Smart Shopping For Auto Insurance

May 20, 2008

When it comes to buying auto insurance, many car owners want to get the process over with as quickly as possible. Thus, they often buy the first auto insurance they see that seems affordable, heedless of whether or not they are, in fact, receiving the best deal.

However, not all automobile insurance is created equal. You’ll be surprised how much money you can save if you spend only a little bit of extra time shopping around. According to surveys issued by Progressive Insurance during 1999-2004, car insurance rates across America vary a great deal–by about $481 to $586 per six month period, depending on the part of the country in question. This means that by shopping around when looking for basic insurance to cover you for six months, you stand to save at least $400.

Here’s what you need to do to find the most affordable auto insurance that will, at the same time, give you all the coverage you need.

First of all, obviously, you need to contact many insurance providers before deciding on the one you will use.

To make this process easier, have a list of questions to ask, and always ask the same questions of every company you call. Decide on the kind of coverage you’re looking for, ask what kind of plans the company offers to fulfill your needs, and then ask for quotes. If it gets too confusing, write down all the answers you get. Then, compare and contrast.

Another good strategy is to call many different kinds of insurance companies. Call up the big companies, like State Farm, SAFECO, Allstate, or Nationwide; then, call up some of the independent insurance purveyors in your particular locality.

The Internet can be a big help here, especially if you are phone phobic. Many insurance companies will give you free quotes online, and you can look at them all at the same time without talking to anyone on the phone. At the same time, the convenience of phone-free insurance shopping can also be a drawback. The best bet is probably to combine the Internet with more traditional methods when shopping for insurance.

Talking to agents gives you the opportunity to ask questions you wouldn’t have conceived otherwise. It also lets you ask questions to which you would be hard-pressed to find the answers, even on the best-designed site.

What kinds of questions should you ask? Don’t only think about the cost of a given insurance plan. Although it’s tempting to only look at prices, think about what you’re getting for your money. Look carefully at what kind of coverage the insurance you are considering will give you, and educate yourself on the types of coverage that are generally available. Then, think about what coverage you will actually need. Be especially wary if the company offers temptingly low premiums.

One other factor to look into is how a given insurance company processes its claims. There are different ways to process a claim, and people often neglect to educate themselves about their insurance’s company’s claims processes until they have to file a claim.

Finally, listen to the actual insurance agent that you are talking to. Does he or she sound trustworthy? Does the agent sound like he or she is trying to hide something? Also, make sure the insurance carrier is financially solvent, and can actually pay you in case you have to collect.

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Posted by admin | Filed Under Auto Insurance 

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