Auto Insurance, Insurance, Saving
July 06, 2017
If you have spent more than three minutes watching broadcast television, you’re well aware that insurance companies are eager to get your business. But despite all those commercials, the reality is that many drivers aren’t shopping around for the best auto insurance deal.
A new report from NerdWallet reports that more than one-third of consumers have gone at least three years since last checking if they could qualify for a lower auto insurance premium. According to NerdWallet, that’s likely leading to plenty of folks missing out on big savings: good drivers can save more than $400 a year on average by comparison shopping and switching to a less expensive policy.
I get how busy your life is. And I realize that it’s just human nature to simply go along with the renewal terms for an existing policy. But wouldn’t saving $400 or more a year be worth a few minutes of online comparison-shopping? I bet you can get a few auto insurance quotes spending just 15 minutes or so online. And if you work with an agent, I’d still recommend some online price comparison-shopping. If your current car insurance policy is significantly higher than what you find online, I would consider making a move. If your auto insurance is bundled with other insurance-such as homeowners insurance-ask the agent what the premium on the home policy will be if you don’t include auto insurance. You may find that the bundling discount isn’t nearly as important as moving to an insurer that charges a significantly lower auto insurance premium.
I want to be clear; this is not about cutting corners on your coverage. It’s all about taking advantage of the marketplace. Auto insurance has become a commodity. But it’s up to you to shop for the best deal. (See my Tips for Saving on Car Insurance.) There is no penalty for moving to a new insurer, and more than 400 reasons to consider it. Pull out your existing policy and plug in the exact same level of coverage you currently have into online apps to get a price quote on a new policy. If you haven’t done that in a few years, I think you may be surprised at what you can save.
Credit & Debt, Saving, Investing, Retirement