Auto Insurance Rates
Not Shopping Around Is a Costly Mistake
For more than five years, Lawrence Wilson hadn’t bothered to evaluate his auto insurance rates or even reexamine the kind of coverage he actually needed.
Personal finance website NerdWallet.com has released a survey suggesting that about 38 percent of motorists haven’t compared their auto insurance rate in at least three years, which is a costly mistake. In fact, just shopping around—i.e. when you compare insurance rates from at least 3-4 companies—can save you an average of $417.
Another interesting survey, which was conducted by the San Francisco Chronicle, found that a married couple got 17 different auto insurance quotes from 17 carriers, which gave them a highly variable price range, from $1,422 to a whopping $3,650 a year for the same auto insurance policy.
Of course, before you compare your car insurance rates you should first determine the kind of coverage that suits you. For example, optional coverages, such as collision and comprehensive insurance, are almost always necessary if you have a new and expensive car.
However, some coverages are state-mandated. For instance, in Massachusetts all drivers are required to carry bodily injury liability, property damage liability, uninsured and underinsured bodily injury, and personal injury protection.
To get the best deal on your auto insurance, you should be aware of the standard rates and the policy that meets your specific needs.
The Ideal Time to Shop and Compare Auto Insurance Quotes
Shop and compare auto insurance rates if you’re buying a new vehicle, getting married or divorced, moving, or adding family members to the policy. If you have received traffic violations or have been involved in an accident, it will also be ideal to re-examine your current policy to consider switching to another carrier.
The aforementioned factors have a significant impact on your auto insurance rates, which vary significantly among insurers. Remember that auto insurance companies operate in a highly competitive market so you can get the best deal if you shop around and equip yourself with the right knowledge.
Of course, having a clean driving record gives you a further edge in haggling down the price of your premium.
You can even explore your options if you’re in the middle of your current policy. After all, you can reimburse the unused coverage if you decide to switch carriers, although you may have to pay a small penalty fee.
After Comparing your Auto Insurance Rates: What’s Next?
Each auto insurance company offers discounts and rebates, which come with specific prerequisites. A good place to start is to ask them about their discounts for groups of people, professions, and affinities.
Discounts are also commonly given to safe drivers (i.e. those without claims or traffic violations in the last three years), good student drivers, and senior drivers.
If you have a clean driving record, surveys have shown that, on average, you pay 20 percent less than a standard driver.
You may also be eligible for discounts when you take safety driving courses and you drive a vehicle with good safety features. Let us help you to get the best car insurance rates and avoid paying more for your premium than necessary. Call or email and let us know your insurance requirements.
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Contact us today. Explain your specific needs to us and we can give you customized insurance rates and coverage, thus allowing you to save hundreds if not thousands of dollars every year.