October 28, 2009

Shopping Around For Auto Insurance Gives Leverage With Current Insurer

Auto insurance rates have been on the rise. Much of this has to do with the state of the economy and the increasing costs of claims for insurers. State, provincial and federal governments have considered initiating certain programs to help curb the costs for insurers and drivers. In the meantime, many drivers have considered shopping around at different car insurance companies for better premiums. This can be a great idea, especially if you have problems with other aspects of your auto insurance coverage or the customer service of the program that you're currently using. Doing a bit of comparison shopping can save drivers a lot of money in the long run.

The auto insurance industry is extremely competitive, and insurance companies do everything they can to get and keep new policyholders. Switching insurers can get a driver exclusive auto insurance rates that they might not have otherwise received. In this case, their new insurance company will offer a better auto insurance quote in order to "steal" business away from a competitor. Other than this, there's simple competition to take into account. You've got a better chance of finding cheap auto insurance quotes by looking at 12 companies than you'd have by simply looking at one, so drivers are making a good decision to compare a few auto insurance rates every once in a while.

However, there are advantages to staying with your current auto insurance company. That company has immediate access to your driving records, and many offer loyalty discounts. These factors may allow you to simply negotiate a better rate by calling them. Sticking with a single insurer may also help build your insurance score, making you more valuable to insurance companies if you should choose to switch in the future. If you've got an auto insurance company you like, it may be best to do a bit of comparison shopping to use as leverage. Call your insurance agents with the results of that comparison, and try to talk them into a lower rate. Never be afraid to switch your auto insurance policy to another company if you've received a better quote for the same amount of coverage. Switching insurers may be the best way to save money.

Taking a look at your auto insurance rate every few months is a good way to keep your costs in check. You should especially look towards other insurance companies if you suddenly have a premium hike that you didn't expect without good reason (no claims or traffic citations on your record). The Internet makes comparing auto insurance quotes easy, and it's worth a few minutes of your time to make sure you're not paying too much for your auto insurance coverage.