Is changing auto insurance companies financially beneficial?

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Things to Remember...
  • Free auto insurance comparison websites let you evaluate rates quickly and switch from one carrier to another
  • Because the industry does not have a single standard, each insurer sets its own prices relative to these factors
  • Some policy discounts are standard across virtually all companies, such as multiple policy discounts or good driving discounts
  • When you are thinking about changing auto insurance companies, you should also consider how much insurance coverage you truly need
  • Lowering premiums and adding discounts are tempting benefits, but they may not be worth the cost of leaving your current insurer
  • The easiest way to make the decision is to request a no-obligation comparison of several insurance companies

Free auto insurance comparison websites let you evaluate rates quickly and switch from one carrier to another. Is the switch worth it?

Continue reading to see if changing auto insurance companies will be financially beneficial for you.

You can always research and access FREE auto insurance rates before you change companies by entering your ZIP code into our free auto insurance comparison tool.

Advantages of Changing Auto Insurance Companies

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Moving from one auto insurance company to another can yield substantial benefits. Some of the biggest savings come from lower premiums, more discounts, and programs that better match your car insurance needs.

– Reduce Premiums

Insurance companies base auto insurance rates on a number of factors, including driving experience, accident history, vehicle safety, and the location of the automobile.

Because the industry does not have a single standard, each insurer sets its own prices relative to these factors.

A quick comparison of auto insurance quotes can give you an idea of whether you are currently paying too much for your coverage.

– Take Advantage of Additional Discounts

Some policy discounts are standard across virtually all companies, such as multiple policy discounts or good driving discounts. In other cases, the insurance companies choose to offer some discount programs and discard others.

By switching auto insurance carriers, you may gain access to discounts that substantially reduce your monthly payments. So it is always a good time to re-ask, “Do I qualify for an auto insurance discount?”

Some of the unique car insurance discounts offered by companies include:

  • Progressive’s Snapshot discount – which uses a tracking device to monitor driving habits. The company claims that good drivers can shave up to 30 percent off their car insurance premiums.
  • Nationwide’s farm bureau discount – members in California, Ohio, Pennsylvania, West Virginia, Connecticut, Vermont, Delaware, and Maryland can save 10 percent or more.
  • Allstate’s 55 and Retired program  which gives a 10 percent discount to qualified drivers.
  • State Farm’s good student discount – for full-time high school and college students. Individuals must be younger than 25 and hold a B average or better.

Not all auto insurance discounts are available in all states. The simplest way to determine your eligibility is to request a free insurance comparison quote from multiple companies.

Instead of looking at generic information on numerous websites, you can see exactly what you would pay under specific circumstances from a car insurance comparison website.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

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– Reevaluate Your Car Insurance Needs

When you are thinking about changing auto insurance companies, you should also consider how much insurance coverage you truly need. Here are a few questions to answer:

  • Are you carrying $100,000 of collision coverage on a car that is only worth $2,000? – Collision coverage pays to repair or replace your vehicle after an accident, but you will only be compensated up to the amount the vehicle is worth.
  • Have you recently moved into an area with high winds, fire danger, or high risk of vandalism or theft? – In those cases, you may want to evaluate the comprehensive portion of your auto insurance policy, which protects against non-collision-related damage.
  • Has your city been hit hard economically? – In tough times some drivers choose to drop their insurance coverage altogether. To protect yourself against uninsured drivers, you may want to increase your uninsured/underinsured motorist coverage.
  • Will you be adding a teen driver to your policy within the next year? – Car insurance comparison sites let you estimate the cost of insuring the whole family without any obligation to purchase that coverage. Looking at several quotes can give you a better idea of which insurance company will meet your needs now and in the future.

Disadvantages of Switching Insurance Policies

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In many cases, switching car insurance companies pays off for savvy shoppers. At the same time, if you are tempted by low quotes, be sure to consider what you will be leaving.

– Pay Termination Fees

Some insurance companies charge penalties for consumers who cancel their coverage before their renewal dates.

If your current insurer charges early termination fees, make sure that the savings you gain from switching companies offsets these penalties.

– Lose Loyalty Discounts

Many auto insurance companies reward customers who have been insured with them continually for three years or more. In some cases, these discounts equate to a savings of up to 25 percent.

Factor in these discounts when you are comparing quotes from several different cheap auto insurance companies.

– Lose Accident Forgiveness

Most drivers fear that their insurance premiums will increase after an accident. To minimize this stress, a few companies have start accident forgiveness programs.

For drivers who have been accident-free within the previous three years, these programs guarantee that a minor collision will not increase rates.

Some companies go a step further and guarantee that a major accident will not impact rates for people with safe driving records over the previous five years.

Overall Financial Assessment

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In the end, the decision whether to change auto insurance companies is a personal preference.

Lowering premiums and adding discounts are tempting benefits, but they may not be worth the cost of leaving your current insurer.

The easiest way to make the decision is to request a no-obligation comparison of several insurance companies.

You can review the quotes and discover the best policy to fit your current auto insurance needs.

Enter your ZIP code into our FREE auto insurance comparison tool to start comparing quotes and meet your needs!

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

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