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By Brad Stroh
With auto insurance premiums rising across the country,
comparing premiums for similar auto insurance coverage has
become the ultimate test of your shopping savvy. Have you
checked with every insurer to be sure you’ll be paying the
lowest premium for the most coverage? Did you check on all the
discounts for which you might be eligible, such as good-grades
discounts for your high school student, driver’s education and
defensive driving course discounts, anti-theft device price
breaks, and multi-car rates? Putting it all together to know
you’re getting the best price is challenging, but the money
you’ll save on your premiums makes the extra effort well worth
it in the long run. Follow these three steps to be sure you’re
making the right choice.
First, log onto www.naic.org to find out if there are
any online resources that pertain to your area. This is the
website for the National Association of Insurance
Commissioners
(NAIC). Find the link to NAIC States and Jurisdictions. From
there, you can find out if your state or area has a website
listing the current rates of local auto insurance companies.
If
so, you’re already a step ahead of the game. Just keep in mind
that the rates quoted on these sites cannot take your personal
situation into account. If you have bad credit or a poor
driving record, your premiums will probably be higher than
those listed on your local insurance commissioner’s website,
but at least you can study trends of different companies in
your area from an unbiased source, making useful comparisons
that can save you time when you’re calling around. Even if
your
state doesn’t have a site, the NAIC website contains consumer
guides with valuable information to which you may want to
refer
during your search.
Next, you need to shop around for coverage. Be honest with the
companies you call or visit online about your personal
situation, your insurance needs, and your driving history.
When
you receive a quote, confirm that you know exactly how much
coverage is being offered for the premium amount mentioned.
Remember that your auto insurance is actually a group of
several different types of coverage. Ask how much coverage the
quoted premium provides to you and how much each coverage is
worth. Make sure you’re comparing similar plans, and know
what’s required by law in your state.
Finally, it’s time to talk discounts. Once you’ve narrowed
your
choices, compare the discounts offered from one insurer to
another. Get a quote on the final premium amount after all
discounts are taken. One insurer may offer you two discounts
good for 5% each while another may offer you only one
discount.
However, if that one discount offers you a savings of 15%
total,
it will make more sense to purchase your policy from the
second
insurer. Take a look at the bottom line (the final premium
amount) for a true comparison.
Look at the information the NAIC has to offer you, shop around
for the lowest premium and best coverage, and make sure you
receive every discount to which you’re entitled. If you follow
these steps, you’ll have the peace of mind of knowing you got
the best auto insurance deal available to you.
About The Author: Brad Stroh is currently co-CEO of Freedom
Financial Network and www.Bills.com. If you would like
more of Brad’s articles, please visit the Bills.com
information
on www.Bills.com/autoinsurance
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