Importance of car insurance comparison

When we buy car insurance, most of us would go to our trusted car insurance agent.  We buy from the same insurance company every year, even if our car insurance rate has gone up year after year.  It’s about time we exercise consumer right and do some car insurance comparison.  If we were to compare car insurance quotes off line, that may involve many phone calls and lots of time, which may be why we haven’t shopped around in the first place.\r\n\r\nNow we can save up to hundreds of dollars by going to car insurance comparison websites.  There are many of these now, and it compares car insurance quotes within minutes for you.  The one that I went to recently to renew my car insurance was able to pull up car insurance quotes from 5 insurance companies all on the same screen.  The insurance quotes are all based on the exact coverage I input, so I am comparing apples to apples.  You can see what each of the insurance company is rated by A.M. Best, which tells you the financial stability of it and is a good measure in today’s economy.\r\n\r\nWhat surprised me what the range of quotes I received from this car insurance comparison website.  I thought the different car insurance quotes will come in within 5% to 10% of each other.  But there was a  $500 difference between the lowest and highest quotes.  I did not automatically choose the lowest insurance quote listed.  I also looked at the insurance company and its reputation and its size.  Most of the insurance companies that showed up in the car insurance comparison was reputable national insurance companies.  However, the insurance company with the cheapest quote was not a company that I recognized.  I ended up not choosing this company and went for another with the second lowest quote.  That still saved me close to $350 in my car insurance for the year.\r\n\r\nObviously that was a very worthwhile exercise for me.  Different insurance companies can give you different insurance rates on your car not because they offer different levels of service.  Each one factors in your personal data differently.  For example, one insurance company may consider good driving record more so than another company.  While another one may penalize young age drivers more than any other insurance companies.  Because of this, depending on your own demographics and circumstances, you will get different rates from difference insurance companies.  Everyone should do car insurance comparison, and since doing it online is so much easier, I vote for online car insurance comparison.

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