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Car insurance is one of those things we pay for regularly as a preventative measure and hope never has to be used - while fortunately many people rarely use car insurance , having it sure makes a person feel more prepared for when the unexpected happens. Of course it’s entirely illegal to drive without insurance, but there is a big difference between the standard and bare minimum 3rd party coverage and the fully comprehensive service offered by most providers. There are many important things an individual should do regularly to insure her or she has the lowest rate and the proper amount of insurance coverage. Too much insurance can be as bad as too little insurance – why pay too much when it’s simply not going to provide value for money? And when calling an insurance agent that agent will attempt to sell you the package costing you the most. Too much insurance will cost you time and money because you will be spending more for the premiums which can really add up over time; too little insurance will cost you time and money when the unexpected happens and you discover you are paying a tremendous amount of money on out of pocket expenses that the insurance provider, conveniently, did not cover. Do you remember years ago when you first got your insurance quote? Sometimes, there is even a free gift involved in signing a contract with that insurance company. Now, years later, you start to wonder how you can save some money with your car insurance. After all, you haven't had any incidents in the last 6-years, but those premiums have barely dropped. Is there something you can do? Of course there is. Now ask yourself this: how long have you had your current insurance provider? Are you absolutely positive your insurance provider is offering you the lowest rates on the market today? Have you even checked what you premium is, and how much it has increased by, year on year? One of the most popular ways to get lower premiums is to shop around for the best deals offered by insurance companies. Let's face it, insurance providers need your business as much as you need them and you can take advantage of that mutual relationship and save yourself some money in the process. Often, people will go insurance company shopping annually to get the best deals on premiums - companies rarely offer their best prices to existing customers, so it really can pay to have a search around. Situations change regularly – even with car insurance providers – so if you’d tried a provider in the past and determined that they are not cost effective, changes in your circumstances and their pricing policies may mean drastic changes in premiums. Even though an insurance provider offered a high rate last year, they may have lowest rates this year, and the opposite holds truth as well. Business models change, company risk models may alter, or there may be changes of a different kind, all happening behind the scenes, that affect you and your insurance premium in ways that you cannot predict. Another important factor in getting annual insurance quotes is you and your car. Did you know your insurance rates will change if you change how and where you park your car? Did you know the age of your children, your spouse, and especially you will affect the insurance rates? Every year families and family dynamics change, people get older and (maybe) wiser, people move house, and often those changes affect insurance rates. While the process of shopping around for the annual car insurance quote may seem inconvenient at best, staying up to date on what you are paying and what you are getting is a vital part of good car insurance. Remember, getting a quote is free, and all you spend is a little bit of time. Insurance quotes are readily available on the Internet, and purchasing a new policy is often easily accomplished online. There are definitely many reasons to shop around regularly for the best rates on your car insurance, but perhaps the most important factor is the peace of mind offered by knowing you are fully protected in the event the unexpected happens to you or your family.
Staff editor, Insurance Section, April 2007 |
