Tips to Consider When Changing Auto Insurance Providers

Tips to Consider When Changing Auto Insurance Providers

According to research, the most common reason for wanting to switch is “price”, and it makes perfect sense, especially in tough economic times. That would explain the reason most insurance companies promise savings by switching. In fact, out of 2000 people interviewed, the majority said they would switch if they can save at least $20 per month.

Can you save money by switching to another insurer?

A deeper look into the marketing promises of leading insurers would lead you to think someone is not telling the truth. How can every company save you $200-$600 by switching? That doesn’t make much sense, now does it?

The truth behind the empty promises is that they’re all telling the truth! But how can people save by switching? Well, they’re only telling you that those who switched from company “A” saved $X amount of dollars, but they don’t tell you why they saved. Someone may have received tickets or got in an accident and they had to switch to another carrier offering better rates to the sub-standard drivers.

Tips for changing auto insurance providers:

Don’t believe that because someone else saved money by switching to company “A”, everyone else will too. The reality is that the only way to find out who can offer lower rates is by comparing quotes.

Use tools. Why call ten companies individually, when the Internet makes it easy to compare quotes from multiple carriers instantly. See bottom of article for example sites.

Consider important factors other than just price. You may not realized this now, but dealing with insurance company headaches will make you wish you would have paid more for a better, more reliable insurer. Consider calling customer service to get a feel for their assistance quality and hold times. Talk to someone who’s been insured with the company in mind and ask for some feedback

Take financial strength into consideration. What good would it do to be insured if the insurer cannot afford to pay for your claim? After AIG’s financial troubles, more people take this factor into consideration. Look into AM Best financial ratings for an indication of financial stability.

Look over government issued consumer guides such as the 9 ways to lower insurance premiums provided by the Citizen Information Center.