Four Tips to Switching Car Insurance

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Four Steps to Switching Car Insurance
Plus, top-rated auto insurance companies 
Most drivers don't think much about their car insurance. If you've had the same auto insurance carrier for years and are happy with your rate, you probably don't see any reason to switch. When should you switch car insurance? Well, if you have to file a claim and your premium suddenly goes up, you might find yourself shopping for another company. Especially if the company you are with doesn't offer discounts for safe driving. Much like your cell phone provider, you may also just be cruising to always find the best rate for your needs. 

When it's time to switch insurance, there are lots of options today and it's easy to switch as long as you do your homework. Here's Lithia.com's Four Steps to Switching Car Insurance as well as a list of the top-rated auto insurance companies for 2021. 

Top Rated Car Insurance Companies

If your insurance company values you as a customer, they may be willing to fight hard to keep your business. Talk to your agent and let them know that you're in the market for a better deal. It could convince your existing insurer to match or beat rival car insurance quotes to keep you from switching car insurance.

Best Overall Scores

The following auto insurance companies hold the best overall scores by Bankrate and had the top ratings for Claims Satisfaction in 2020 according to J.D. Power and Associates. 
  • State Farm 
  • Geico 
  • Progressive 
  • Allstate 
  • Farmers 
  • The Hartford 
  • Amica 
  • Nationwide 
How much you can save?
According to Wallethub, the average annual insurance premium paid in the U.S. was $1,005 for state minimum insurance and $1,134 overall, as of 2017. Insurers commonly claim you'll save 10% to 20% by switching, which would represent savings of between $90 and $200 per year, based on those averages. However, some companies suggest more savings may be possible: 

  • Allstate has claimed an average savings of $400 a year, $473 if switching from GEICO. 
  • Progressive suggests that new customers may save an average of $550. 
  • 21st Century Insurance claims $474 a year in savings. 
  • GEICO famously claims 15 minutes could save you 15% or more on car insurance. 
  • State Farm claims potentially more than $500 in savings. 

Many variables can affect the quote that an insurance company gives you. One of these variables is certainly your credit score. In fact, insurance companies vary considerably in how they use your credit score to determine your rate. So, if your credit is just okay but not great, it is even more essential that you shop around for the right auto insurance company for you. 

In conclusion
No single insurance company will have the best rates for everyone, so not every shopper will save by switching to any particular company. However, you can save money by switching if you know what coverage you need and find the car insurance company that is the best match for you. You may even pick up such perks as roadside assistance or a lower deductible for a better rate than you had previously with your old carrier. 

Take your time, do your research, and you may be able to get better coverage and save considerable money each year on your car insurance.