Why You Should Compare Car Insurance Quotes

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Car insurance is one of those important necessities it’s easy to forget about. But forgetting about it can cost you money in the long run. As a general rule, you should compare car insurance quotes on a regular basis (at least once every year) to be sure you’re getting the most coverage for your budget. Here are some important reasons why you should routinely compare car insurance quotes:

Rates can vary for the same coverage – insurance companies looks at factors such as your age, driving record and claims history as well as the type of car you drive. Every car insurance company has its own formula for determining how such factors affect rates and because of that, your rates can vary from company to company or from year to year, even for the exact same package of coverage options in a policy.

Companies change their rates – like any other business, car insurance companies stay competitive by changing their rates. If one company begins offering a loss-leading feature of coverage such as accident forgiveness or a pay-in-full discount, competitors will soon find ways to lower their rates to remain competitive.

Your needs will change – the insurance you needed as a new driver won’t be the same when you turn 30 or get married. When you life situations change, so will your car insurance requirements, which is another good reason to routinely compare car insurance quotes. As your life circumstances change, so do your auto insurance needs. Some of the events that can cause you to consider new car insurance would be:

  • Getting married
  • Having children
  • Passing milestone birthdays (25, 30, 40, etc.)
  • Buying a new car
  • Buying a home
  • Moving to a different state

It’s easy to do – with the advent of online services, it’s very easy to compare car insurance quotes and rates. In fact, you can get car insurance quotes any time of the day and from the convenience of your home computer or even a mobile device like a notepad or smartphone. Even if you prefer to personal touch of a face-to-face meeting with a prospective car insurance agent, going to any meeting armed with several competitive quotes you found online will help.

Know what you’re reading

When you do get a car insurance quote to compare or contrast what you’ve been relying on, be sure you understand what it is you’re reading. While there may be differences in presentation and layout, most car insurance quotes will include at least these following areas:

  • Declarations (generally a summary page) that outline who is covered and what cars the coverage applies to, the coverage options, limits and deductibles
  • Coverage & agreements, spelling out exactly what your insurance company will pay for in the event of a claim
  • Exclusions detail what, if any, exclusions to coverage and claims paying will be applied by your insurance company
  • Definitions, will give meaning to industry terms used in your quote and usually spells out your rights under any prospective policy

So don’t let your car insurance policy rollover from one term to the next without reviewing your coverage options, rates and any new discounts you may be eligible to apply for.

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