Is Shopping 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 it but other motorists save hundreds of dollars by shopping around for car insurance. The gap between the least and most expensive quote can be as much as a couple of thousand dollars.

There are many studies conducted in this field that show huge fluctuations in automobile insurance prices. Even for a basic coverage the premium gap can easily be a thousand dollars 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 a ton of money at them. Otherwise, they may think that you live in a high-risk area.

Failing to get the message that they are pricing you out, coupled with not checking with the alternative car insurers, can cost you dearly and you have only yourself to blame. You have got to look after your own interests and compare the market at least once a year.

However, it may be the stomping ground for another company that is happy to cover you for half the price. It is not normal for them 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 auto insurance rates at each renewal.

A recent study found out that the price difference for basic Liability coverage was as much as $2,500. Even more surprising was the fact that both the cheaper (State Farm) and extortionate (GEICO) quotes came from the top two of the leading car insurers in terms of policies sold across the United States of America. And the real kicker is that the particulars used were for a low-income driver.

Funny thing is that GEICO is known as one of the most competitive but clearly not for this person and not in this region. It would be a real shame if the person in question has seen the expensive quote and thought that he or she couldn’t afford it and would take chances with driving uninsured.

It would be so painful to find out later that the only company you applied to and got the coverage was the expensive one. It would be even more painful to learn that you stayed with them for years and lost thousands of dollars in the process. They could have saved so big amounts that they could have bought a brand-new car.

There are many policyholders who only know one company until the end of their lives. It may look like an incredible devotion but it is probably an extreme laziness because there is no way a vehicle insurer can remain competitive for a (say) fifty-year stretch, when the policyholder goes through all the stages of a lifetime.

Another study shows that drivers can save around twenty percent by shopping for the lowest vehicle insurance rates. There are many examples of people achieving much higher percentages. You can economize a lot more or find out that you have a pretty good deal already. Either way, it is better to know than carrying on without having any idea what your premium could be with others.

An average driver can manage to find cheaper automobile insurance prices than an excellent one of the same age, gender and zip code by shopping around carefully. There are so many sources and it is so fast online that passing the opportunity to save money renewal after renewal is ridiculous. Perhaps it isn’t our place to say it but it is so obvious.

Think about it for a minute. You pay extra attention not to get involved in any accident for years so that you could qualify for a twenty percent discount. Another guy spends a few minutes in front of a laptop and already gets twenty percent better rates than you. These kinds of things happen every day and people who stay put because they don’t check stand to lose out.

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, paying a couple of hundred dollars less may be great for many people but may not impress you.