If you have had the same insurance for a long time, you may wonder why comparing different quotes from other providers is worth the trouble. You are happy with the customer service you receive, and you may have even had a claim that went smoothly. You have managed to budget in your premiums for some time. Is it worth the effort to get coverage quotes from different companies?
You have probably seen the commercials and ads from insurance companies claiming that they can save you hundreds of dollars each year. The truth is that those ads are not exaggerating. Each insurance company uses its own algorithm to determine rates, and those rates can end up varying by hundreds of dollars over a term.
You can save a little with liability, a little more with full coverage and still more with any add-ons that you want. By the time you get done, you may find a difference of $500, $600 or even more in a year’s time. Just imagine what you could do with that money.
It doesn’t make much sense at first glance how an insurance company can offer one rate that is drastically lower than another company’s. After all, this is a regulated industry. Regulations require the insurance provider to use the same algorithms for all customers, but they are not always limited on what their rates may be.
For instance, if you are a male, age 24 and you check insurance quotes for yourself, they must be the same as for every male age 24 in your area. Of course, they can vary based on your driving record and other factors, but you cannot pay more just for your age over someone else the same age. Once you turn 25, your rates can be lower than the male who is still age 24.
The key to getting the best deal is to make sure you compare rates with the same information. If you fail to fill out the forms exactly the same, you may get quotes that are not accurate. That is one reason most insurance quotes require your zip code. Where you live makes a difference in cost along with many other factors.
You also want to make sure you are comparing the same coverage limits when getting quotes. A company that offers 25/50/25 coverage may be less expensive than one with 30/60/30, but you are getting less coverage. You may discover that the second one actually has a better rate.
Another factor to consider is if you can improve your options for better rates before getting insurance. For instance, taking a defensive driving course could provide a discount. You may belong to certain clubs or work at specific companies where you would receive special discounts. Those could impact the results from your quotes and change the bottom line.
Getting insurance quotes is just the first step in selecting an insurance provider. You also want to consider how much insurance you need, what discounts you may qualify for and the quality of customer service with the providers. Then, you can select a company that fits your needs and budgets and provides the features that you want.
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