Comparison Shopping For Insurance Is A Must!

By Author: Marcus Stalder
Total Articles: 491
Comment this article

When buying different things like a new TV set or a fridge do you tend to shop around for the best price at different stores? Or you just head on to the nearest one and buy things you need without even bothering to check the prices at other places? If you're a part of the first group of customers then there's really no sense in explaining the important of insurance comparison shopping to you. However, if you tend to proceed like the second group of people then there's a firm need in explaining some basic benefits of comparison shopping, especially if you want to save some money on insurance. So, why is insurance comparison shopping so important?

A lot of people tend to think that insurance companies all set the same rates for all drivers and there's no real sense in shopping around since you'll get the same rates everywhere. If you had spent some time on any kind of insurance shopping, whether for home or health insurance, you have definitely observed that all companies use different methods of calculating their rates and it's impossible to get two identical quotes from two companies. Even if the difference will be small, ...
... it's wrong to say that the rates are identical. Each company has different claim statistics and quote calculation methods, which leads to different result when quoting across providers. And that's exactly what you should aim for with comparison shopping.

In terms of car insurance comparison shopping means getting quotes form different provides. In insurance, quotes are the same as price tags in supermarkets, with the only difference in that every quote is given to you individually as if there were individual price tags for every customer in the supermarket. That's because each person poses a different grade of risk and insurance companies use risk as the main factor that determines car insurance rates. And what you want to do is to find a company that regards you as a low risk driver and rates you respectively.

Shopping around for car insurance isn't complicated at all. Just like ordinary comparison shopping we tend to do online these days, you can easily get multiple quotes from different insurance companies online. The rule of thumb is getting as many quotes as possible because this way the chance of getting a competitive policy is much higher. Just make sure that you're getting your quotes from companies that are license to operate in your state. Otherwise there's no sense in getting a quote from a provider that won't be able to cover you in your area.

So, hopefully, now you understand why shopping around for car insurance is important. If you find your current insurance costs a bit higher than you would want them to be then there's no better way to get the right policy then doing some comparison shopping. You may be really surprised to find out how much money you can actually save with a little shopping around and it's really simple these days with the multiple online services offering free insurance quote comparison.