This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Is Shopping Around For Auto Insurance Worth My Time?





Question: I've been with the same car insurance company for over 10 years. I'm comfortable with them, but my friends say I'm overpaying.  Is it worth my time to shop around with other auto insurers? Can I really save that much?  

Answer:  Yes, and yes. Not only is shopping for car insurance much easier now -- you don't have to call multiple agents if you don't want to, because you can get quotes easily online -- and rates vary a lot from one insurer to another.  Our own analysis of quotes from six major insurance carriers recently showed that nationally, on average, motorists could save 32 percent by shopping around. (See “ Best states to save on car insurance”)

I know about this firsthand. My husband had been with the same auto insurance company since he was a teenager and had no plans to ever change.  But, after we moved a few years back we did our comparison shopping and found that staying with that provider would cost us over $1,500 more each year.   It was a no-brainer; we went with another insurer that was just as well-known and financially stable, but cost much less.

Instead of spending hours calling around for car insurance quotes, you can now go online and in minutes be viewing multiple insurance companies' rate quotes.  With sites such as CarInsurance.com, you can see the quotes side by side to easily see which auto insurance provider cost the least for your particular set of rating factors. 

It is understandable that you have a level of comfort with your current car insurance provider, but stepping outside your comfort zone may save you hundreds, or even thousands, of dollars a year on your car insurance premium.  (See “ Pocket $1,102 just by shopping around”)

You may receive a renewal discount or loyalty discount with your current insurer, but it's very likely that other companies may offer lower base rates and possibly other, better, discounts that will result in an overall cheaper car insurance premium.   

Review “ Your guide to car insurance discounts,” so you know what to look for when shopping around.  Also, if you are a low-risk, low-mileage driver, you may want to think about trying a pay-as-you-drive insurance program to bring down your rates. 

When checking to see if other car insurance carriers can give you better rates than your current insurer, make certain you request quotes for the same coverages with the same limits and deductible amounts.  If you don't, then one company may seem much cheaper than another just because you have lower limits, different coverages or chose higher deductibles.

Getting a car insurance quote online is quick and easy, as is purchasing a policy online since with many companies coverage can start immediately.  The best time to shop around is the weeks leading up to when your current policy renews or when you plan to make changes to your current policy, such as adding a new car or driver. 

Remember to verify your new car insurance policy is in effect before canceling your old one. You don't end up with an accidental lapse in coverage, which can be very expensive.

null

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,817.90 +7.84 0.04%
S&P 500 2,069.41 +5.91 0.29%
NASDAQ 4,754.8920 +41.9220 0.89%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs