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Cheap insurance Quotes Ė Choosing an Insurance company

Contributed by Redding Used Cars

In the United States automotive insurance is a requirement, not an option. That doesnít mean though, that you just accept the first plan offered to you and pay what ever they say. You do have choices and those choices can greatly affect how much you pay each year for coverage. Itís really not that difficult to find the cheapest insurance rates.

There are two main categories that you need to consider while looking to cut down on your automotive insurance bill. Choice of company and type of coverage, in this article we will be discussing one of those.

Choosing a company

One of the criterion used by a company to set their rates is their past experience. How much did they pay out in claims vs. the amount that was brought in? If they had a larger number of claims then the price for insurance raises, fewer claims, lower prices. This tells you two things, first they really would like to only have people with good track records that have a lower likelihood of filing a claim and two, (this is very important to remember) their prices will be frequently adjusting in relation to other companies.

If one company has a bad year and another has a good year in regards to claims then the one with the lower claims will likely have better rates. What this means to you is just because the company you are with had the best rates when you renewed last year, DOESNíT mean that they will necessarily have the best rates this year. You renew you policy every year that means that you need to price check every year.

Does Consumer Loyalty pay?

Insurance companies do not have any loyalty to you; there is very little reason to be loyal to them. If you can get a better insurance quote at another company that has a good record, then you should move. Likely you will not bother to move for a small difference in rates, but rates can be dramatically different between companies, so it is worth checking.

Often loyalty is misguided, you feel that you have been with a company for a number of years and because of that they will value you as a customer and will in some way give you special consideration. Insurance companies do not look at it that way. Even if you have been with a company for decades they can increase your rates the first time you make a mistake (a traffic ticket) or need to make a claim and they will all do their best to pay out as little as possible when you do file a claim. Being with a company that has a higher rate just so you can remain loyal to one company usually does not pay off.

Get quotes every time you renew

It is usually best to start getting insurance quotes about a month before your policy renews. This gives you some time to call each of the reputable insurance companies for quotes. Choose your coverage first, do you really need comp. and collision? Does your liability coverage suit your financial requirements? How many miles do you drive? Are there discounts you can ask for like good driver, no smoking, and good student? Your age can even make a difference. If you require dui auto insurance be sure to tell them. Make sure you give the insurance agents all the same information so the quote will be accurate. Donít allow them to make any changes in coverage (except some companies offer discounts other donít). If you do decide on a coverage change, you need to start all over and get quotes from them all again.

Within an hour or so you can call each of the companies and have them call you back with a quote (expect that to take a day or two). Make your final decision when all of the quotes are in.

Donít let roadside coverage enter into your decision yet. Most companies will allow you to buy their roadside coverage even if you donít have a policy with them. Roadside coverage is not the same for each company. Look into the exclusions and coverage and stay with the company that fits your needs, choosing your auto insurance separately.

Yes, it takes some work, but it can also save you hundreds of dollars. You can also do the same with your homeowners, renters, boat or other insurance. It doesnít take long for this to add up, possible enough to pay for your next vacation. So, yes, it is worth the time!

 

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