Find The Cheapest Car Insurance And Get Low Rates Online Today
To an extent, you can believe the hype about saving money on car insurance by shopping for lower rates. Perhaps not as much as the companies are claiming in their constant ads on TV, radio and online, but enough to justify a search for lower rates. A recent state-sponsored study out of Texas took a look at people who shopped for insurance after having been with a company for a number of years. The results clearly showed that the longer you stay with your current insurer without a fresh policy review, the more likely you were to find savings by shopping around. With that in mind, here are a few tips for finding cheaper coverage for your vehicle.
- Compare insurance rates from multiple companies. It is amazing how rates vary from one insurer to another. While a company like Geico might be cheapest in one state or for one demographic, it might be among the most expensive under another set of circumstances. It’s almost impossible to predict without taking the time to get a rate comparison from multiple car insurers.
- Decide if you need a local agent. For some people the convenience of a local agent to handle their auto insurance is more valuable than saving a few dollars per month on rates. When a claim arises there is comfort in knowing a familiar face will be available to handle it. Companies like State Farm, Allstate, American Family, Farmers and others have a strong agent network. These companies have also become fairly competitive by offering lower rates. Don’t be afraid to pull out the yellow pages and compare rates among local agents.
- Don’t be loyal. Some auto insurance companies offer teaser rates in order to acquire new customers with the hope that they will secure a renewal at a higher rate later. If you bite on one of these teaser rates, don’t be afraid to switch to another company upon an inevitable rate increase.
- Use our quote search tool. By submitting your zip code in the form at the top of this page, you will see a list of direct insurers that are targeting your geographic area. Usually these companies offer among the cheapest rates on car insurance. They are the ones trying hardest to acquire new customers in your areas and to do so have to offer cheap insurance quotes. It does them no good to market a product no one is going to buy. If you take about 20 minutes and get a quote from the top 3 companies, you are almost assured of finding the lowest possible online rates.
Check out RateWin.com for in depth facts and figures comparing the cheapest rates in various states and how factors specific to each state affect them. They actually compare data submitted to state regulators to find which companies typically have the lowest rates in a given state across various demographic scenarios.
States With The Lowest Rates
According to the Insurance Information Institute (iii.org) for the most recent year data is available (2006), North Dakotaled with the cheapest rates across the country with an average rate of $530. Following closely behind were Iowa and South Dakota, each staying below the $560 average premium mark. The insurance.com study from April 2009 showsWisconsin and Iowa leading the way with the lowest rates. Regardless, people in middle America seem to get lower rates than other areas of the Country, particularly the Upper Midwest region.
The highest priced states for auto insurance in the iii.org study were New Jersey and Louisiana followed closely by New York and Florida. Drivers in these states paid an average of more than $1600 on car insurance in 2006.
More Uninsured Drivers
We continue to find stories and statistics showing an increasing number of uninsured drivers during the current economic crunch – especially high risk drivers with higher rates. Although this is understandable, it does show that regardless of compulsory insurance laws across the country that auto insurance is one of the first things to go when personal budgets get squeezed.
This is unfortunate because it doesn’t result in a lower number of miles driven or accidents. The same number of people are on the road regardless of whether a sizable number let their insurance coverage lapse. Even more troubling is that it’s the higher risk driver who is forgoing coverage. What does that mean to you? Probably higher rates down the road. Losses where an at-fault driver does not carry insurance will be paid by the insurers through your uninsured motorist coverage. So insurers will more or less be paying out the same amount in claims, with a corresponding smaller pool of policyholders paying premiums.
Don’t forget that it’s generally against the law to operate an uninsured motor vehicle. At least take out the minimum liability coverage and shop for rates online in order to compare the cheapest quotes from various carriers. Car insurance should be one of the last things you live without in difficult times.