Does it make sense to comparison shop for auto insurance?
A. Dont assume that all insurance companies charge the same rates. There are several thousand different auto insurers in competition. You can save from 30 to 50 percent by comparing costs. Costs are usually based on factors such as the age, gender, and driving record of the vehicle s driver’s); the state of residence; the age and value of the vehicle; and the frequency and purpose of the vehicle s use. First, contact the insurance regulating body in your state and find out whether they provide a free pamphlet that ranks insurers by price. Many state insurance departments do this. Obtaining this pamphlet will save you a lot of time on the phone asking for price quotes. If no pamphlet is available, get quotes from independent agents (those who represent several insurance companies) as well as from “direct writers.” Direct writers sell directly to the public and not through agents. You may save about 10% because you’re not covering an agent’s commission. Begin by comparing these insurers’
