How to Compare Auto Insurance Rates

Drivers looking to save money on auto their insurance rates must obtain several quotes and compare policies. The internet has made is much easier for drivers to obtain several auto insurance quotes online, so the next step is for the driver to make sure she is getting the best auto insurance rate possible. Here are a few tips on how to compare auto insurance rates.

Difficulty: Moderate

Instructions

1. Compare the coverages. Before you can compare the auto rates you have to make sure that the coverages are the same. Comparing apples and oranges is no way to truly compare your auto insurance rates. Make sure the coverages are comparable.

2. Analyze the deductibles. There is an inverse relationship between the deductible and the your auto insurance rate. The higher the deductible, the lower the rate and visa versa. Therefore, if you compare two policies that have the same annual premium but one has a higher deductible, the policy with the higher deductible is charging a higher rate.

3. Research the insurance companies financial standings. A very low auto insurance rate from an insurance company that is not financially sound, is tantamount to potentially paying your own an insurance claim. You want an insurance company that is financial stable and is going to be around when you need them.

4. Review of the underwriting basis. Insurance companies base the auto insurance rate based on things like driving record, years driving, marital status, age of driver, vehicle information and a host of other criteria. Make sure that he underwriting information for each policy included in the comparison is the same. Incorrect underwriting information may inflate your auto insurance rate.

5. Review the premium payment options. While this does not directly affect your auto insurance rate, it does affect your cash flow. Some insurance companies allow policyholders to pay their premier monthly while others quarterly and others semi annually. Depending on your cash flow, you may want to select an insurance company that offers monthly premium payment. Find out, however, if there is a charge for paying monthly (or a discount for paying upfront).

6. Consider the insurance companies accessibility. Having a low auto insurance rate is great for the pocketbook but if you are unable to access the claims department or the underwriting department when you need them, then selecting the lowest rate might not be the best solution. Many insurance companies allow policyholders to add and delete vehicles and order auto ID cards over the Internet. If such features are important to you, factor that into your comparison.

Tips & Warnings

• When comparing auto insurance rates, it's best to compare an odd number of companies. Comparing two policies does not give a full picture of the range of insurance rates. It's best to have to compare at least three auto insurance quotes.

Resources

• How to Lower My Teens Auto Insurance Rates

[dsarokin]

on 10/5/2008 Good, solid advice. Much appreciated.