Insurance is one of the most competitive industries out there, with advertising budgets for all lines of business measuring into the billions. Yes, you constantly see advertising ranging from billboards to TV commercials hawking every type of coverage conceivable. Many of these advertisements are touting how much money you can save if you switch providers, but what is the truth behind these savings?

AOL has a recent article that talks about this very subject, shedding some light on the topic. After all, is it really possible to save hundreds of dollars by switching companies? And if you switch enough, will these insurance providers eventually start paying you to make the switch since you are savings hundreds of dollars every time you take your business elsewhere? As if!

So, you know how auto insurance ads say that you should get an insurance quote from such-and-such company because you stand to save hundreds of dollars a year in premiums? The way it usually works is that the advertising company only reports the average amount people saved for those who actually switched. They don’t include those that got an insurance quote and decided to not go with that particular provider.

Think about it. If these advertisements included the average savings amount of all those that got a quote, the number would not be as impressive. There will be many people who get an auto insurance quote and choose to stick with what they already have, or look elsewhere, because the rate they were quoted is not low enough to entice them to switch, or there is something about a particular company that they don’t like.

No matter what type of insurance quotes you are looking for, whether they be RV insurance quotes, auto insurance quotes, homeowners insurance quotes, or a family health insurance quote, you need to consider more than just the bottom line price. You have to look at the company offering you the coverage. Are they reputable? Are they financially stable? Do they have a good reputation? Do they have a satisfactory claims handling process? You definitely should shop around for insurance coverage, but you also need to buy the right coverage from the right company so that you aren’t sorry if you actually have to use your policy.

There are some things that you should consider in order to lower your current insurance premiums. You can raise your deductible, which generally results in a lower monthly (or annual) premium. This is because you are taking on more of the risk yourself, and your insurance carrier will not have to make a claims payment until damages reach a certain level. This can dramatically reduce your insurance premiums if you go with a high deductible on your insurance policy.

Many insurance providers today are offering a multi-policy discount. This means that if you have multiple insurance policies with one company, they will reward you with a premium discount. For example, you may have your auto and home insurance policies with one company, resulting in a discount.

Also, keep in mind that your claims history has a direct correlation to the amount you will pay in insurance. If you make a lot of claims, not only do you run the risk of having your current policy non-renewed, but you will find it may be hard to get a replacement policy. Insurance claims are held in a national database, so every insurance company has access to your claims history. There is not hiding from your past in this case.

By all means, shop around to find the right coverage at the best price. Just be aware of the marketing tactics that companies use in the ultra-competitive insurance industry. Shop with your eyes open and be an educated consumer so that you don’t get taken in the end.

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