Paying Too Much for Car Insurance? How To Find the Best Company for You
Written by
Brooke Barley
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Amber Barkley
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Your car insurance payment is probably just another bill at this point. But, maybe you’ve taken a look recently and thought the number might have gone up. You’d be right. According to CarInsurance.com, 57% of drivers said their carrier increased their car insurance rates in the past 12 months.
Not loving the price increase? You don’t have to stick with your current carrier just because you’ve been with them for a long time. Here’s how to find the best car insurance company that fits your needs and your budget.
Should You Do a Comparison Price Check Every Year?
Maybe you thought that once you found a car insurance company, you were set for life. However, consumer advocate and insurance industry expert Jeff Arnold says comparison shopping is a must in the car insurance game.
“An annual review is a wonderful practice to engage in, either with an agent or by yourself by calling your insurance company and asking if there are any other discounts you qualify for,” Arnold said. “It is always good to keep your insurance company honest by checking their rates with competitors.”
How Much Can You Save by Switching Car Insurance?
There’s no hard fast number you’re guaranteed to save, but Arnold said that yearly price comparisons might be able to save you quite a bit. “It is not uncommon to save 5% to 20% by switching.”
Arnold recommended going to websites like rightrater.com or getjerry.com to get a quote without impacting your credit score or alerting your current carrier that you are shopping.
Besides Every Year, When Else Should You Look Into Getting New Car Insurance?
Certain life events call for you to check how much you’re paying for car insurance — and if there’s a better deal out there. Arnold says to price-check whenever you have a milestone event, which could be marriage, divorce, high school or college graduation, or becoming a new homeowner.
Your age also has an impact on how much you pay and might be a reason to switch insurers. “When people reach the age of 25, they are considered more mature drivers and can likely find better rates if they shop around upon their next renewal period,” said Paul Boudreau, an insurance broker at Rowat Insurance.
Additionally, Arnold also said that when you get a new job that requires significantly less commute time for you, or if you now work from home, you might be able to get a better deal on your insurance, because you’re driving less.
What Should You Look For in a Car Insurance Company?
Barry P. Goldberg, a car accident lawyer, says there are a few green flags you should look for when you sign up with a car insurance company. “Choose a company with strong financial stability. This ensures that the insurer has the financial resources to pay out claims, especially in the case of major accidents or widespread incidents.”
Goldberg also said to keep an eye on how they handle claims. “Read reviews or ask for recommendations from people who have filed claims with different insurers. A company that simplifies and expedites the claims process can be a significant advantage.” Goldberg said that good customer service is always an advantage, as well.
Is There One Insurance Company That Is Better Than All the Rest?
When asked if there is an insurance company that will always get you the lowest price, Boudreau said it takes a little bit more research than that. “The best car insurance company can vary by situation. Many times when advising clients, their driving record, age and car will influence which rates are offered by various companies.”
The best insurance company will be the one that’s lowest for you based on your unique circumstances like location, age and driving record.
Always Read the Fine Print
Goldberg said that it’s important to know exactly what you’re signing up for. “Carefully review the policy terms and conditions, including any exclusions or limitations. Ensure you understand what is covered and under what circumstances.”
He also said to look for a company that has very transparent pricing and explanations. “Avoid insurers that offer unrealistically low rates, as they might skimp on coverage.”
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