Before you call the first telephone number you see on the television, and by the way, that’s a bad car insurance shopping tip; be a smart shopper and follow these guidelines:
Types – Learn the types of insurance such as liability, collision and comprehensive. The Consumer Action website offers what each state requires as far as types of insurance and limits. You can find a link to their website in the reference section.
Rates – What affects your rate? Factors such as age, type of vehicle, area where you live, sex, and your driving record all affect car rates. When you obtain any quote, ask if any of these factors were utilized in obtaining the price and how.
Cheaper Policies – There certainly are cheaper types of car insurance you can get, but are they worth it? First, find out if the insurance company is rated by AM Best (link below), an insurance rating company—and if they have an A rating. An insurance company with even a B or C rating may not be your best bet even though they offer the best price. Why? Time in business, customer service, and ease of claims paid are included in these ratings.
Too Many Claims – If you have multiple claims and think you’re getting a better rate from “the other guy" expect that initial premium to rise—fast! Initial or special offer rates are often increased after a three to six month period.
Discounts – Many insurance companies will offer discounts if you insure all of your vehicles and your home with them. They call this bundling and it often will save you hundreds if you inquire about these types of discounts.