For Better Auto Insurance Rates, Shop Around

The first rule to remember when you are looking to purchase auto insurance coverage is that you must shop around. Some time ago my auto insurance provider raised my rates. It was probably a general rate increase, but I decided that I would try to find a less expensive policy.

My first thought was to look through the yellow pages (yes, I remember the days before the Internet) for some local insurance agencies. I called four agents in my area. I told them what types of vehicles I owned, what types of coverage I needed, and the deductible amount I wanted. The agents processed my information and provided their estimates. I wrote all of the information down in a notebook. The estimates were a little higher than I expected and I knew that I needed to keep looking.

My next move was to the Internet. I went to the websites of three or four of the large national car insurance companies. I completed their online quote forms and received quotations for my automobile insurance. Then I printed out the quotes and compared them to the estimates I had received from my local agents. Unfortunately I was not quite satisfied. After all, the goal was to reduce my insurance premiums.

Finally, I selected three of the most promising quotes for further refinement. I called the toll free phone numbers for these companies. After wading through the system I was able to speak with a live person. At this point I begin to ask very specific questions about all of the different aspects of my policy. Did I need comprehensive insurance or only liability? Did I want coverage that protected me from drivers that do not have insurance? Did I want to have enough liability coverage to cover me were I to damage an expensive car? How much money did I really want to pay as a deductible? All of these items figured prominently into the price of my policy.

I was able to discuss all of these items and more with an agent on the phone. Through this process I was able to refine the quotes which I had received earlier. Since I had asked each agent the same questions, I was able to get a side by side comparison between the different companies. This enabled me to pick the least expensive policy based on common criteria. As a result, I not only avoided the rate increase of my old insurance company but I was actually able to reduce my insurance costs compared with my previous policy.


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