This article was last updated on May 7
The NY times had a great piece on the benefits of calling your auto insurance provider for a better rate on your current car insurance policy. In particular, if you can get cheaper auto insurance quotes from competitors, there is a good chance you can save a significant amount with your current provider; if they really want to keep your business that is.
Mr. Mitchell said he knew he should review his expenses and try to trim whatever he could. His hefty auto insurance premium on his two cars — he was paying $2,537 a year — seemed a juicy potential target. But he said he “dillydallied,” and didn’t call his insurer, Liberty Mutual, until a couple of weeks ago, shortly after AARP contacted him by mail and urged him to call The Hartford for a free quote on his auto insurance.
And it was a good thing he decided to call. The Hartford told him it could offer him a policy with the same coverage for just half — yes, half — the amount he was paying Liberty Mutual, or about $1,267. Mr. Mitchell said he contacted Liberty Mutual with the news. And wouldn’t you know, the representative told him that it had revised its underwriting standards and he would now qualify for a premium of $1,207.
“I was happy to get the reduction, but I was dismayed to learn that the burden was on me, which means there are probably thousands of policy holders who are eligible for this but don’t know what they don’t know.”
As the story goes on say, the average auto insurance premium — for liability, comprehensive and collision coverage — was about $901 (or $450 semi-annually). As you shop around for a new or better comparison quote, you should also consider factors beyond price and deductibles alone, including the insurer’s rating and responsiveness to claims.
Here are some major auto-companies and insurance portals (multiple quotes in one palace) to consider getting a free comparison quote from:
GEICO – Owned by Warren Buffet’s Berkshire Hathaway, this insurance provider is well known thanks to it’s incessant advertising and actually does have one of the easiest to use websites, with clear guidance on key terms and coverage options. It took me around 5 minutes to get a premium estimate (broken down by each insurance item) that I could easily customize to see what impacts changing one or more factors would have on the premium. Since GEICO is well known and in most markets, getting a cheaper quote from them will almost always get your provider to seriously consider matching or beating their price.
Esurance – This insurance website is now pretty well known thanks to its extensive advertising campaign on providing no-frills discounted car insurance quotes for various types of vehicles. They act like a broker between you and the other insurance companies and given their discount guarantee they are definitely worth visiting for a free comparison quote in the ultra competitive insurance market.
All State – “Safe Drivers Save 45% or More” is the claim the company makes. I found this is most likely true only if you have multiple insurance policies with them (e.g home and car). So if you willing to look at or already have combined/multi-policy coverage then All State is definitely worth getting a comparison quote from.
Insurance Portals are becoming another popular way for consumers to get free auto comparison quotes from various small and large providers. If it’s been a while since you shopped around for car insurance it may be worth starting with a free quote comparison from an insurance portal, and then taking quotes received to get a better deal from your current or preferred provider.
Once you get one or more cheaper comparison quotes for a similar coverage level, print the page as proof and call your current insurance provider. If they cannot meet or beat the competitor quote, then you may need to consider switching if the savings are worthwhile.