Is It Worth Staying with the Same Car Insurance?
Is sticking with the same car insurance worthwhile? In this article, we’ll give you the pros and cons.
Car insuranceCar insurance has become crucial for every car owner. Insurance can cost a fair bit, and like all other things we want to get the best deal available in our budget. Moreover, being able to purchase insurance online has made the entire process easy and the options to choose from endless. With this accessibility, one question that arises often is whether one should stick to the same insurance or change it whenever a better deal appears. In this article we will give you the answers you are looking for:
Are There Any Benefits to Sticking to the Same Car Insurance?
Depending on your policy there are a variety of benefits that insurance providers give to policyholders who stick with the same policy for a longer period. Usually these rewards are linked to the period that you have renewed the same insurance and can increase further with time. The following are some of the perks your insurance providers may offer you for your loyalty:
Hidden Costs Removed: Purchasing a new insurance plan comes with a number of expenses that are explicitly mentioned in the estimates. Renewing an existing policy reduces these hidden costs.
No Claim Bonus: In an own-damage type cover the insurance providers offer a reward called No Claim Bonus for a claim free year and the rate of this reward increases every year going up to 50% in the 6th claim free year.
Are There Any Downsides to Sticking to the Same Car Insurance?
You May Be Paying More: Renewing an existing policy is the most hassle-free way to keep up your insurance. The premium may stay more or less the same. However, when you do not compare the policy to others at the time of renewal, you may be losing out on great deals that are available at the time.
You Miss Out On Discounts: For limited periods of time, many insurance companies often offer the similar policies for a discounted price. If you choose to renew your policy without checking others you lose out on them.
Policies Are Often Modified: Insurance companies often modify their policies annually. These small changes can make a huge difference for you. Hence, you must be mindful when renewing that your existing policy is still the best one for you.
Takeaway
In a nutshell, staying with the same insurance provider and policy comes with its pros and cons. What is better for you depends on your situation. On the one hand, staying with the same policy has a number of benefits. On the other hand, you often miss out on equally good bargains by sticking to the same policy. Whatever you choose to do, it is advised to check and compare other policies before simply renewing the existing one. Click here to check Car Insurance Quotes.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
