Shopping for Insurance

By eric | Jul 28, 2008

One of the bills I hate paying each month is my car insurance. No matter how much nor how little I give them each month it just seems like I am giving them money for nothing. After all, Knock on wood I’ve never been in an accident and had to use the insurance. Paying my insurance each month is like giving someone protection money. It’s like the old mafia when they would come around and suggest you give them a skim for protection of your store. Of course, the insurance companies have statistics for accidents and the insurance company won’t rough you up. Either way, I don’t get back what I’ve put in. Seeing as how I put in and do not take back out I don’t want to pay them extra money each month, not a dime over the lowest price. After all, why pay 40% more for the same coverage?

This article highlights some key points to shopping around for automobile insurance. My last article discussed When to shop for automobile insurance. My personal reason was the first bullet “Too expensive.” If you are content with your company but just looking for ways to lower your insurance, take a look at this article from Here Every Cent Counts.

Starting Out
One of the first things you should do when shopping for auto insurance is to get a grip on “How much insurance you need.” Edmunds.com has an excellent article outlining the basic requirements of your state. I recommend taking a look at that link before calling around. Although most insurance companies out there are very honest, In today’s society there is always someone trying to get a higher commission by lying to you.

Getting the Quote(s)
Once you have an idea of what the basic coverage is for your state it’s time to start making calls or visiting websites. Usually each call or website visit will take roughly 15 – 20 minutes, this is why I’d recommend going to a central site like Insurance.com where you can compare multiple quotes. As the websites tag line say’s “May the best quote win.”

Chance to Save
While putting your information into the website or to the representative on the telephone here are some bullets to consider in order to get the best available price.

Discounts – Ask for every possible discount that is offered. There seems to be a discount for almost everything. To list a few that I’ve received at one time or another; Good student discount, safe driver, Military discount, multiple policy discount, Member of X Organization discount. Just consider any organizations you may be a part of, groups you have joined, good grades, anything may be a potential discount that could save you even a few dollars per month. Multiple discounts can add up to a monthly savings between $10-$50.
Deductibles – The higher you set your deductibles the lower your monthly payment and premiums may get. Of course, raising your deducible from $250 to $500, or $500 to $1000 can only really be done if you have the finances to handle it. You do have an emergency fund right? This is where an emergency fund can come into play, while saving you money by raising your deductible.
Coverage – When you finance a vehicle you are most likely required to have full or comprehensive coverage on that vehicle. Have you paid the vehicle off? Does your policy reflect that? Chances are if you’ve paid the vehicle off it is now anywhere from 4 to 5 years old. Changing the coverage from comprehensive to basic on an older vehicle that is paid off can save you a lot of money on your premiums.

Additional Information and Articles

10 Steps to Buying Auto Insurance

9 Ways To Lower Your Auto Insurance Costs

How to Shop for Automobile Insurance