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Shop Online to Save Money on Auto Insurance

By Chris Bibey

If you are like most people, you pay your auto insurance premium every month never thinking about how much you could actually save by making a simple change. You may be wasting hundreds of dollars or more per year on the cost of auto insurance coverage. How does that make you feel? You are probably sick to your stomach! Fortunately, the internet can rescue you from this financial disaster. By shopping online you can save big-time money on auto insurance. With that in mind, you need to know exactly what goes into the process.

Here are four steps to follow, one by one, if you want to shop for auto insurance and hopefully save some money:

  1. Before you start searching you need to know what you have right now. How much money are you paying each month for auto insurance? What is your annual premium? Along with this, know how much coverage you have. Is your deductible $500? $1,000? Do you have any extras such as rental car reimbursement? The best way to know what your current policy offers is to request a copy from your provider – if you don’t already have one.
  2. Request auto insurance quotes. This can be done in two ways: through each company’s individual website or by using an all-inclusive service such as NetQuote.com or CheapInsurance123 for cheap insurance quotes. Either way, you want the same end result: three auto insurance quotes from three different companies. It is important that you receive pricing information from several providers so you can truly see where the market stands and what you should be paying.
  3. Compare all aspects, including the price and coverage. Once you have your three auto insurance quotes you should begin to compare them to your current policy. Which option is cheapest? Which one has the best coverage? Be sure to compare apples to apples. If one company quotes you for a deductible of $500 and another for $1,500, comparing the two is not fair. The higher deductible policy will be cheaper if all else is equal.
  4. Get on the phone. There is nothing wrong with starting the shopping process online, but once you make a decision you need to get on the phone to speak with an agent. It is at this time that you can get a final quote, ask questions, and of course, talk about additional discounts. Your initial online quote includes the basics. But when you speak with an agent you can get into the finer details and hopefully find yourself saving even more money.

Are you in the market for auto insurance? If so, shopping online can help you save money. Follow the four steps above to get started.

(photo credit: premii)

Chris Bibey
Chris Bibey is a freelance writer who over the years has honed his personal finance experience by writing more than 100 feature articles on the subject. In his spare time, Chris enjoys sports - West Virginia football in particular!

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Comments

  • http://wisefinish.com Wise Finish

    I would be great if there was a better/more convenient way to do this online… it takes so much time calling around.

  • gina

    Definitely worthwhile! My husband and I recently did this and we are saving about $300!!

  • Karmella

    I tried this last July, but I didn’t get too far – almost every place I contacted wanted all of my personal info. As in down to my SSN. I just wasn’t comfortable with that, and my gut says I’m paying about what I should be, so I passed on the quotes.

  • Winston C

    The internet has truly opened many portals to save money. For my car insurance, all I did was telling my agent that I was going to cancel my insurance with them (Nationwide) because I found a better rate online(I hadn’t found it, but I felt confident that I could find a better rate). And guess what she did for me? She told me that Nationwide recently acquired a smaller company and it has a comparable rate for few hundreds less than what I was paying at that time. And just like that, I saved several hundred dollars per year. The power of simply asking. :)

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