Over Half of All Drivers Miss Out on This Easy Insurance Savings Opportunity

Most drivers probably wouldn't mind saving money on auto insurance. So it's surprising how many aren't taking advantage of an opportunity to do just that.

Over half (52%) of drivers rarely or never shop around for a new insurance policy. That's according to a recent car insurance survey by The Motley Fool Motley Fool Money. Another 22% say they only do it every two to three years.

It's widely recommended that drivers shop for auto insurance every year. If you're one of the many who don't, here's why it's important and how you can do it in a matter of minutes.

Why you should shop for auto insurance every year

The main reason to shop for new auto insurance every year is because it could save you money. Rates can vary quite a bit by carrier. In a recent ranking of insurance companies, average monthly rates ranged from $87 to $178 for 10 of the most popular providers. By comparing your options, you can see if you're getting the lowest price on your insurance policy.

Your current car insurance company might even charge you more if you don't shop around. That's because of a frustrating practice called price optimization. In states that allow this, insurance companies can charge you more if they don't think you're likely to comparison shop. Yes, your carrier could actually raise your rates for being loyal.

The cheapest car insurance companies for you could also change as your life changes. For example, some carriers offer much larger discounts for drivers with excellent credit. Others are more forgiving about raising rates after an accident.

Along with saving money, shopping around is an opportunity to compare your policy options. You might find there's a policy that better fits your needs. If you have an older car, maybe you decide to reduce your coverage. Or if you have plenty of money in your savings account, you could opt for a higher deductible to lower your premiums.

How to compare car insurance rates

It doesn't take long to shop around for auto insurance. You can do it all online and get car insurance quotes from various companies.

There are a couple of ways to do this. You could pick out a few of the best car insurance companies and visit each of their websites to pull up a quote. This may be the way to go if you're interested in specific carriers.

But the faster option is to use a car insurance comparison tool. Plug in some basic information, including your:

• Location
• Age
• Vehicle make and model
• Number of drivers in your household

Once you've provided all the required information, you'll get quotes from multiple insurance companies. It's a quick, convenient way to compare rates and other policy terms.

After you shop around, you might find that your current policy is the best deal. You should still make sure to do this at least once a year. With online quote tools, the whole process takes just minutes. You'll be able to confirm that your current policy is the right choice, or find a cheaper one, so it's a win-win.