Getting car insurance can be a hassle and making a car insurance comparison is usually something most people don't do. They just roll over their insurance with the same provider and think nothing about it. I am here to tell you not to do that you should compare your insurance every year without fail. There is a good reason to this. It gives you every opportunity to get a better deal.
When you apply for car insurance you have to answer heaps of questions. The questions can be different and some companies ask more than others. The reason an insurance company will ask you all these questions is to determine how likely you are to cost them money, basically, how likely is it that you make a claim. It is also important to note that most of the cost in your insurance policy is the underwriting risk and a smaller proportion is a commission or fee for the retails brand you where you bought your policy. So it is the underwriter who is asking you the questions and pricing most of the policy.
So how does a company determine how much they charge you? This is where the mathematic gurus shine. It's all about statistics. The concept is similar to how the TAB or Sports Bet determine your odds in that a pool of funds (payments / bets) are paid out (claims / winnings) and the rest goes to the insurance company or betting agency. The game for insurance companies and betting agencies is to entice people to use their product by offering a cheap price or good odds but at the same time make a nice tidy profit.
The important thing to remember and main reason not to automatically role over your car insurance is that companies are updating their statistics all the time and so prices are changing all the time. That's why when you get a quote it only lasts a month – the prices change. After a year theses price swings can be in the hundreds of dollars. It is literally throwing money out the window. Think about how annoyed you feel getting a parking ticket, wishing you had spent 5min looking for a park. Well not spending 10min and getting a car insurance comparison could leave you with the same feeling when you realised you could've easily saved yourself $100s by making a few phone calls or a couple of mouse clicks.