Could Auto Insurance Loyalty Cost You?

When was the last time you switched auto insurance carriers or just simply just shopped around? Jeffrey Gibson, a 45-year-old retail consultant from Yonkers, New York could have saved a lot by just simply shopping around. Gibson was paying $3,390 annually on his 2004 Nissan Maxima before totaling out the vehicle in 2010. After shopping for a replacement vehicle online, Gibson stumbled across a State Farm ad.  After making connections with them, State Farm was able to shave-off approximately $1,241 annually on the 2009 Infiniti M35 he purchased, bringing his premium down to $2,148 annually.

Ironically, prior to Gibson replacing his Maxima, he had been with the same carrier, Geico, since inheriting a car from his late father’s car in 1994.

According to J. D. Power 2011 U. S. National Auto Insurance Study reveals that Gibson is not alone when it comes to changing carriers. Only 13 percent of customers switched carriers over the past 12 months. Now while we're not endorsing one insurance carrier over another, we do recommend that you shop carriers to make sure the price you're paying is inline with the competition.

To find out the other myths and realities of auto insurance shared by the editor of JeffCars.com, pick up April's copy of Black Enterprise Magazine.