TOP 10 REASONS TO SHOP FOR INSURANCE QUOTES

1. Insurance companies use different pricing formulas and charge significantly different rates based on the same information.

Insurance companies use complicated algorithms, resulting in different rate quotes from each one. In addition to your driving history, there are so many factors that determine your car insurance rate. The following can increase or decrease your rate:

• Vehicle Information
• Driving Experience
• Gender
• Zip Code
• Employment
• Education Level/Professional Discounts
• Home Ownership

2. Insurance companies often assume you’ll pay a higher rate if you’ve been with them for a long time.

If you have not changed your address or job in a while, your insurer may raise your rate assuming you won’t make a life change by switching carriers. This practice is called price optimization and it’s very real. Often, your rate goes up incrementally, but sometimes it goes up dramatically, even without any accidents or traffic violations. Therefore, it’s always worth comparing quotes with other companies.

3. You bought a new car.

The type of car you drive plays a very big part in how much you pay for insurance. If you have recently bought a new or used car, chances are you’ll be paying a different rate on it than the car you used to drive. To receive a lower premium, choose a car that has high safety ratings. You’ll also want to shop around for several quotes because different carriers rate the same car differently.

4. Changing your job or address will change your rate.

While you may not want to make yet another change in your life, the ones you’ve already made will most likely affect your insurance rate. Since you’re going to need a new quote, you may as well get a comparison quote of many insurers’ rates to see who gives you a better price for the same coverage.

5. Your credit score recently went up or down.

You may not realize it, but insurance companies do look at your credit score in many states. Some do it with more emphasis than others. Your credit score may have dropped because you were shopping for a mortgage or you opened a new credit card. Or, you may have gone heavily into debt. On the other spectrum, you may have paid off old debts and cleaned up your credit record. These are all reasons to shop around for a new rate. If you’re a good driver but your credit score has bottomed out, find a company that weighs other factors more heavily than credit.

6. Your teen just got their license.

You may be happy with your rate now, but once it’s time to put a teen on your policy, your rate will most likely increase exponentially. Again, different carriers have different rates for young drivers, so it’s a good idea to shop around when that stressful day comes.

7. You bought a home, motorcycle or RV.

Most insurance companies have multi-policy discounts, but not all of them are equal. You may find that you’re saving hundreds by bundling your policies after shopping around for the right insurer. You may even end up with better coverage than what you started off with after switching.

8. You have a minor traffic violation or minor accident on your record.

Let’s say you get a speeding ticket or a citation for not coming to a complete stop at a stop sign. Your insurance company will most likely raise your rate unless you go to traffic school. The same goes for fender benders. If you’ve had a very minor accident or traffic violation, shop around for a company that will not penalize you as much as your existing carrier might.

9. You got married.

On average, married people have lower rates than single people, but how many newlyweds take the time to revisit their insurance policy? Most people pay for their insurance and forget about it. When you see an opportunity for a discount on your rate, take it. That often means shopping around to get the best quote.

10. Just a few minutes could save you hundreds.

Granted, getting 10 or so quotes will probably take you hours, but if you work with a reputable agency like AIS, an agent will do all the footwork for you. They will match up your insurance needs with the best prices and coverage available. Really, you may not even realize how much you’re overpaying until you shop!