Benefits and Risks to Getting a New Car Insurer

Benefits and Risks to Getting a New Car Insurer

You have options when it comes to getting car insurance in Rhode Island. How do you determine what’s best for you? For many drivers, it comes down to cost. Everyone wants to pay affordable prices for their coverage. Some find those affordable prices by remaining with the same insurer year after year. Others switch carriers often. What are the benefits and risks of changing insurers?  

Many insurers reward loyalty. Staying with the same insurer might qualify you for savings they otherwise can’t get. Still, it won’t hurt to investigate other options in certain cases. 

Continuity Often Equals Affordability 

Insurance companies, car insurers among them, like to see customers come back. That often signifies the customer’s loyalty and satisfaction. As a result, customers who keep the same car insurance year over year often qualify for special perks.  

Many insurers award discounts to those who automatically renew their policy each term. That saves both parties a lot of work in the end. Furthermore, some insurers reduce rates for customers who receive services from them continually. That’s particularly true in the cases of customers who have few or no claims on their coverage. 

How Continuity Can Hurt You 

Still, staying with the same insurers might wind up costing you if you don’t pay attention to your rates. 

Insurance rates often increase over time. Often, everyone pays a little more every few years. Yet, in some cases, loyal customers still absorb a lot of these costs.  

Newer ways of measuring risks might drive your rates up, even if you have no claims. At this time, rate increases might actually outweigh the discounts available. Over time, you might find yourself paying more for the same policy. That is even if you have done nothing to trigger a significant hike.  

As a result, you might benefit from looking to another insurer to see if they offer better policy rates. Costs from different companies often vary, many considerably, based on your risk profile. You might find benefits and new discounts by periodically checking with other insurers. Based on changes in your driving record, age, vehicle and residence, you’ll might receive better rates elsewhere.  

You already might have a risk of paying more for your coverage. Therefore, stay vigilant. As your policy needs change, review your rates. If you start to get uncomfortable with any policy increases, don’t hesitate to contact your agent. They’ll help you investigate whether you can get a better rate for your car insurance.