Make Auto Insurance Companies Work for Your Business

Written by Clive Bristol

Finding the best coverage at the best rate can be difficult. As population and the number of uninsured drivers grows this becomes even more difficult. However, you do not have to settle for the first company that you find. In fact, you can make insurance companies ‘compete’ for your business.

Where to start

Before you can shop for auto insurance coverage, you need to consider just how much coverage you need. Consider as many factors as possible. If your vehicle is financed, you don’t really have a lot of options. Full coverage insurance is required as long as you are making payments. However, if you do own your vehicle, there are some factors that you can consider.

Do you have medical insurance? If not, you may want to add a no fault medical payment component to your policy. This will insure that your medical expenses are paid, no matter who is at fault for the accident.

Where do you live? If you live in a metropolitan area, you may consider carrying a higher amount of coverage, including underinsured and uninsured motorist. Your risk of getting in an accident is much higher than an individual that lives in a small town or rural area. If you live in a rural area, you may find it difficult getting fair insurance prices from big name companies. You may fare better by exercising some of your local insurance carriers.

How much is your vehicle worth? If your vehicle is paid off, considering this variable can help you to determine if full coverage insurance is worth the cost. If you have a paid off sports car that is worth a substantial amount of money, full coverage insurance will be more than worth the extra cost. However, if you own a small two door sedan that is thirty years old, you will probably fare better dropping the full coverage and carrying liability and possibly no fault medical.

Obtaining quotes

Now that you know how much coverage you need, you can start to look for auto insurance quotes. Consider as many companies as you can, starting with some of the higher name companies. If you have anything against you like a previously suspended license, multiple tickets, bad credit, or poor payment history, look for companies that specialize in these departments. They can offer you the best rate.

You will also want to ask about any discounts that an insurance company has to offer. These discounts can save you substantially on your monthly premium. There are discounts for multiple drivers and multiple situations. Even if you have a bad driving record, you may be able to qualify for a defensive driving course to lower your premiums. Discounts can be offered for your status in military, for being a student, for having a good driving record, for carrying insurance on your home and car through the same company, or even for allowing automatic payments.

Start comparing

Now that you have your insurance quotes, start to compare the prices and the coverage offered at that price. Carefully evaluate which company has the best coverage for the best price. While you might find a company with a low price, they may not be offering you the same amount of coverage. The same is true when looking at the most expensive price. A high premium does not always constitute the best coverage.

Making the companies work

Once you find the very best quote, take your quote down to your local auto insurance broker. Auto insurance brokers gain a commission for signing you up on insurance and if you have a quote in hand, they will do their very best to beat that quote. They are knowledgeable about insurance companies that aren’t as well known. They also know the companies that can be haggled with.

If your insurance broker cannot beat your price, don’t settle just yet. Find another broker and repeat the process. Different brokers work with different companies so you may be able to find a better quote just by changing brokers.

Looking towards the future

If you had a hard time finding a decent quote based upon penalties from your past, start looking towards the future. Carry insurance at all times to avoid penalties for coverage lapses. If you have bad credit, start paying off bills and paying your bills on time. If you have multiple tickets or accidents, take a defensive driving course and change the behavior that is causing this problem. If you just happen to have a sports car, consider selling the car and getting one that is more reasonable in terms of auto policy pricing.

To sum it up

No matter what your situation, you don’t have to settle on your auto insurance policy. However, by caring for your future and moving in the direction of a lower risk driver can help you to find rates that are more affordable and offer you better coverage.