Shop Auto Insurance and Save
The number of TV ads touting auto insurance companies seems limitless. There’s a gecko talking on screen about insurance provided by “his” company. A spokesman for another insurer tells us we’re in “good hands” with his employer. Yet another voiceover reminds us that, “like a good neighbor,” his company is there for us when we have a car accident. As a plaintiff’s personal injury lawyer, I review auto insurance policies all the time because insurance coverage is one of the most important things I need to know about.
An injured client’s own insurance coverage can sometimes be as important as the amount of coverage carried by the negligent driver who injured him. Therefore, it is important for every car or truck owner to search for the best insurance terms and the maximum coverage he can find at the best price. For this reason, I recommend you comparison shop your auto insurance coverage at least once every two or three years, if not more frequently.
Every insurance company bases its insurance rates on its own set of factors and actuarial calculations. These differ from company to company. Variables may include past accidents and traffic violations, the make and model of your vehicle, the number of miles you drive per year, where you drive, your age, your gender, and, of course, the amount of insurance you want to purchase.
It may be news to you, but auto insurance companies sometimes consider your credit record in determining the cost of your premium. A credit based insurance score differs from ordinary FICO scores used by banks and other lenders, but it does factor in data found in your credit report. Apparently, auto insurance companies believe your credit record may indicate how likely you are to file an insurance claim.
With all these variables, it makes sense to do some comparison shopping every so often. You might save hundreds of dollars by changing insurers. Look to see if your state’s Department of Insurance provides price comparisons. Other Web based resources include: www.ChoiceTrust.com; www.value-auto-insurance.com.
Be careful in your analysis. Do you qualify for discounts? Many insurers offer good-student discounts to families whose teenage drivers maintain a certain grade point average. You may find discounts for going paperless or authorizing your bank to set up direct payments from your checking account. Some companies give discounts to customers who pay the premium in full rather than opting for an installment plan.
Check out the reputation of each auto insurance company you consider. Organizations like Consumer Reports and J.D. Power & Associates provide information regarding customer satisfaction rankings. Although many insurers now sell directly over the internet, many companies also have local agents who represent them. These agents may not only be able to give you competitive premium quotes, they can also explain, face to face, what your coverage options are and answer questions you have.
At the end of the day, you may decide to remain loyal to the auto insurance company you already have. And that’s all right. You will have satisfied yourself that you’re getting the best deal or value for your money. Just knowing this can give you peace of mind.
Labels: Motor Vehicle Accidents