The Importance of Comparison Shopping for Auto Insurance

November 4, 2015

Thinking about auto insurance, or any kind of insurance for that matter, can be a drag. There are a lot of details, many of which we don’t understand, and all we really want is to pay a cheap monthly cost and be taken care of if an unfortunate scenario were to occur. But because insurance is boring and necessary, we tend to jump on the first policy that agrees with our wallet, or stick with an existing policy we’ve had for years, regardless of if it’s even a good deal or not. We’re here to tell you that shopping for auto insurance doesn’t have to be so hectic.

Keep reading to learn why comparison shopping for auto insurance quotes is a must.

Get at Least Three Quotes

This sounds like common sense, and maybe it is, but many people fail to take the extra 10, 20 or however many minutes to explore the full scope of policy quotes available to them. There are plenty of auto insurance quotes comparison websites like CoverHound that auto generate three to five insurance quotes from different providers based on the information you put in. The best part is the process literally takes no more than five minutes.


Discounts and Perks

Every insurance company offers cost incentives to reward safe driving records, vehicle features and behavior. Some of these discounts — like having anti-lock brakes, anti-theft devices, or a new car — will be introduced to you through prompts from comparison insurance websites or asked about by an agent.

However, it may be up to you to ask about the other discounts. Things like going paperless with your bills, choosing automatic withdrawal payments and having no violations or accidents for up to three years all can save you money on your policy, but not every insurance company will be forthcoming about these savings opportunities. Other discounts to be aware of include a utility discount, which is available for vehicles made before 2002, or simply already having a separate insurance policy with a company and therefore bundling your policies.


Saving Money on Your Existing Policy

If you’ve been with a company on the same policy for a while and the rate hasn’t changed, it could save you a lot of money just to pick up the phone—sometimes half. In fact, having two scheduled times a year where you call all your providers could save you huge percentages off all your bills. Because as much as you think your current insurance agent loves you, they’re not going to call you up and offer a better policy. You have to call them. When you do, make sure you have a competitive price offered to you elsewhere so they’ll be forced to take action for your business.


Ironing Out the Details, Going Line by Line

To make sure you’re getting the best possible price on your auto insurance policy, it’s essential to go line by line between competing quotes. For example, the minimum limit of liability coverage isn’t uniform across providers. So, the cheapest quote you choose could also end up having the lowest limit of liability coverage, and might not fit your needs best. Also be mindful of whether uninsured motorist coverage is included and what that coverage looks like. After all, an estimated 12.6 percent of drivers nationwide are hitting the roads uninsured, according to the most recent numbers from the Insurance Information Institute. Not purchasing this add-on is a big mistake as without it you’ll have no way to repair the damages your vehicle’s suffered, other than out of your own pocket.

In the end, the insurance provider you choose should not only be offering a competitive low rate, but they should give you the feeling of security. Don’t choose an insurer that’s a few bucks cheaper but won’t give you the personalized service you deserve. Go with a company you trust, respect and know will have your back in the worst of times.