Wednesday, June 16, 2010 9:41:40 AM

If I switch auto insurance companies, will I have to pay more?

Auto insurance companies offer a variety of discounts, such as being a good driver, having safety features, driving low miles, and even being a loyal customer.Insurers want to keep your business and may reward you for keeping your policy with them for a year or more. Some offer an additional discount for insuring multiple vehicles.

Though being a loyal customer may make you eligible for a discount, you may still come out ahead by switching insurance companies. The best way to know what's most affordable for you is to shop auto insurance on an annual basis to make sure you're not paying too much.

If you do switch insurance companies, buy your new coverage first and then cancel your previous policy. That will make sure you don't have any gaps in your auto insurance coverage.

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Laura Adams is a personal finance expert and award-winning author who is Senior Insurance Analyst for She represents Bankrate Insurance’s web properties in the media and works as an advocate to make sure consumers protect their financial futures by having the right kinds of insurance.

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