One critical component of owning a car is car insurance. Drivers should make sure that they have this important thing covered before they get behind the wheel, with no lapses in coverage. If you’re thinking about switching from one company to another, it’s important that you do enough research to feel confident in your decision. These tips from Edmunds will help you make the most of switching your car insurance:
1. Review your current driving situation.
Take note of your driving circumstances as well as the needs of other drivers in your household. Do you have a newer model car? Do you commute several miles each week to work? Do you have recent traffic tickets?
According to the National Association of Insurance Commissioners (NAIC), your potential new insurance company may ask you all of these questions as part of the underwriting process. You'll also likely be asked about the number of drivers on the policy, your driver license information, and the insurance coverage and limits you'd like to purchase.
Take a look at your existing auto insurance policy. Knowing what you currently have will make it easier to create apples-to-apples comparisons with the rates you receive from different insurers. An easy way to do this is to study your current policy's declarations page, says Vaughn Graham, president of Rich and Cartmill insurance company in Tulsa, Oklahoma.
"The declarations page describes the insurance you have, including the amount of coverage as well as coverage limits, and the amount of your deductible," he says. When you're more informed about your current coverage, it can help you become a smarter shopper.
2. Shop around.
Once you're familiar with your current policy, it's time to look for alternatives. A good first call is to your current insurance agent or the insurance company itself (some insurers, such as Geico and Progressive don't work with agents). Even if you're not happy with your existing policy (if you think the premiums are too expensive, for example), ask if there are ways to lower your rate for the same amount of coverage, says Salvatore. You may be eligible to receive discounts you're not getting.
Here's a list of common insurance company discounts, according to the NAIC:
- Having safety devices in the car, such as anti-theft features
- Having a good driving record
- Driving a low number of miles a year
- Having multiple cars on the same policy
- Being a student who gets good grades
- Insuring both your home and car with the same provider
While you're reviewing discounts, be aware that switching to a new provider could affect discounts you already have with other types of insurance. For example, if you're already getting a homeowner's and car-policy rate reduction from your current provider, and you then move your car insurance to a different company, you may lose the discount you receive for homeowner's insurance. It may make more financial sense to stay where you are, or switch both policies to a new provider that will give you a rate reduction for both.
Get more information about how to switch car insurance at Edmunds: http://www.edmunds.com/auto-insurance/four-steps-to-switching-car-insurance.html
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