Find Low Rates on Auto Insurance
Effective Tips for Getting the Lowest Car Insurance Rates
May 7, 2009
Auto insurance has become a multi-billion-dollar industry that sometimes uses advertising that is based on name recognition, catchy slogans, and bold assertions about how one company may or may not be more affordable than another. Consumers hear advertisements about cheap car insurance rates and instantly gravitate toward the most popular companies, but they may not be getting what they're bargaining for. These tips will help average consumers shop effectively for the lowest car insurance rates and the best value.
Most Effective Way to Compare Auto Insurance Quotes
The most effective way to shop for affordable car insurance coverage is to compare the rates of as many insurance companies as possible using the apples-to-apples method. Shoppers should plan to obtain eight to twelve quotes using the following categories:
- Two to three independent agencies. Independent agencies sell insurance for multiple insurers and are able to offer competitive rates with top insurers. They can be found in the yellow pages under the "insurance" heading.
- Two to three exclusive or "captive" insurance agents. Captive insurance agents join large, well-known insurance companies and sell their products exclusively. These are the big companies with multiple agents located nationwide.
- Two to three big advertisers. This category is made up of companies that openly claim to have the cheapest car insurance rates available. Most invite shoppers to call their toll-free numbers for free quotes.
- One or two online insurance providers. Shoppers should use the limits offered to them in their quotes to shop for additional rates online.
Things to Remember When Shopping for Auto Insurance
When shopping for auto insurance, consumers should make sure that the limits they are being offered are consistent among the agents they choose during the quoting process. State minimum companies can appear to beat the rates quoted by insurance agencies until their offers are compared side-by-side. Insurance agencies that decrease their limits to match state minimum companies have been known to win when consumers take time to thoroughly compare their offers.
Shoppers should also keep in mind that state minimum companies may not offer the same types of coverages as their "standard-market" counterparts. It is not common to find popular and useful features like Accident Forgiveness and GAP Insurance at non-standard companies.
Value & Auto Insurance
Insurance shoppers should remember the importance of value when comparing rates. Consumers should ask how their monthly or yearly premiums change when their coverage limits are increased by 25% and 50%. Most shoppers will be amazed to find that the difference is minimal. Many will also discover that it is possible to double their coverage at the same price with a different insurer. In cases like this, it may be worthwhile to change companies.
When deciding whether or not to purchase more car insurance coverage, consumers should remember that if an accident occurs, any damages left underpaid due to inadequate insurance coverage will become their legal responsibility. It is not uncommon for under-insured motorists to receive bills for tens of thousands of dollars. Consumers can protect themselves from these situations by focusing on value.
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