If you have not been on the lookout for the best car insurance companies in more than 3 years, then you might be spending more than necessary on your car insurance premiums. Today’s economy is all about getting the most out of the consumer. Your loyalty with your old car insurance company is costing you more money than you think.
Why you need to shop for new ones
Different factors affect the rates of different car insurance companies. While it’s true that your history as a driver affects the premiums you pay for car insurance, the systems that control these rates are no longer uniform. Staying in the same car insurance company can jack up the annual premiums you need to pay for because your current service provider can try to get what they spent on you in the past in increments. These might not be obvious at first, but if you do the math, you’ll find you may be losing hundreds of dollars for benefits that are just not worth what you pay for.
Credit standing counts
If you have bad credit with car insurance companies, the same principle follows. You are most likely to pay a higher premium with them. They will also put you in a 36-month-blacklist among other car insurance companies which would affect your chances of getting better rates elsewhere. This means you will be stuck with a bad rate for at least a year, paying for low benefits that are not likely to cover the damages just in case you figure in a car accident.
Different car insurance companies have different assets. This means that what your current company might offer for a higher price, a different one could offer for less. Do not be afraid to shop for something better especially if the rates of your current car insurance companies get too high. This just means that you are not likely getting the best deal from them and it’s time to move on to better pastures. Research on the rating of the car insurance companies you have on your shortlist, however, to make sure that you are not basing your decision solely on the rate. A low premium is not always your best option, especially if the insurance company has a reputation of low-balling damage costs.
What you should look for
The first thing you should research on is the “rating” of the car insurance companies you are considering. Do they at least belong to the top 10? What do the top 3 have which your prospective insurance company does not? Are the offerings the perfect fit for your specific needs as a car owner? More than anything, the type of insurance you should choose should be the perfect fit for your needs.
It is useless to pay for a benefit you would not use, like changing the rear view mirror for example. That sort of damage protection is too little, you can pay for it out of your own pockets. It is unnecessary to include roadside assistance in your benefits too. The more you use your car insurance company for roadside assistance, the lower your score gets.