Is It Important to Shop Around for Auto Insurance Regularly?

As a vehicle owner in India, insurance is a mandatory norm besides the usual registration, PUC of your vehicle and carrying a driving license. The Motor Vehicles Act of 1988 lays down this legal requirement and hence, no vehicle owner must skip…

Are you convinced that you own the right car insurance? Does it provide you with enough of coverage? Is it the best priced deal?

It is very common to most of the car insurance policy holders to feel complacency with the coverage. It reminds me of those who could not take eyes off their painting or are lost in words while praising their poems. People always tend to suffer from a lingering feel of satisfaction with whatever they have, buy or create. One of the reasons for such behavioral pattern is they don’t look around.

Auto Insurance Regularly

Most of the motorists overlook importance of comparison when it comes to car insurance policy shopping. If you spend time to compare the deals available, it is more likely that you will discover some car insurances policies offering more coverage or the same amount of coverage at cheaper prices. In either of the cases, you just end up being a loser. Just like anything in this world, you should compare the coverage as well as pricing in order to get the best deal.

Do you need a different auto insurance policy?

It is more likely that the amount and type of coverage that you required at the time of buying an auto insurance policy have changed over time. There is a strong difference between a house and a car. The value of your home appreciates over time but that is not the case with your car. The older the car, lesser it is valued. And if you have purchased your car on loan, you might not require the same level of coverage once payment is made in full.

By switching to a policy providing less coverage, you can save a great deal of money on your car insurance policy.  The same applies to your health insurance policies as these also need a change. Whether it is your health insurance or car insurance policy, it needs a revisit from time to time in order to make sure that they serve your purpose for now and in immediate future. In fact, shopping around a year could give you multiple benefits.

And it is never mandatory to stick with your present company when you have decided for a change. Shop around if you can get more benefits from other companies. If you find one, go in favor of switching insurer.

Consult with your agent

Even if you are represented by an agent, you should shop around in search of the best deal and insurance provider. However, you must not go for an immediate switch after finding a better deal, especially if you are happy with your present insurer’s customer care service. Talk to your agent freely and tell him about the better deals you have found out. The agent may successfully negotiate with your insurance company to thrash out a deal that matches your price point and gives coverage that you have wanted.

If he can do this, it will be better for you not to change the company. However, if the company refuses to lower insurance premium or give adequate coverage, it is high time to change sides.

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DollarBreeders is a personal finance blog dedicated to people who want to take control of their finances and secure their future. Here you will find personal stories to inspire you to make better and more informed financial decisions. We aim to help people understand personal finances better and meet the challenge of living comfortably within the budget.