Should you shop around for car insurance?

If you are wondering should you shop around for car insurance, you absolutely should shop around. It is the best way to find cheap car insurance rates for the best coverages on your car, and it doesn’t need to be time-consuming.

Nowadays, you can comparison shop and instantly receive detailed comparisons online. We’ll cover some of these methods and tips below. To jump right in, enter your ZIP code into our free online quote comparison tool.

How to Shop For a Cheaper Rate

Why must you shop around for car insurance in order to receive a better deal? Simply put, the car insurance companies are in business to make money.

If you are willing to pay a high price for a standard policy, they are not going to convince you otherwise.

Therefore, it is your responsibility as an educated consumer to go to your insurance company and tell them you know the standard rates for car insurance and you need a policy that reflects those prices.

You really have to know the standard rates and what is the average monthly car insurance payment before you start asking for a discount. For instance, you have to consider the typical price of liability insurance, comprehensive insurance, and collision insurance.

You may also want to add on uninsured or underinsured motorist protection coverage.

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Deciding How Much Coverage to Get

Once you decide what policies are appropriate, you must decide how much coverage you need.

Experts recommend that you carry 100/300/100 in just liability coverage. State minimum coverage requirements are woefully lower. Of course, you will pay more for better coverage which is why many folks only take out the state required amounts.

Learn about minimum car insurance requirements by state.

To some extent, your age, car model, credit, and driving history will determine your monthly premium. However, do not conclude that every insurance company is going to offer the same rate.

While your insurance company is regulated by the state you live in, the actual price they give you is dependent on their own financial strategy and their understanding of current market trends as well as your risk factors.

Usually, when an insured driver stays with an insurance company for multiple years, the insured starts to expect a discounted rate — not only for loyalty but also for safe driving performance.

The company may be willing to offer the discount outright or may be waiting to see if you notice you’re overpaying.

There will be times when the insurance provider may not budge on a policy rate.

Maybe they’re suffering financially or are convinced that you are a high-risk driver. If so, then you have to take the initiative and start shopping for car insurance with a different insurance provider.

Best Way to Shop for Car Insurance

Insurance companies are highly competitive, so you may be able to negotiate a price.

It may also help to tell your current insurance company that you have a competing offer. The original company may then offer you a discount.

Remember that the quote you initially get from an insurance company is not a hard estimate. It is a quote based on statistical averages. No company is going to give you an exact quote until all data is reviewed.

Be sure to check with any provider you are considering and ask about special car insurance discounts, such as:

• Multiple driver policies
• Anti-theft car insurance discounts
• No claims discounts

You may also be eligible for savings from your current provider or another provider if you are a senior or a military veteran. We’re not just spouting hype for insurance companies. You can actually save money when you shop.

The prices you get from auto insurance companies also depend on a variety of factors, such as what type of auto policy you need. Do you need comprehensive coverage, collision coverage, personal injury protection (PIP), and underinsured motorist coverage? Or just bodily injury liability and property damage liability insurance?

Your driver profile is pretty important here also, as your own clean driving record (or not-so-clean), credit score, location, and more are used to calculate your rates.

Case Studies: The Benefits of Shopping Around for Car Insurance

Case Study 1: Sarah’s Savings

Sarah, a 30-year-old driver with a clean record, decided to shop around for car insurance after her premium increased unexpectedly. She used an online quote comparison tool and obtained quotes from multiple insurance companies.

After comparing the prices and coverage options, Sarah found a policy that offered the same coverage as her previous policy but at a significantly lower rate. By shopping around, Sarah was able to save $500 per year on her car insurance.

Case Study 2: David’s Discounts

David had been with the same insurance company for several years. He decided to shop around when he heard from a friend that he might be overpaying for his coverage.

David obtained quotes from different insurance companies and discovered that he was indeed paying more than he needed to. Armed with this information, David contacted his current insurance company and informed them about the competing offers.

As a result, his insurance company offered him a loyalty discount, reducing his premium by 10%. By shopping around and negotiating with his current insurer, David was able to save $200 per year on his car insurance.

Case Study 3: Lisa’s Comprehensive Coverage

Lisa recently purchased a new car and wanted to ensure she had adequate coverage. She decided to shop around for car insurance to find the best policy for her needs. Through her research, Lisa discovered that different insurance companies offered varying rates for the same coverage.

She obtained quotes and compared the coverage options, focusing on comprehensive coverage and uninsured motorist protection. After careful consideration, Lisa found a policy that provided comprehensive coverage and additional protections at a competitive rate. By shopping around, Lisa obtained the coverage she needed without overpaying.

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The Final Word On Benefits of Shopping for Car Insurance

Now that you learned why the answer to should you shop around for car insurance is yes, you can take the tools you learned to shop around for car insurance and get a policy.

If you are ready to start car insurance shopping, plug your ZIP code into our free quote tool to do just that, and start saving today.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption