Usually, auto dealerships offer free car insurance for a year or two upon purchasing a vehicle. But after this period, you actually have the freedom to look elsewhere for your auto insurance needs. We tend to keep the same carriers, but if we check other offers, there are plenty out there that are interesting and competitive. Here are some tips on how to compare them.
Compare more than just two insurance companies
Don’t just compare your existing carrier to a new one, put several companies under the microscope. Compare what they offer and the price rates as well. Be wary of unusually cheap offers as more often than not, there are plenty of exclusions with more affordable rates. Collate information first then compare.
Ensure that you are comparing companies on the same details
The primary purpose of comparing companies is to see which ones are competitive in price and service. If the details of the coverage you are studying aren’t the same, then opt for the company that has the least exclusions. Just make sure that you are comparing the same coverage so that you can have an accurate evaluation of the carriers.
Cheaper doesn’t necessarily mean better
Once you have chosen the four or five companies that you will compare, try to look for the odd one out in terms of pricing. Sometimes, if one or two companies are offering a much lower premium compared to other companies using the same coverage options, chances are, there are plenty of exclusions there. Figure out the difference so you can understand the reason why their offer is much cheaper.
Check out the carriers’ bonus services
Often, auto insurance companies will have extra services that give them an edge over the competition. Some have free towing services, while some have free gas delivery service in case you run out of gas. Each company tries to win over clients with these bonus features so try to look for these. They can be pretty impressive, but remember to look at the overall value of a carrier.