Comparison Shopping is Forcing Car Insurance Companies to Cut Rates

Car insurance marketing tells us that we can lower our auto insurance rates with minimal effort: "Just fifteen minutes can save you a ton on your car insurance," the saying goes. Here at carinsurancerates.com, our mantra has been that you can save a lot of money by spending a little time, or a lot more money by spending a little more time - the choice is yours. But we’ve also said that you’re never going to save on your car insurance unless you try. Well, it turns out that we may have been wrong.

Car Insurance Companies Are Competing For You

The internet changed the old car insurance paradigm, in which you (the consumer) had little power or information, and they (the insurance agent) had lots of both. Now, with web sites like carinsurancerates.com, every customer who walks through an insurance agent’s door is a potential car insurance expert, which means that agents have to take customers more seriously. What’s more, consumers are no longer limited by geographic constraints and the nationwide competition among car insurance vendors has pushed prices down even further.

The traditional "big boys" like State Farm are falling behind, and thus, they are cutting rates in order to hopefully (from their perspective) discourage people from shopping around and getting even lower rates. Chances are that the other major players in the car insurance world will follow suit, as Progressive’s CEO recently commented, "We need to make sure that we don’t lose customers to competitors at a price we would be comfortable with."

So Should You Just Sit Back and Wait to Save?

Maybe if you’re Donald Trump, you can afford to sit back and wait to save, (then again, according to Rosie O’Donnel, maybe "The Donald" could use the extra money!), but pretty much everyone else needs to realize why the car insurance companies are lowering their rates - in order to discourage you from doing comparison shopping! They know you can save even more money by shopping around online, so they’re trying to bribe you not to do it. Don’t fall for their tricks! It’s great if State Farm cuts your rates by 10 percent, but if you can save 20 percent while simultaneously increasing your coverage, isn’t that worth fifteen minutes of your time? I think so.
The cost of car insurance, like most other products and services, will go up over time. The internet has introduced deflationary pressures that have driven down the costs to consumers, but they can only fall so far before they have to start coming up again with general inflation. After all, cars still get damaged and repairs aren’t getting any cheaper. Worst of all, health care costs are embedded in car insurance premiums, since car insurance covers bodily injury damages and medical bills. Therefore, it is unwise to sit around and wait for your savings to come to you - you need to grab your savings while you can. With our free quote system, carinsurancerates.com is the best place to start!