What You Should Know About Switching Auto Insurance Providers

From the very first time that you bought insurance coverage for your car and received an insurance card you likely thought that you were getting a pretty good deal. Auto insurance is one of the few services that most people find necessary that varies wildly in price. One person with a flawless driving record may have exceeding low rates, while someone with a very similar driving history might end up paying the same amount as a driver who has been in several auto accidents.

When you compare car insurance companies, you can’t just look at the savings that they advertise. For one, all drivers are going to have a unique experience with every rate comparison that they receive. Then there’s the fact that drivers living in New York City are always going to pay more for insurance than those who live in less populated areas, such as Dover, Delaware. Here’s what you have to know the next time you go to switch car insurance providers.

Your Location Has the Biggest Impact

High crime, low crime, urban, or rural – if you live somewhere that has congested roads, high auto theft rates, and you hear about auto collisions on a daily basis, your auto rates are going to be higher. Likewise, drivers who live in areas where you can drive for miles before you see a single business or residence will find rates tend to be a little lower. Just as you would expect to pay more rent for an apartment in a major city versus one in a suburban area, you can count on paying more for your auto insurance if you live in a place that is highly populated.

Auto Insurance Rates Fluctuate Around Renewal Time

So, you’ve been a faithful customer to your auto insurance company for several years, and then you find out that your rates are going to go up the next time that you renew. Switching car insurance companies can help, but don’t think that you are going to get huge savings on your premiums over the life of your policy. In fact, a lot of car insurance providers will give you a discount for initially signing up, but those rates are not guaranteed. What you might want to do is simply ask your auto insurer why you are seeing a rate increase. If it has something to do with you having an accident in the last six months or the number of points that you have on your license, you will likely get similar quotes from other auto insurance companies.

You Need to Compare More Than Just Rates

Being with an insurance provider who promises to keep your rates low is all well and good, but you have to ask if you are getting an ample amount of protection on your vehicle. For instance, drivers with low rates sometimes choose the lowest level of coverage on their vehicles, which means that they will have more expenses to cover if they ever get in a serious accident. Your deductible would be higher, and your auto insurance company would pay a lesser amount in medical and personal property damage expenses. This could make you liable for the difference if you caused a lot of damage in a wreck, meaning that the other party might elect to sue you in court.

If you pay less for your auto insurance, you get to keep more of your money for auto repairs and maintenance, which can make being a driver a lot more convenient. Some drivers switch car insurance companies every six months, constantly looking for better rates and more savings. On the other hand, it may make sense for you to develop a relationship with your auto insurance provider and ask how you can get better rates without compromising your level of protection, especially if you are a safe driver who always makes your payments on time.

Leave a Reply