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February 19, 2024

"Saving money" when switching car insurance - Let's take a closer look...

In the world of car insurance, you'll often hear the promise, "Switch and Save!" It's a tempting proposition of lower premiums and better coverage with just a simple insurance provider change. But is it really that straightforward? Maybe not.

Let’s explore the concept and why switching doesn't always equate to saving money.

Introductory discounts vs. long-term costs
Many insurance companies dangle attractive introductory discounts to lure new customers. These discounts may indeed result in lower premiums initially. However, it's crucial to grasp the long-term costs. Once the introductory period ends, premiums could surge, nullifying any initial savings and potentially even costing more in the long run.

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Apples to oranges comparisons
Insurance companies often tout significant savings by comparing their rates to those of competitors. In this case, it's essential to recognize that not all policies are equal. A lower premium might mean sacrificing crucial coverage or accepting higher deductibles, leaving you unprotected or under-protected in the event of an accident.

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Loss of loyalty benefits
Loyalty to an insurance company can have its perks. Over time, you may become eligible for loyalty discounts, accident forgiveness programs, or other benefits that reward you for being a long-term customer. When switching insurance providers, these benefits are typically lost, potentially offsetting any savings gained through lower premiums.

Underestimating personal circumstances
Life evolves, and so do insurance requirements. What might have been the most economical choice a few years back may no longer be the optimal policy today. Factors like changes in driving patterns, vehicle type, location, or even credit score can significantly influence insurance premiums. Prior to switching providers, it's vital to reevaluate your insurance needs and seek quotes that align with your current circumstances.

Changing car insurance is more complex than signing a new policy. Still, if it's time to change your plan or you're ready to choose another carrier, the Roehr Insurance team can help. We work with the leading car insurance companies and can ensure that it's beneficial from day one when you make a switch.

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