We are exposed repeatedly to ads on TV and newspapers from insurance companies promising to save by switching our auto insurance policies to them. It is important for the insurance consumers to understand the rationales behind these ads and how to deal with them when it comes to considering switching, if switching is worth it after all.

 Do people really save when you switch? In an article titled 'Save on car insurance, How to find the right policy that will pay when you need it most'  of the  October 2010 of the Consumer Reports magazine, only 14 percent of 4,500 ConsumerReports.org subscribers who compared premiums found that they would save money by switching insurers. When a promise is made to give you 40% discount on your insurance, that promise may be meaningless if that company's original premium is $2,000 and then will be discounted to $1,200 after a discount of $800; when another similarly rated company gives you similar policy for $950 without any discount. Insurance consumers needs to be concerned about the bottom line- the final premium of the policy. A company that is eager to enter a particular geographical area, or to reach a certain class of operators may advertise and offer significant low prices, to raise them in 6 months after you purchase the policy.

 Most companies review their policies, and will adjust your premiums according to your credit (if credit got worse your premium would be higher), driving record, and CLUE reports (shows comprehensive losses made against your policies). If your present company raised your premium or you feel that you were paying too much compared to other people with similar backgrounds, then shopping and switching car insurance might really be worth it.

 Insurance Companies Vs Insurance Agencies: Most advertisers are insurance companies advertising their own auto insurance plans. Insurance companies compete with each others by price and by policy differentiation. Dealing with a particular company may or may not save you money. To shop with many individual companies may become tedious and time consuming task. Many great companies such as the Hartford, the Travelers, Auto Owners, Safeco, Progressive, rely on independent insurance agencies to market their insurance policies. Medium to large independent insurance agencies use automated systems to get simultaneous  multiple quotes with many companies, hence saving consumers lots of time and effort. Dealing with an independent agent surely enhances the outcomes of your shopping. An insurance company representative will give you the best of what his or her company offers while an independent agent will give you the best offering from many insurance companies.

 Saving wisely  on your auto insurance requires good understanding of your policy. Understanding the coverages and limits is very important because the premiums of different policies should be compared based on similar coverages and limits (comparing apples to apples). For example, if you are paying $800 every six months for your current policy that has a basic liability limits of 20/40/15, and another quote with comparable company is $810 for six months but for a higher limits of 100/300/50 on liability, then it will make sense to switch  to the new company with the higher premium because there is significant betterment in your auto coverage. Automobile Assurance has to be combined with quality insurance too for everything to make sense.

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