Comparing Auto Insurance Quotes May Help You Save
A common mistake most consumers make when shopping for auto insurance is failing to compare quotes from multiple providers. Some may believe it takes too long to receive just one quote or that sticking with the same company for years will give them the best rate available. However, that isn't always the case.
Insurance companies often rely on complicated algorithms and pricing formulas to determine their insurance rates. Because of this, it's possible to receive a different quote from different auto insurance providers. Multiple factors can affect your auto insurance rate, such as:
- Age and driving experience
- Vehicle information
- Zip code data
- Home ownership
Reasons to Shop for Auto Insurance
Your vehicle's make and model significantly affect how much you'll pay for auto insurance. If you have recently purchased a new car, you'll likely pay a different insurance rate than your previous car.
Expensive, high-end vehicles typically cost more to insure due to their high repair costs. You may want to choose a car with high safety ratings to receive a lower premium. Different providers may rate the same car differently, so comparing quotes could help you find the best combination of coverage and price.
You may be happy with your auto insurance rate currently, but once it's time to add your teen driver to your policy, your rate will most likely increase. Due to their lack of driving experience, teen drivers are some of the most expensive drivers to insure. Shopping around will help you find a carrier with the best rates for teen drivers.
If you haven't changed your address or job in some time, your insurer may raise your rate, assuming you won't make a life change by switching carriers. In insurance, this practice is called price optimization. Although some states have banned the practice, it may still occur in states without regulations against it. Therefore, it is recommended to routinely check auto insurance rates from different providers to ensure your rate is fair.
You may be unaware, but some insurance companies use your credit score to determine your insurance rate in multiple states. Some may consider your credit score more than others. If you've recently had a significant change to your credit score, shopping around could help you find a better deal. If you are a good driver with a low credit score, finding a company that weighs additional factors more heavily than credit could be in your best interest.
Let's say you get a speeding ticket or citation for not coming to a complete stop at a stop sign. After a traffic violation, your insurance company will likely raise your rate unless you go to traffic school. The same applies to fender benders. If you've had a minor accident or traffic violation, shop around for an insurer that will not penalize you as much as your existing carrier might.
Each state has different auto insurance requirements. If you've recently moved, you may have to update your coverage to reflect your state's minimum insurance requirements. Some carriers may also rely on zip code data to determine your insurance premium, so your rate may change even if you stay within the same state but move to a new zip code.
Additionally, most insurance companies have multi-policy discounts, but not all are equal. You may save hundreds by bundling your policies after shopping around for the right insurer. You may even end up with better coverage than what you started off with after switching.
On average, married individuals have lower rates than single people, but how many newlyweds take the time to revisit their insurance policy? Most people pay for their insurance and forget about it. When you see an opportunity for a discount on your rate, take it. That often means shopping around to get the best quote.
Why Shop With AIS?
At AIS, we've been helping customers find and compare rates from highly-rated providers for over 55 years.
Our insurance specialists will work hard to find you an affordable auto insurance policy that suits your needs and your budget. Plus, we know how to look for insurance savings, often saving you hundreds of dollars per year.
For a free car insurance quote, speak with an insurance specialist by calling (888) 772-4247.