Smart Auto Insurance Blog

According to the article “60% Use Comparison Websites” from the Press Association found on google.com, 6 out of 10 people have used a price comparison site to shop around for financial services. 

Research completed by market analyst Mintel, shows that 52% of people have used the internet to shop around for car insurance quotes, while only 32% are using it for home insurance.  12% of people use websites to search for travel insurance as well. 

Interestingly enough, other financial services aren’t not as popular online.  Only about 3% are using the internet to search for current accounts and loans, and 4% are using comparison sites for life insurance quotes.  11% are shopping online for the best savings account and 9% are using it for credit cards. 

The head of finance at Mintel, Toby Clark, believes that the appeal of comparing prices online is clear.  These types of sites give consumers the opportunity to save time and money by getting multiple quotes at once to compare instantly.  These numbers may very well increase substantially over the next few years.

That Motown classic was right: you better shop around, especially for Delaware auto insurance. KYW-TV’s eye-opening study shows how there can be wild swings in premiums between companies. Everything else can be exactly the same! Some examples:

A couple and teenage son in Wilmington, with one accident on their record can pay…

• $4,528 per year with Progressive Insurance
• or $2,776 per year with a Liberty Mutual quote

They would save hundreds of dollars per year by switching their insurer! What about basic coverage for a couple in Landsdale, Delaware? They could pay…

• $2,643 per year with Nationwide Insurance
• or just $1,054 per year with a Travelers Insurance quote.

As you can see, the savings could be substantial; especially important during these tough times. Unfortunately, research has found that most consumers don’t compare auto insurance before they buy a policy, and don’t often switch policies.

Brooke Thatcher from KUSA reports that the number of drivers without Colorado auto insurance is growing, from an already shocking 15% in 2007. The economy is causing people to cut back on car insurance, but doing so could be more dangerous to their finances in the long run. If you get into an accident while driving uninsured, your income and assets could be garnished!

Thatcher suggests safer ways to save money on auto insurance:

• Raise the deductibles for comprehensive and collision coverage, and or/lower their coverage limits. (However, don’t skimp on uninsured motorist or liability coverage.)
• Talk to your insurance provider; they may be willing to help you modify your plan.
• Get auto insurance quote comparisons from several companies, and see if you can get a better deal on your rates.

According to Jeffrey Krasner in the Boston Globe, Progressive Insurance’s website recently showed incorrect comparisons with other auto insurance companies, making their rates appear cheaper than they really are. A computer glitch compared the price of Progressive’s 6-month policy with 12-month policies from Commerce Insurance or Liberty Mutual. (Unlike most Massachusetts auto insurance companies, Progressive sells policies in 6-month increments.)

Progressive spokesperson Cristy Colt stresses that they weren’t intentionally trying to mislead consumers; rather, the system is meant to divide competitors’ prices in half to show fair auto insurance quote comparisons. For now, the rate comparison tool on their website is down, and Progressive is sending letters to inform about 21,000 consumers whose decisions may have been affected by the error.

(Photo credit: wallyg under CC 2.0)