Five Reasons for Switching Car Insurance

Roughly 72% of us renew with our car insurance company each year. But many of us could be saving hundreds of dollars if we simply switch car insurance.

Really!  Hundreds of dollars for switching car insurance.

Check it out, and if you decide to shop for car insurance today, roughly 60% or more of you could save money.

Why aren’t we switching car insurance more often?

If you’re still asking yourself, “Should I shop for car insurance this year”?  The answer is “yes,” but many of you will simply renew with your current insurance carrier because you think it’s too hard to switch auto insurance.

Honestly, we’re all very complacent. The pain of the auto insurance premiums has to get unbearable, or claims or agent experience has to be terrible, before we consider switching. This is why the renewal rate is so high for insurance companies.

The least likely to switch could save the most

Of the 72% of car insurance customers who, like clockwork, renew their auto insurance, 62% could be saving money. Just by switching car insurance. This complacency thing is powerful stuff. This means the people who could be saving the most shop the least.

To this point several years ago, Progressive Insurance published an analysis that showed that a policy (referred to as a “risk”), due to the many different ways it can be rated in the market, could have a variance in the premium paid of $400 or more annually. In simple terms, this means there are so many pricing differences between carriers, comparing quotes and shopping can frequently produce savings.

Sure, it’s not fun work to switch car insurance carriers. But even the insurance carriers are telling you to do it. Nearly every insurance carrier has an advertisement with its own estimate of what you can save by switching. Switch to carrier A and you could save $300, or customers who switched to Carrier B saved $500. They’re practically giving away the game. So, sure, it’s a bit of a hassle to switch, but if you invest your time wisely, you can save money on your car insurance.

Let’s put the savings in perspective

Before you put that car insurance renewal on cruise control, think of the things you could spend an extra $400 on this year:

• Morning Coffee for about one year
• Internet Services for about one year
• 18 Pairs of movie tickets
• 2 Great Tickets to see your favorite band
• 10 Months of lunches away from the office
• Buy roses for that special someone every 2 months
• Get a gift for your favorite insurance agent (OK … I made that one up)

All these things are more fun than paying extra for car insurance premiums!

Ready to switch car insurance?

When you’re ready to start shopping, we recommend you find a source that can provide you with comparison car insurance quotes. Comparing quotes is a great way for you to shop the premiums of different insurance carriers. You can also call an independent insurance agent, who can compare rates as well, and can even provide you with coverage comparison, advice, and recommendations.

This doesn’t only apply to car insurance. You can frequently save money when you shop for home insurance or compare business insurance quotes. In fact, switching home insurance or even business insurance is really that hard, either.

The bottom line

If you switch car insurance, you have a good chance of saving money. But don’t just switch for the savings, sometimes we put too much emphasis on price. You need to make sure you’re also getting the same or better coverage with you make a change. Additionally, when you switch, you can find new auto insurance discounts that can help, like discounts for bundling auto and home insurance.

We think the best way to shop is with an insurance agent. If you don’t have an agent, contact us, or start a quote online. We are always happy to provide you with a free consultation.