I've been with the same car insurance company for over 10 years.
I'm comfortable with them, but my friends say I'm overpaying.
Is it worth my time to shop around with other auto insurers? Can I
really save that much?
Yes, and yes. Not only is shopping for car insurance much easier
now -- you don't have to call multiple agents if you don't want to,
because you can get quotes easily online -- and rates vary a lot
from one insurer to another. Our own analysis of quotes from
six major insurance carriers recently showed that nationally, on
average, motorists could save 32 percent by shopping around. (See "
Best states to save on car insurance
I know about this firsthand. My husband had been with the same
auto insurance company since he was a teenager and had no plans to
ever change. But, after we moved a few years back we did our
comparison shopping and found that staying with that provider would
cost us over $1,500 more each year. It was a
no-brainer; we went with another insurer that was just as
but cost much less.
Instead of spending hours calling around for car insurance
quotes, you can now go online and in minutes be viewing multiple
insurance companies' rate quotes. With sites such as
CarInsurance.com, you can see the quotes side by side to easily see
which auto insurance provider cost the least for your particular
set of rating factors.
It is understandable that you have a level of comfort with your
current car insurance provider, but stepping outside your comfort
zone may save you hundreds, or even thousands, of dollars a year on
your car insurance premium. (See "
Pocket $1,102 just by shopping around
You may receive a
renewal discount or loyalty discount
with your current insurer, but it's very likely that other
companies may offer lower base rates and possibly other, better,
discounts that will result in an overall cheaper car insurance
Review "Your guide to car insurance discounts," so you know what
to look for when shopping around. Also, if you are a
low-risk, low-mileage driver, you may want to think about trying a
pay-as-you-drive insurance program to bring down your
When checking to see if other car insurance carriers can give
you better rates than your current insurer, make certain you
request quotes for the same coverages with the same limits and
deductible amounts. If you don't, then one company may seem
much cheaper than another just because you have lower limits,
different coverages or chose higher deductibles.
Getting a car insurance quote online is quick and easy, as is
purchasing a policy online since with many companies coverage can
start immediately. The best time to shop around is the weeks
leading up to when your current policy renews or when you plan to
make changes to your current policy, such as adding a new car or
Remember to verify your new car insurance policy is in effect
before canceling your old one. You don't end up with an accidental
lapse in coverage, which can be very expensive.