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TwitterSeptember 12th, 2011
What are the consequences of switching to cheaper car insurance company? As in what would you lose out on?
Posted in car insurance 
Posted in car insurance
Often times, when consumers shop for auto insurance (especially online), they will not compare policies consistently. People will often reduce coverages to get better rates, without knowing what they are cutting. This also happens when contacting call centers of large direct insurers as the people answering are rarely licensed.
“Cheaper” auto insurance is not always a bad thing. Large companies may be more efficient than smaller ones, resulting in better rates. However, you often get what you pay for, and a lower premium will generally mean a lower level of service.
Go to a few agents in your area and have them compare their carriers for you. Make sure to review the quotes to confirm that all of the coverages are the same.
I can sell you a cheap policy, but it may not cover you properly.
Maybe nothing.
Some companies will transfer your loss free discount, or a renewal credit. Maybe the two policies won’t match for coverages, apples to apples. Maybe they have slightly different coverage forms.
You’d have to look at the two policy forms, and the exact coverages, to figure out IF there’s a difference.
You will lose out on whatever rewards your credit card company gives you for paying a large insurance bill with your credit card. That is the only thing that you will lose because the company is cheaper.
You may lose or gain other things for other reasons, but not because the company is cheaper.
First: There are many states that allow insurance companies to cancel you for one ticket, accident or infraction anytime within the first year you are insured with them. The longer you are with a company, the less likely you will be cancelled for infractions, tickets or accidents.
Second: When you are quoted that “cheaper” rate, it usually doesn’t include your credit history or motor vehicle report. When you renew, you’ll find out what the real price will be. By then, you may lose out on the discounts your prior carrier was giving you and if you go back to them, you may have to start over.
Finally: What are you giving up for that “cheaper” price? You need an agent who understands all the fine details of the policy language and what you are actually buying, not coverage limits, but coverage.
Nothing except for more money in your pocket. Of course make sure you have the same coverages.I;m an insurance agent and most of the time I can save people money sometimes even throw in more coverages as well.
I would check with a price comparison web site or with an insurance broker, who will check many different insurers for you to find you the best deal quick-ly and fast
i would have suggested getting “third party property damage only” type insurance, having it for a few years showing the insurance company that you don’t claimTHEN buying a more expensive vehicle. what I know some insurers would take your third party only insurance history into account and give you a discount on comprehensive.