Everyone wants to find cheap car insurance, especially since it is mandated by state law. Comparing insurance rates to find the lowest online insurance rates, however, is not the only way to shop your insurance. You also need to find the best value from your insurance.
Here are some things to consider when you compare insurance rates:
What kind of insurance coverage are you comparing? Auto insurance rates are not created equally. Purchasing the wrong auto insurance package could leave you underinsured when you finally during a claim. Having to pay out of pocket during the time of a claim means you've paid for your insurance twice. Consider the real reaons for purchasing auto insurance. If you're like most people, choosing the right coverage is just as important as choosing the lowest insurance rates.
What kind of service will you have WHEN you have that accident? Face it, accidents occur; as a result you will have to file a claim. Whether you file a car insurance claim due to an accident or a homeowners insurance claim due to a weather-related claim incident; the wrong type of coverage WILL lead to frustration. Simply obtaining the lowest cost of insurance could hinder your ability to settle your claim if the company has poor claims service.
When should I shop for car insurance? Several life factors can determine when the best time would be to shop your insurance, such as:
o Buying a new car – Insurance for a new car is determined by many factors, like how expensive the car is, how the car is used, and how the average consumer is using the vehicle. Information on the safety of the different kinds of cars can be found at the Insurance Institute of Highway Safety: http://www.carsafety.org/. Buying a new car merits a fresh look at not only our car, but also your home and home contents insurance coverage. Bundling your home and auto insurance rates together makes your premium less expensive.
o Purchasing a home/refinancing a home – Why would you switch your auto insurance when you buy or refinance a home? The answer is simple; bundling. Your home and auto insurance should almost always be bundled together for the best rates, since insurance carriers give you discounts for having home and auto insurance combined with one company. It is very rare that two different insurance companies will give you better rates separately. Insuring all of your property under one carrier is the best way to maximize your dollars spent when possible.
o Lifestyle changes – Whether a teenager gets his first drivers license, a child goes away for college, a female driver turns 21/male driver turns, or a divorce or separation; any change in your life makes for a good reason to review your insurance coverage. You don’t know what changes can dramatically reduce your insurance premiums, so it pays (literally) to shop your auto insurance every three years.
Comparing insurance rates is smart, though having the best insurance coverage along with the best price is the smartest move you can make.
Roman Spradlin