Automatically renewing an existing insurance policy might be convenient, but it could result in missing potential savings. By not exploring different options or accepting the first quote, consumers might not get the best price available. According to CarInsurance.com, annual rates for drivers with good credit can vary significantly, ranging from $1,381 to $2,509 based on the insurer. This variation could exceed $1,100.
Howard Goldberg, vice president of the customer solutions center at Plymouth Rock Assurance, a provider of car and home insurance in six Eastern states, emphasizes the importance of obtaining multiple opinions to ensure the right insurance is selected.
Often, initial quotes may not reflect the full cost due to overlooked fees and exclusions, leading to surprises when the final price is higher than expected. Additional charges that some companies impose but others do not include installment payment fees, credit card payment fees, broker fees, and unnecessary riders such as accidental death coverage. Consumers unable to pay their insurance annually should prioritize fee-free installment options and avoid broker fees when online and in-person fee-free choices exist. It’s also essential to ensure coverage is neither excessive nor insufficient.
Policies might also involve exclusions, meaning certain claims may not be covered. These exclusions commonly include unnamed or unlicensed drivers, using a personal vehicle for business purposes, custom vehicle parts, and travel outside the U.S. Therefore, those with custom vehicles, frequent cross-border travelers, or home-based businesses using a vehicle should confirm their quotes include necessary coverage.
The first quote can serve as a benchmark for evaluating better deals. Stothard Deal, TransUnion’s vice president of strategic planning for insurance, suggests beginning by comparing the current insurance cost. A significant difference from the present rate indicates that exploring new coverage options could be beneficial. While comparing, consumers should consider the premium, coverage limits, deductibles, and available discounts to get a complete view of potential savings.
To shop effectively for car insurance, starting with an online calculator can provide a preliminary cost estimate. More detailed quotes can be obtained by providing additional personal information through a comparison website or directly from insurers. Independent insurance agents can also assist by collecting quotes from multiple companies, though it’s important to inquire about broker fees beforehand.
Reviewing car insurance options annually or whenever personal circumstances change, such as moving or buying a new vehicle, is advisable to ensure optimal coverage and savings.
