Automobile Insurance premiums are rising and you need to shop around to make sure you are getting the best deal. You want to make sure you have the coverage you need while paying the least amount possible in premiums. Before comparison shopping make sure you know all the discounts you are eligible for.
Some types of discounts available include anti-theft devices, good grades for your student driver, driver’s education and defensive driving courses, multi-vehicle coverage and even discounts for purchasing your other policies such as renter’s or home-owner’s insurance from the same provider. Gathering all this information may seem like a hassle but the reduction in your premiums could make a big difference. There are three steps that can help you when comparison shopping for automobile insurance.
Search out online resources which pertain to your area by logging onto http://www.naic.org which is the National Association of Insurance Commissioners (NAIC) website. There is a link to NAIC States and Jurisdictions. Once there locate your state or area?s website listing and you will be able to pull up the most current rates of local auto insurance companies. The rates quoted on these sites vary according to your personal situation.
Next, you need to shop around for coverage. Be honest with the companies you call or visit online about your personal situation, your insurance needs, and your driving history. When you receive a quote, confirm that you know exactly how much coverage is being offered for the premium amount mentioned.
You will also need to make sure you know the coverages your state law requires to insure that you are in compliance. When getting quotes from different providers, make sure the quotes cover the same limits, deductibles, and other important information.
Now that you’ve found the coverage you need, discuss discounts with the providers you have selected. Be sure your quote is the final amount of the premium after discounts. While one provider may offer a separate discount for each eligible item, another provider may offer combined discounts. This does not mean because you are getting three discounts from the first provider and only one discount from the second provider the first premium is cheaper. For example, Provider A may offer a 5% discount for each of three items while Provider B offers a 20% discount because you meet a combination of requirements. You are getting the higher discount from Provider B. Make sure you compare the final premium rate before making your decision.
However, if that one discount offers you a savings of 15% total, it will make more sense to purchase your policy from the second insurer. Take a look at the bottom line (the final premium amount) for a true comparison.