Car insurance is one of those things that we know we should shop around for, but so many people never look at alternatives. Why do you think this is? A lot of times they are happy with their current coverage, and maybe the coverage they have really is the best coverage at the best price. But I think a lot of times, people don’t want to deal with the hassle of changing insurance providers.
My Experience With Car Insurance
I’ll admit that I was one of those people. When I made the jump from being on my parents’ policy to getting my own policy, I stayed with the same company. I didn’t even think about switching. I stayed with this company for another three or four years until I read an article similar to this one. It talked about how different insurance companies score risk differently, and as a result can end up charging significantly different rates for the same coverage. It was an eye-opening experience, and I decided to go through the insurance shopping process.
Like so many others, I also thought it was going to be a real hassle to change insurance providers. But it really wasn’t as bad as I pictured it in my head. I went online and looked up car insurance quotes (each quote took around 20 minutes) and found one that matched my current coverage limits and deductible. I ended up savings several hundred dollars over the policy period.
Tips and Tricks
However, there are some things to watch out for when shopping around for car insurance. While price is definitely important and is probably the main reason you’re looking around at insurance quotes in the first place, you also need to keep in mind that adequate coverage is also important. The last thing you want is to get in an accident and realize that the damages caused add up to a lot more than your coverage limits. One of the ways insurance companies are able to offer the discounted rates you see online is by scaling back on coverage or increasing the amount of your deductible. These are legitimate ways to reduce your rates, as long as you’re fully aware of the reduced coverage and higher deductible.
I had a friend fall for this a while back. They increased their deductible from $500 to $1,000 to reduce their premiums. I don’t remember how much their monthly premiums decreased, it was fairly significant. But, a few weeks later they got in a minor accident. Instead of having to pay their $500 deductible, they had to pay their new $1,000 deductible. It was really a case of bad timing, but it’s something to keep in mind.