Get price quotes from more than one company. That’s because each insurance company not only has different rates, but also has different ways of calculating your premium. So you need to make sure, when you shop, that you are comparing similar coverage.
Here are four tips for getting the most for your money when it comes to auto insurance.
1. Existing Relationships – don’t forget to check with your current insurance carriers particularly companies that provide you with insurance other than auto insurance. The relationships you have with your current insurance companies can easily lead to preferred auto insurance rates if you are already an established client with non-auto policies like homeowners or life insurance.
2. Join a Group – Similar to group health insurance you can often get lower rates if you are part of a group. Insurance companies like to insure groups that have lower overall risk profiles than the average public. They will give preferred rates to professional organizations, alumni groups, hobbyist clubs, companies and other similar groups that offer group policies to their members. The American Automobile Association, for example, saves its members millions every year.
3. Personal Factors – Most insurance companies give special discounts to individuals who qualify for certain conditions. Students, for example, often get lower rates for maintaining a higher grade-point average or fro taking a driver’s education class. Adults will typically get lower rates for good driving records and or accident free driving periods.
4. Small Insurance Companies – sometimes small insurance companies offer lower rates to certain groups of people or to people living in a certain areas. This is because they may be trying to grow their customer base in a certain area or in a certain class of drivers. Be sure to include one or two smaller companies in your price comparison project.
In general it pays to shop around for auto insurance – and not just once. You might consider comparing prices every year or two since conditions change frequently in the marketplace and one company or other is always offering new rates or different rates to some segment of its potential customer base.
Because the insurance industry is so competitive, it is usually not too hard to find a company that’s willing to give you a better deal than the one you have.
Bill Brankar is passionate about helping people reduce expenses with auto insurance and other financial instruments. At his new site – general auto insurance learn about auto insurance comparison.
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