The first hidden cost you must consider is the level of coverage your new car insurance provider will give you. Is it the same car insurance coverage as your old car insurance provider? Do you have the same car insurance limits? If you are getting lower limits and less coverage, it may not be the best idea to switch car insurance carriers. If you are getting the same coverage and limits or better yet more coverage and higher limits, you may be ready for a switch but there are a few more hidden costs to consider.
The second hidden cost is a premium rate increase in the event of a car accident. Some car insurance carriers have an “accident forgiveness” program to reward customers that have been with their company for a length of time. With this program, car insurance providers will not increase your car insurance premium in the event of a car accident that is your fault. If you switch to a new car insurance provider, you may lose your car accident forgiveness. If you are a safe driver, this may not matter much to you.
The final hidden cost you must consider is the integrity of the new car insurance company. If you get into an accident, will they pay out? Will they fight with you the entire time? Will they drop you? Getting into a car accident isn’t fun and it can be made into a bigger hassle by an uncooperative insurance carrier. Ask around and Google your potential new provider. If there are complaints out there, you can find them easily with the help of Google.
Now that you have done your homework and compared car insurance providers, you are ready to switch!

Car Insurance

Car insurance customers most likely to shop around by Allstate’s definition are car insurance customers with average credit scores (not high scores or low scores) or customers with multiple cars and a recent teenage driver addition. Teenage drivers tend to cause a sharp increase in car insurance rates which increases the probability that the car insurance policy holder will shop around for better rates.

Allstate is doubling the existing discount it offers to young drivers shopping for car insurance on their own for the first time with parents that have good driving records.

Allstate hopes this rate decrease will make them more competitive in Illinois with their competitors. Allstate has been hammered by the economy. Allstate has steadily lost car insurance policy holders since the beginning of the downturn. Allstate’s stock price has plummeted 52% ($17.13 per share) year to date.

CEO Thomas Wilson acknowledged car insurance from Allstate isn’t as cheap as its competitors. In an effort to change that, Allstate has decided to increase car insurance rates 3% for longtime customers (go figure).

If you are one of those lucky few, it may be time to shop for car insurance.

Car Insurance

Car insurance companies can be difficult to work with so it helps to be prepared. While no one plans to have a car accident, there are a few steps you can take to help you navigate the car insurance process.

1. Carry your driver’s license and car insurance card on you at all times. You should also place an additional car insurance card in your car just in case you are not driving. The police officer at the scene of the accident will require both of these.
2. Carry your car insurance carrier’s contact information in case it is needed.
3. Place an emergency first aid kit in your trunk just in case you can use it before paramedics arrive.
4. In your glove compartment, it may be beneficial to have road flares. I know this sounds useless but in the rare event you wreck into a ditch at night, you may be able to signal for help with flares.
5. Don’t forget the most important item, a cell phone.
6. If your cell phone does not have a camera, you will need a disposable camera. Pictures will help you prove it was not your fault to the car insurance company. The car insurance company can’t visualize the car accident like you can.

This list isn’t all encompassing but should be the basics to help you work with your car insurance company.

Car Insurance