Reader’s Question:

How can shopping make your car insurance very cheap? I thought car insurance companies uses the same system to determine your quotes.

Hannah

Dallas TX

It is always advised that shoppers should shop around for better deals with their car insurance rates as much as possible. If have time to do so every six months, then go ahead.

Car insurance providers usually file new rates with the state annually. Some do it 2-3 times in a year. This is the reason why if you shop today with a insurer the rate may be better or worse in 6 to 12 months. It is possible that the worse rate last year may be a better rate next year. This is the reason why car insurance shoppers are advised to get a very cheap car insurance. Also, car insurance companies do not have the same rating system that is why you need to shop and compare their prices.

It is also said that it is better to stay with the same company. Yes that is true because some insurance companies offer discounts for their long time customers. Insurance providers use your coverage history to determine the risk of insuring you, and they want to see you retain coverage before reconsidering how you are rated. Some insurers provide discounts for 6 months or more of continuous coverage. Even if you obtain a better discount with one insurer, it would still be best to find an insurance company that offers a very cheap car insurance rate than your current insurers.