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“Insurance Savings Advice & Tips On How To Save Money On All Your Insurance Needs”
“Insurance Savings Advice & Tips On How To Save Money On All Your Insurance Needs”
AUTOMOBILE INSURANCE -
Getting the Best Price on Auto Insurance
Although automobile insurance companies are regulated by your state insurance commission, their rate structures vary widely. So, it pays to shop around for the best rates, which could easily save you hundreds of dollars annually. When shopping, keep the following in mind:
1. Meet with two or three of the major automobile insurance companies such as State Farm or Nationwide.
a. Work with these companies to figure out what types and amounts of coverage are right for you.
b. Once you decide what coverage you want, get a quote from each of the companies based on this coverage.
2. Using the coverage descriptions discussed above, contact other major insurance companies and get a quote. If you qualify because of prior experience in the Armed Services, make sure to contact USAA to see what they have to offer.
3. Using the coverage descriptions, contact two or three independent insurance agents to get quotes. Independent insurance agents generally represent several different less well known, but reputable, insurance companies that may offer better pricing.
4. Using your coverage descriptions, go to the Internet and apply for coverage with some of the better known insurance companies that sell over the Internet to get a rate quote. You may also want to visit sites like Insurance.com where several insurance companies are represented, and rates can be compared.
5. Now that you have decided what types of coverage and amounts you want, and have found a lower priced insurer that you like, consider the following before making a final decision.
a. Because of state regulation, it is rare that an insurer will fail and not be able to pay your claim, but it does happen. So if you have decided to deal with a less well known insurer, and they are represented by an independent insurance agent, have that agent demonstrate to you that the insurer is financially secure. This will generally be done by showing the rating an insurance company has received from an independent insurance rating agency. If the company is not represented by an independent agent, or you are still concerned, call the State Insurance Commission to inquire and/or do some research on the Internet at insurance company rating sites like Moodys.com and AMBest.com.
b. While the company you are considering may be financially solid, they may or may
not have a reputation for settling claims in a hassle-
6. Now that you have chosen a reasonably priced automobile insurance company, you may want to have them continue as your insurer for many years to come. They may be a great company and they may continue to be reasonably priced. Or they may not. Companies change rate structures and individual’s driving records and needs change. Therefore, every couple of years it pays to do a little checking to see if significantly better rates are available elsewhere, and if it makes sense to change companies. Make sure any new policy is in effect before the old policy is dropped.
7. Many people feel that once you have reasonable pricing for automobile insurance, one way to continue to keep the rates down is to not report smaller claims, particularly if they do not involve other vehicles or persons. For instance, if the cost of the repair is $500 and you have a $250 deductible, is getting a check for $250 really worth the risk that submitting a claim may raise your rates. It probably varies from company to company, but you may want to ask your insurance agent or company how submitting these types of claims would affect your rates, prior to submitting the claim.
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