Comparison shopping for auto insurance

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A nice overview article on shopping around for auto insurance on Money Central today:

Shopping for Auto Insurance

It has a good combination of topics:

  • Some tips to use
  • Some pitfalls to avoid
  • A list of risk factors that contribute to your premium
  • Brief explanations of the types of coverage you might get

One caveat that the article doesn't mention:

Will you still be protected if you have an accident, switch companies after the accident, and the people you collided with sue you after you switch?

Since I've gone through this (!) I know that the statute of limitations (in VA, anyway) for filing a lawsuit in this situation is two years.  Twenty-three months after I hit a couple, I get notice that I'm being sued.  I hadn't changed my auto insurance carrier, so there was never a lapse in my coverage, and hence they defended me in this matter.

But what if I had switched?  Would my old carrier defend me?  Would the new one?  I don't have the answer to this question — it may depend on the insurance carriers involved, or the state of residence.  (Any experts out there?)
That's water under the bridge for me now, but it might be useful to know the answer to this question for your particular situation if you get in an accident or have gotten into one recently.  You'd want to be sure that you're covered until the  day that the other parties can no longer sue you.  Being hit with a $75,000 lawsuit and having to cover your legal expenses out of pocket would quickly eat up any $200/year sayings you would get when you switched prematurely.

8 thoughts on “Comparison shopping for auto insurance”

  1. I am pretty sure that the company that insured you when the accident occurred, even if you switch, is still the one that will get involved because they're on the hook.

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  3. I agree with Jim, that legally they probably are on the hook. However, that doesn’t means they wouldn’t try to get out of it somehow.

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  4. Thank you for your nice post. It took me a while browsing through your blog and I liked this post particularly, I just subscribed to your RSS Feed and I think I need to add some more to your post here. If you’re looking for an auto insurance quotes, then you will find that there are many ways to finding the quote that’s worth the time to look into for your new auto Insurance company. Auto insurances can be found using the Internet or at an insurance agency. When you want a fast quote that’s free and affective, you should try using the Internet. There’s plenty of websites that can help you find a quote fast, but how can you tell if there accurate?

    Insurance quotes can be found on the Internet, but the question is : Are they true quotes? well, some can be an estimate that comes close to a monthly or a six month price of what you will be paying. However, when you go to their actual sight, they can help you through a live chat program to get you the quote you need in sounds.

    You will find that technology today can help us find easier ways to getting insurances we need that’s affordable or what we want. When you go to the actually website, you can get a better estimate on how much your insurance will be. To get a good estimate on an insurance quote, you can also call them.

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  5. Car insurance comparison is an effective way to influence your decision in choosing the right car insurance plan for your needs. Once you have that all done, ensure the company if the offers they have made are really feasible. Make sure to clarify everything before signing the car insurance contract.

    Reply

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