Comparison Shopping

The easiest way to save money on auto insurance premiums is comparison shopping.  You can often reduce your monthly insurance bill by 15% just by comparing your current policy to the policies that other companies offer. 

When comparing policies, there are a few things that you should keep in mind. 

• Compare apples to apples - Different auto insurance carriers offer different options.  Make sure that when you are comparing prices you are comparing a price for the same amount of coverage.  Be sure to compare the personal injury protection coverage amount, collision damage amount, liability coverage amount, and any other coverages that your auto insurance policy may provide. Likewise, some auto insurance policies have provisions for rental cars and roadside assistance.  Be sure that the policies you compare have identical services.
• Review your deductibles - A deductible is the amount of money that you must contribute in a given year, before the insurance company pays your claim.  These usually range between $100 and $1000, but can be as low as $0 and astronomically high.  The lower the deductible, the higher your premium.  Make sure that the policies that you compare have the same deductible.
• Choose a stable company - If you ever have to make a claim on your auto insurance, you want to know that the company you choose will still be in business.  AM Best and other rating services rate insurance companies according to their financial strength.  These ratings can be a good indication of how stable an insurance company is, and how long they might be around.
• Decide how important service is to you - You may find that a lower priced auto insurance policy may come with sub-standard service.  Be sure that the company you choose has a good reputation for paying claims quickly.  This, to some, is the most important aspect of an auto insurance policy.