Why Many Drivers Pay Too Much For Auto Insurance

Why Smart Consumers Compare Insurance Rates

In better economic times, it may be ok to just stick with your current insurer, even if the premiums are high. But these days, with tight credit, uncertain jobs, and rising prices, it is important to analyze our spending. And suprisingly, an auto insurance premium is a good place to start. The US car insurance market is very competitive, and consumers can take advantage of this to save money while getting top quality coverage.

Why is auto coverage a good place to start? Well, many bills are fixed. We all have to pay the same amount for our mortgages (or rent) every month unless we move. Utilities, like electricity and gas, probably are constant too, depending upon the season. It may be possible to find lower prices for some services, but it may not be.

Is Your Old Insurer Giving You the Best Deal On Car Policies?

But you cannot assume that your old insurer is giving you the best break on your policy out of some loyalty on their part. They may not be helping you take advantage of all of the discounts you are entitled to. In fact, they may not offer some discounts. You also cannot assume that the best car insurance company for your neighbor, your coworker, or your mom, is the right one for you.

Here's my experience. I had been covered, for many years, by one of the popular companies that advertises affordable policies on tv very frequently. But when I had to add a teenage driver and a second car to my policy, they raised my rates by a factor of four. See, they were a good and affordable choice for me. But they were not friendly to teens, even if they still kept my business.

I accepted competitive quotes. Another nationally know company, which is not famous for being a cheap auto insurer, but is well known for good service, actually slashed my current company's rate by $200 a month! They did this by allowing discounts for many things, including my child's driver's education course and a good student discount. Since I also moved my homeowners policy to them, they gave me a discount for having multiple policies with them.

Shop Competitive Insurers with Online Quotes

You need to shop around for the best car insurance quotes. Find cheap online car insurance quotes with our save, fast, and free quote form. Make sure you are getting the same coverage you had before, because you may not save money in the long run if you cut your policy. But even with the same coverage, another insurer may be hungry for your business.

Learn more about the top US car insurance companies.