You’ve probably seen the commercials and heard people tell you to “shop around” for auto insurance. This sound advice could save you hundreds — if not thousands — on your premium. It’s recommended that you get at least three quotes. If you want to save even more, get six quotes. A 2004 Progressive Insurance survey of 100,000 consumers nationwide found that auto insurance rates can vary by over $1,o00/year!!
Why Do Some Auto Insurance Companies Charge More Than Others?
Every company has its own secret algorithm for determining your risk value and how much money they’ll charge to insure you. There are also different types of insurance companies. For instance, Geico and Amica have in-house employees who sell directly to consumers online or by phone. Other insurance companies — like Allstate and State Farm — use independent contractors who work on commission to sell one company’s product. A third type of insurance company is comprised of independent agents who can sell insurance from various companies.
Where Can Drivers Get The Best Auto Insurance Rates?
Direct agents offer the best rates for their companies. Since there is no “middle-man,” you’ll save 15 percent typically. You can access these direct agents by searching for free quotes online and selecting the offer of your choice to proceed. Of course, many of these direct companies can be fussy about who they insure. If your driving record isn’t squeaky-clean, you’ll probably need to check with the larger auto insurance companies like State Farm (18 percent of the market) or Allstate (12 percent of the market) and see if an independent agent can beat your best quote.
What Discounts Do Insurance Providers Offer?
Every auto insurer also has its own set of available discounts. You can save by choosing one company to provide a combination of different types of insurance. You can get money off by taking a defensive driving course, by retiring, or just by being a good student. There are Mensa discounts, group savings by employers, money off for college kids who dorm, and safety feature discounts. Some companies also have loyalty programs that are worth asking about.