Pay Less for Auto Insurance by Getting Quotes From Different Insurers, Using Insurance Brokers, and Using Comparison Sites

Written By: Riley Waters on May 17, 2010 No Comment

In order to get lowest auto insurance rates, get quotes from various insurance providers. The procedure of getting quotes takes up time, since you have to fill out forms or spend time on the phone with insurance reps.

The savings however, are likely to be worth it, so take the time and do it.

Consider the fact that insurance companies all have various preferences in terms of customers they wish to take on, and give different prices to different customers. Insurance rates, may and probably will vary greatly with various insurers.

Why?

Drivers are classified by insurance companies into different risk categories based on the past driving history, location, type of car they drive and other factors. Once insurers have the data, they combine it with statistics and research, which in turn helps to determine the risks. For example young drivers have more accidents then older drivers, therefore insurers offset the risks by increasing the costs. The same goes for drivers who live in Toronto as opposed to rural areas.

Based on the category each existing or potential customer is put into, insurance companies decide which category will be the most profitable for them (taking into account competition, market share, etc), and offer the lowest rate to the driver who fits their “best” client description. One insurance company may specialize in risky drivers, while the other one may only choose to deal with safe drivers. A quote from two of those companies may differ drastically; therefore it is vitally important to shop around with different insurers.

Based on those predictions and statistics, insurers categorize drivers, and assign a pricing to each category. Some companies have preference for drivers with an extremely clean driving history, while others are OK with riskier groups. They price premiums for those customers, and as a result the “perfect” customer gets the lowest rate with such a company. If the driver from the category with which the insurer does not want to deal with gets a quote, the rate is likely to be very high. In that case the best thing to do is to find a company that deals with other categories of drivers, and can offer a much lower rate then the competition. In order to find an insurance company that offers the best rates for your driver category, you must shop around and compare auto insurance quotes.

1. Look for insurers using the search engines.

Go to the company websites and fill out their online forms. Also be sure to give them a call and talk to a representative. The negative of talking to an insurance rep is the possibility of sales pressure from the other side.

2. Make a list of different insurance brokers.

Talk to insurance brokers. They usually have access to multitude of rates from different companies, and can quickly pinpoint the company that will offer you the lowest rate.

3. Use search engines to find insurance comparison websites.

There are several websites online that offer instant insurance quote comparison. The number of quotes you will be able to see depends largely on the number of partnerships a comparison website has. The comparison websites are the best choice if you wish to compare many different auto insurance rate fast.

Wish you the best of luck in finding the lowest car insurance rate possible!

You can find out more about cheap Ontario car insurance on writer’s website, which is full of tips that can help you learn about auto insurance, what affects it, and what you can do about it as a vehicle owner.