Easily Obtain Low Cost Auto Insurance
3 Easy Steps To Comparing Quotes Effectively
Step 1
Begin by gathering all the information necessary to compare quotes. You’ll want to get together license numbers, the date of birth for all drivers, and you prior coverage details. You current policy will have your current liability limits, policy expiration date and much of the other information you will need while completing the online quote form. You may also want to get your vehicle identification cards as these will have the (VIN) Vehicle Identification Numbers which will help with the accuracy of the quote. Decide on the amount of coverage and other optional coverage you want to include on your next policy. The goal is to always use the same exact information for each quote form you complete. This is the only way you can get an apples to apples comparison.
Step 2
Complete a single form and get a variety of local agents working on quotes for you. Our quote service gives you the ability to send your auto insurance quote requests to multiple agents serving your area. These quotes are not instant as the Agents will need time to evaluate the request and build a proposal based on your insurance needs. Although these quotes don’t come back instantly, these premium proposals are very accurate.
Step 3
While agents work on providing you a quote, begin determining which company profile you belong to from above; company A, B or C. Dependent on the group you select, quote at least two of these companies directly while you wait for a response from one of your local agents.
Make Sure Your Current Insurer Is Doing a Good Job:
1) Are your discounts being applied?
Although most insurance discounts should automatically update within your policy, such as good driver discounts, multi-car discounts (after adding a vehicle), multi-policy discounts; this just isn’t always the case.
Always consider calling your insurance company if:
- You recently became married.
- You recently purchased a home or second vehicle.
- You’re a student who reached an above average GPA.
- You’ve been clean of tickets and accidents for over 3 years.
- You change professions; perhaps you landed a government career.
2) Do you need the optional coverage?
Insurance companies like to make sure you’re properly covered – most times. Sometimes they just want to sell you as much coverage as they can.
I remember when I was 20 I purchased an old Isuzu Amigo for a total of $850. When I called Progressive for a quote she insisted I get collision and comprehensive coverage since it was only a few bucks more as long as I selected a $1,000 deductible. Really, what’s the point?
If you’re driving an older inexpensive vehicle, you may save hundreds a year simply by insuring the vehicle with liability only. Before removing collision and comprehensive coverage, be sure it’s something you really want to do.
Learn more.
3) Ask your agent for suggestions.
Every insurance company is built a little different. Some will offer programs to help you reduce your rates. Some may offer discounts for attending a defensive driving course. Others may discount your rate after you install a car alarm system. If you can get one installed for $100 at your local shop and save $150 a year on car insurance, why not make the upgrade. This is a win win! By asking the Agent questions, you can get insight to what you can do to lower your insurance cost.
Why Do Car Insurance Rates Vary By So Much
Finding low cost auto insurance is like finding low cost anything. You need to shop. There is no getting around this if you really want the cheapest insurance rates. Insurance companies have different goals in mind. Here’s a quick illustration to show why insurance rates vary so much from one company to the next.
Company Profiles
Company Profile 1
This company wants to insure only drivers with perfect records. Their ideal client is one who may be in their 50s or 60s and have no tickets or accidents on their record. Their credit is superior and they’ve earned the trust of this company. Their goal is to target as many of these drivers with traditional advertising and word of mouth. Their rates are a little higher and can be extremely high for those who don’t fit within this category. Their goal is to provide the superior protection needed by someone that has accumulated a decent amount of wealth.
Some companies that target these types of driver include: Farmers, Travelers and The Hartford
Company Profile 2
This company is targeting the younger crowd and those who may have a couple bumps in their record. Sure, the risk to insure this group is high, their policies generate a substantially higher commission also. As risk increases with any investment, so does the potential reward. As long as this company can insure enough people, these higher than average premiums will offset the amount of loss claimed by its insured.
Companies that I found to offer competitive rates for these drivers include Dairyland and 21st Century.
Company Profile 3
This company targets both groups of drivers and meets somewhere in between with their rates. Their main target may be newlyweds and young families. Their premiums are very competitive for this group of drivers and premiums offered to younger and older drivers may be slightly higher than other carriers, but still competitive enough to close sales. Company C reminds me of Geico and Progressive, possibly Allstate although Allstate’s advertising really pushes the idea of the good driver discount and their bonus check offers for driving safe.
So who has the cheapest insurance for you?
We went through three different types of companies. But the truth is, there are hundreds of insurance companies out there, all with their own algorithm for determining insurance rates. To really find the company willing to insure you for less you need to do your research. We’ve taken this research process and simplified it into a three basic steps.
