may choose to ignore but other motorists save hundreds of dollars by shopping around for car insurance. The premium gap between the least and most expensive insurer can be as much as couple of thousand dollars.

There are many studies conducted in this field that show the huge differences in automobile insurance prices. Even for a basic coverage the premium gap can easily be a thousand dollar in a large city location. Some companies are in the market for the sake of being present in some areas. They are happy to do business if you throw ton of money at them. Otherwise, they may think that you live in a high risk area.

However, it may be the stumping grounds for another insurer who is happy to cover you for half the price. It is not normal for every company to be competitive everywhere and all the time. They may have given you a great rate in New York but they may not be that competitive in Los Angeles. This point highlights the need to search for the best car insurance rates at each renewal.

A recent study found out that the premium difference for basic liability vehicle insurance coverage was as much as $2,500. Even more surprising was the fact that both the cheaper and extortionate rates came from two of the 10 leading car insurers in terms of policies sold across the United States of America.

Wouldn’t it be painful that the only company you got an auto insurance quote from was the expensive one? Even more painful would be to stay with the same company for years and lose out thousands of dollars in the process. There are many policyholders who have ever worked with one company until now. They could have saved amounts so big that in a few years they can buy a brand new car with it.

Another study shows that people can save around twenty percent by shopping for the lowest auto insurance quotes. There are many examples of people saving much higher percentages. You can save a lot more or find out that you have a pretty good deal from your current insurer. Either way, it is better to know than carrying on without having any idea what could your premium be with an alternative insurer.

An average driver can do a lot better than a good driver in terms of premium payments by shopping around for auto insurance carefully. Think about it for a minute. You pay extra attention not to get involved in any accident for years so that you could get about twenty percent discounts from your current insurer. Another guy spends a few minutes in front of the computer and already get twenty percent better rates than you.

Anyway, the best is to have a go and see how much you could save on car insurance today. Then you can make up your mind if an hour you spend searching around and getting quotes was worth it. Besides, couple of hundred dollars may be great savings for many people but may not impress you.

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