When to Switch Car Insurance Companies

Car insurance is expensive. Many drivers spend two thousand dollars or more a year to insure the family vehicles. Drivers should review their auto insurance rates on at least an annual basis. Insurance shopping may not be as enjoyable as other types of shopping, but it can save drivers hundreds of dollars a year.

Insurance rates fluctuate constantly as insurance companies take a variety of factors into account when calculating rates. Some insurance companies, including many national brands, may charge a driver hundreds of dollars a year more than their competitors. Drivers need to make sure they are getting the best possible rates for the insurance they are paying for.

Auto insurance advertising can be confusing. Many major companies state they can save drivers hundreds of dollars a year on an auto policy. This may be true. A variety of factors affect rates including the amount a car is driven, the drivers’ age, sex, and marital status, a driver’s credit history, the location of residence, the amount of claims and claim fraud where the driver lives, the driver’s record, and the vehicle make and model. Some companies may charge less for liability insurance but more for other types of auto coverage such as Uninsured Motorist or Personal Injury Protection coverage.

Despite the confusion, shopping for auto insurance has never been easier. No longer do drivers have to make an appointment or stop by the local insurance agent’s office to shop for insurance. Many auto insurance companies sell auto insurance directly over the phone. For many, the easiest way to purchase insurance is online. In just a few minutes, a person can compare rate quotes from multiple insurance companies and get the best price.

Switching auto insurance companies is easy. Normally all a driver needs to do is send written notice of cancellation with the date the policy is to be cancelled. When considering a new insurer, drivers should review company ratings and talk to friends and family.

Drivers need to ensure there is no gap in coverage and their new insurance takes effect immediately upon cancellation of a prior policy. Driving without insurance is against the law in nearly every state and can put a driver in serious financial jeopardy. Switching insurance companies at the time of your renewal is an easy time to make the transition.