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RANCHO CUCAMONGA, CA, May 06, 2010 /24-7PressRelease/ -- There are many motorists who have a tendency of purchasing a car insurance policy and continuing the renewal coverage without reviewing their policy or comparing their current premium to the rates of other insurers. In many cases, the insured may be able to find more affordable coverage elsewhere, change deductibles or eliminate protection that is no longer needed and reduce premiums.
The marketplace for automobile coverage is constantly changing and this may be an area where consumers can benefit. Insurers must compete against each other in order to secure new or existing customers and need to have rates competitively priced in order to obtain or keep policyholders. Completing an auto insurance comparison can help a consumer determine whether their provider is the most affordable or if a better deal can be offered by another company.
Consumers should be aware that deductibles have a direct effect on premiums and it may be a good idea for a policyholder to see if they have chosen an amount that suits them best. The amount of a deductible is usually in the amount of $250, $500 or $1,000; if a motorist currently has a $250 deductible then raising it to $1,000 may lead to a considerably lower premium, but before doing so the insured should be sure that they can afford to pay the amount chosen in the event of a claim.
In addition, a motorist may have been in need of comprehensive and collision at the time they purchased the policy, but due to depreciation this may no longer be the case. It is often suggested that if the annual premium and the deductible exceed the value of the insured vehicle than it is time to drop protection from physical damage. The South Carolina Department of Insurance suggests, "On cars with a market value less than $1,000, consider carrying only liability coverage."
Revisiting policies and comparing rates is a good way to make sure that the best price is always paid for coverage. Motorists can visit http://www.onlineautoinsurance.com/compare/ and obtain free quotes based on different levels of protection and deductible amounts from various companies to ensure that they are paying a reasonable amount for their policy.
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