The New York Insurance Information Institute suggests asking if you are satisfied with the cost, coverage, and service of your current policy each time it comes to renewal. If the answers are "yes," continue with your policy. But if you're not sure, go shopping.
Here are four key steps to take when it comes to changing car insurance:
1. Review your current driving situation
Take note of your driving circumstances as well as the needs of other drivers in your home. Do you have a new car model? Do you commute several kilometers each week to work? Do you have recent traffic tickets?
According to the National Association of Insurance Commissioners (NAIC), your new potential insurance company may ask all of these questions as part of the underwriting process. You are also likely to be asked about the number of drivers in the policy, your driver's license information and the insurance coverage and limits you would like to purchase.
Take a look at your current auto insurance policy. Knowing what you have today will make it easier to create comparisons of apples to apples with the rates you get from different insurers. An easy way to do this is to study the page of your current policy statements, which describes the insurance you have, including the amount of coverage, as well as the coverage limits and the amount of your deductible. The more you know about your current coverage, the better buyer will be.
2. Shop around
Once you are familiar with your current policy, it is time to look for alternatives. A good first call is your current insurance agent or the insurance company itself (some insurers, such as Geico and Progressive, do not work with agents). If you are not satisfied with your existing policy (if you think premiums are too expensive, for example), ask if there are ways to reduce your rate for the same amount of coverage. You may be eligible to receive discounts you do not receive.
Here is a list of common discounts from the insurance company, according to the NAIC:
Have safety devices in the car, such as anti-theft features
Have a good driving record
Driving a low number of miles per year
Having multiple cars in the same policy
Being a student who gets good grades
Securing your home and car with the same provider
While reviewing the discounts, keep in mind that switching to a new supplier could affect the discounts you already have with other types of insurance. For example, if you are already getting a rate cut from your current owner and your current provider and you transfer your car insurance to another company, you can lose the discount you get for homeowners insurance. It may make more financial sense to stay where you are or change both policies to a new provider that will give you a rate reduction for both.
In addition to talking to your current agent or insurance company about your options, you can search online to research potential companies and get quotes. It is also a good idea to get referrals from family members, colleagues and others you trust. If they have had to file a claim with the insurer, they could tell you in person about their customer service experience.
If you are buying through an independent agent who represents several insurance companies, you can explain that, while you enjoy working with the agent, you would like to consult with other companies. Ask for a suggestion. A good agent should be able to offer customized options to meet your needs.
3. No Skimp in Coverage
As you get quotes, make sure the insurance coverage and deductibles mentioned are satisfactory. Just because a rate quote may be lower than what you are currently paying does not mean that it is a better deal if the coverage is missing. If you are not sure how much coverage you need, discuss your needs with representatives of insurance companies and ask for guidance.
For example, if you have significant assets, you may need more than the state minimum for bodily injury liability insurance. The same is true for property damage coverage. The retail price of an average new vehicle could easily exceed $ 30,000, but in many states the minimum damage coverage to the pro