THURSDAY, FEBRUARY 14, 2013
Countless commercials claim to save you hundreds of dollars with just a phone call or a click of the mouse. While that may sound too good to be true, in the world of insurance today, it might not be that unrealistic.
 When Consumers' Checkbook evaluated auto insurance companies, they found that many local drivers could save hundreds by switching companies. Researchers found that after getting quotes for individual and family driver profiles from several companies resulted in dramatic price differences.
For example, a married couple living in San Francisco who are both commuters and have clean driving records received quotes from 17 companies and got a wide variety of prices from under $1,500 to more than $3,500. Couples and individuals from around the country can receive similar quotes if they take the time to shop around.
When to Shop
There is no reason to wait until your renewal date to shop. If you find a better rate, the company you cancel your policy with should refund a pro-rated share of your paid premium. Just be sure not to terminate your insurance with one company until you have confirmed coverage with another.
Don’t Sacrifice Service
In addition to rates, research the company’s service record and find out what other customers say about them. Some low-cost insurers still received above-average ratings in online surveys of policyholders who had filed claims. It can also be beneficial to ask body shop owners to name companies that they would consider to be easy to deal with and beneficial to customers.
The Reality of Rates
It is a complicated and mysterious method to how insurers come up with these rates. In the olden days of basic car insurance, most insurers sorted customers into pricing tiers, based on simple factors such as location, age, and driving record. Today, there are literally hundreds of variables that can be calculated into an insurance rate such as credit history, home ownership, and limits on past policies.
Since each insurer interprets these variables differently, each company can issue a separate rate. As some insurers continue to adopt these complex pricing systems, individuals will benefit from looking around to find a company that works for them.
There’s not much rhyme or reason to how and why car insurance rates vary so widely, but even for the same coverage, same driver history, and so on they do vary quite a bit. This is why it’s often up to the policy holder to shop around to find the best price possible.
By Matt Reynolds - Google+
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