1. 15645 POINTS
    Edward HarrisPRO
    Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
    You can get cheap car insurance by shopping and comparing with an experienced broker. There are dozens of reputable and reliable insurers in your area, so it is very difficult to find the best pricing without taking a  week off from your daily activities!

    For example, as an experienced broker (more than 32 years), we are committed to our customers and finding the best rates from top-rated carriers. When you hear "shop till you drop," you can apply that work ethic to an experienced broker/agent when they go to work for you.

    Since a broker understands underwriting guidelines of multiple companies, your specific information will help determine the carrier that gives you the best deal and the broadest range of discounts.
    Answered on May 20, 2013
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There are two ways to measure whether an auto insurance policy is cheap. From the television advertisements you could think that the premium is the way to determine who has the cheapest insurance.

    Your state insurance commissioner is charged to make sure that insurance companies keep their promises. He does this by making sure that the premiums being charged are adequate. Since all insurance companies doing business in your state are offering their policies to the same group of people, it would seem that ultimately they would have pretty similar experience and would charge fairly similar rates.

    When you hear an advertisement telling you that customers saved on average 25% by switching to company A, you need to understand that information like that is the result of after sales surveys. This is what people report. That is why almost every insurance company has similar advertisements. If everyone is saving money over everyone else, something isn’t quite right.

    The other way to determine cheap insurance is to determine by value. You buy automobile insurance to pay claims when you have an accident or your car is damaged. When this occurs how much you paid in premium may be insignificant if the policy you hold on your automobile is inadequate to handle the law suits coming your way not to mention the repair of your vehicle.

    A few days ago a client was struck a glancing blow on the right rear of his car while stopped at a signal light. The car then proceeded to hit the expensive car stopped alongside my clients, pushing that car into a small car with two children on board which then rolled forward and knocked over and ran over a motorcycle operator. The driver who started this mayhem is not thinking about how much he paid in premiums, he is thinking about how much the company is going to pay in the costs that will come next. Incidentally, two people left the scene in ambulances and others were undoubtable injured.

    The way to have the cheapest automobile insurance is to secure the services of a competent insurance agent. The agent will listen to you, provide sound financial advice and communicate clearly with you and with the insurance company. In the end the agent will guide you to appropriate limits. These limits will determine how well the insurance company performs when you have an accident. Regardless of which company the agent and you agree upon, the real test is going to be how well the company performs when you have an accident.

    There are two other fallacies that affect an automobile insurance purchase. The first is the idea of “legal limits.” If you purchase automobile on the basis of the limits required by law you may well bankrupt yourself when you have an accident. Those limits can handle some accidents but certainly will stop paying long before the bills stopping coming if the accident involves much personal injury or the car struck is expensive.

    The other fallacy is “full coverage.” Most consider full coverage to be enough to satisfy the state requirement and enough to satisfy the lender. While keeping those entities satisfied you are still assuming too much exposure personally. Your company could run out of money before everyone is satisfied. Then they will sue you directly.
    Answered on October 7, 2014
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