TheStreet emphasizes the importance of selecting top-quality products and services. Purchases made through their links may yield commissions. While renewing an existing insurance policy is convenient, it might not be cost-effective. There’s potential to save money by exploring different insurance options rather than settling for the first quote received.
Research by CarInsurance.com indicates that annual rates for individuals with good credit can vary significantly between $1,381 and $2,509, depending on the provider—an over $1,100 difference. Howard Goldberg, vice president at Plymouth Rock Assurance, recommends seeking multiple opinions to ensure the most suitable insurance coverage.
Unexpected fees and exclusions can result in higher final policy costs than initially quoted. Common fees might include installment, credit card, broker fees, and unnecessary riders like accidental death coverage. Consumers unable to pay annual premiums upfront should prioritize carriers offering fee-free payment plans and avoid paying redundant fees. Policies with exclusions may not cover certain claims, such as those involving unnamed or unlicensed drivers, business-related vehicle use, custom vehicle parts, or travel outside the U.S. It’s essential for individuals with unique circumstances, like custom vehicles or frequent international travel, to ensure their quotes cover necessary conditions.
The initial quote serves as a benchmark for evaluating other offers. Stothard Deal of TransUnion advises that a significant difference between new quotes and current rates suggests the opportunity for savings through shopping around. As consumers compare quotes, they should consider premium costs, coverage limits (liability, comprehensive, and collision), deductibles, and potential discounts. Consistency in provided driver and vehicle information is key, as is verifying that coverage limits and discount opportunities are equitable across quotes.
For a professional approach to car insurance shopping, online calculators can provide rough cost estimates, which become more precise with detailed personal information. Car insurance comparison websites offer links to insurer sites for final quotes. Alternatively, independent insurance agents can compile quotes from multiple companies, although it’s important to inquire about broker fees beforehand. Even after securing coverage, it’s wise to periodically review quotes, especially when significant changes occur, such as relocating or acquiring a new vehicle.
