Can I Save Money by Car Insurance Comparison Shopping?

Comparison shopping is the most beneficial when prices vary greatly between providers, it is for expensive products and recurring spending like utilities. And it helps if it is easy to get the most return for your time. Auto insurance fulfils all these characteristics so you are likely to save enough money if you shop around to find the cheapest insurer. Even if you don’t save money this time, it is still a satisfying process that makes sure you are not missing out on better deals. That is why you should get multiple quotes at least once a year.

A recent study surveyed 1,000 vehicle insurance customers about their policy purchase habits. Here are some highlights from it showing how effective it can be in reducing rates.

  1. 76% of the participants said they saved money by shopping around. This is a very encouraging ratio confirming auto insurance comparison shopping works.
  2. 66% of customers who checked prices said it takes between 30 minutes and up to 2 hours to compare car insurance prices, while 16% said it takes less than half an hour. So, you have a good return for your time when the chance of saving money is high (76% saves) and it doesn’t take long.
  3. 39% of vehicle insurance policyholders didn’t get alternative quotes during their last renewal and 26% have never got multiple quotes. They will never know if they missed out on great coverage, better insurer or low price.

Comparing Car Insurance Quotes Can Save Money

To start with, you shouldn’t just hope that your current provider will offer you the best rates. It is worth shopping around at least once a year by getting multiple quotes to have a better understanding of current prices, coverage options, market participants and save enough money in the process. Here are the main reasons why it is worth your time as you have a good chance of reducing your rates.

  1. There are so many factors influencing your auto insurance premium and every insurer looks at each one of them differently to formulate their proprietary algorithms and price each applicant. That is why companies offer wildly different prices that make shopping around necessary.
  2. Premiums are expensive ticket items for households. Savings can amount up to a few hundred dollars that make it worth your time. Reducing costs is a good way of making your money go further and often necessary to keep up with expenses.
  3. Automobile insurance is a recurring expense you cannot be cavalier about. Every saving opportunity you miss adds up the amount of money you wasted. Besides, once you find the cheapest insurer at this renewal, you make sure that your next renewal is going to be cheaper as well, if everything remains the same.
  4. As you can see from the survey finding above, vehicle insurance comparison shopping isn’t time consuming. You give your best shot and if you cannot save money, at least you made sure you are currently paying a fair premium.
  5. There are many ways of shopping for car insurance that increases your chance of saving money. You can quickly find a comparison website that will give you the opportunity to get multiple quotes. Go directly to the insurers’ own websites or use an independent agent to do the shopping for you. So, you have hardly any reason not to get a few quotes and check prices when it is this easy.

Tips for Vehicle Insurance Comparison Shopping

Even if the process looks straightforward and you are a savvy shopper, there are a few key points to keep in mind in order to make sure you avoid the pitfalls and make the most of your time. Here are a few points to help you in this process;

  1. A lower quote may be due to less coverage for you and your vehicle or comes with higher deductibles. You should always check to make sure coverages, limits, and deductibles match up when comparing auto insurance quotes.
  2. Concentrate on getting quotes as fast as you can. Once you start seeing a few companies forming a cluster around a median figure you can start considering your options. In short, don’t start picking and choosing companies before you see their prices. This distorts the results because you end up getting quotes only from car insurance companies you recognize. There are many great carriers and you cannot possibly know all of them so let them quote first.
  3. Make sure you are always covered in the process of switching providers. This is not difficult in most cases as you can set your new policy to start at any time you like within reason and let your current carrier stop coverage at the same time. Or you instruct the new provider to start on the day of renewal.
  4. Make a habit of getting multiple vehicle insurance quotes periodically. Even if you don’t save much this year and decide to renew with the current carrier, check again next year because a lot changes in a year.
  5. Ideally, use several options to learn more and extend your reach. Agents can be a very helpful source of information and why wouldn’t you pick them if they are reasonably priced. And online shopping shows your options and allows you to stay in charge, even if you go with a broker at the end.

If you get only one quote and want to buy automobile insurance, you cannot possibly know what you are missing. Often motorists get a recommendation or hear that one particular insurer is cheap. You should definitely get a quote from such a carrier but get a few more from others. There are so many companies in the market and it only takes eight minutes to get a quote so you should at least get five quotes before even attempting to make a decision.