Car Insurance Comparison – Beginners Guide

Comparing car insurance quotes is an absolute must for all car owners who want to get the best bang for the buck. This website was built to show you why it is important for you to shop around for the best deals rather than renew your policy year after year with the same provider, teach you how you can get the best quotes and provide you with a handful of insightful links as well as our recommendations on some of the top insurers on today’s market.

So why should you compare quotes? Let’s have a look at some reasons.

Rates vary from one provider to another

It’s a free market. Service providers are allowed to set their own prices, no matter how high or low, and the supply versus demand mechanism doesn’t always make all players on a market align their rates. Moreover, an insurer with higher rates may be more trustworthy than one who has just entered the market and offers extremely cheap packages just to acquire a portfolio of customers.

Different buyers get different rates

Two customers living in the same area and driving very similar cars might get substantially different quotes from the same insurance company. Insurance carriers take a wide range of factors into account when deciding on the amount they are going to charge a certain driver. These include, but are not limited to, age, marital status, gender, driving history or FICO score. Then comes another set of discounts that buyers might be eligible for. It is not out of this world, for instance, for two neighbors of the same age who drive the exact same make and model of a car and work for the same company to get substantially different quotes for the same coverage – it could be, for example, that one of them is a member of an auto club that offers 15% discount on Collision insurance and free towing coverage.

Insurance companies change their rates frequently

In a highly competitive market companies have to match and exceed what their competitors are offering. When Allstate first came with their “accident forgiveness program” all other major players soon began to offer similar packages. Whoever closed a deal with Allstate the moment they introduced the program got a great deal for the first year, but soon thereafter there wasn’t much of a difference on the market.

Your insurance needs change

Sooner or later you will need to change your insurance package. Just because a company offered you the best deal once, it doesn’t mean that they will always have the best quote. Factors that may change your coverage needs are in the range of:

• you get married or divorced;
• you buy another car or sell one;
• your yearly mileage changes;
• you pass a certain age milestone;
• you add or remove a driver from your policy;
• you lose your job and can no longer afford to pay a hefty bill.

Shopping around for the best deals whenever such an event occurs will help you optimize your spendings.