You don't need a talking gecko or a chatty saleswoman in a cyber-store to figure out that you can save money by shopping around for car insurance.
Whether you will save money - and how much you'll save - depends on your specific situation, including what cars you drive, your age, where you live, your driving record and in many cases even your credit score. And it may take a bit longer than 15 minutes to figure out.
Luckily, the Arizona Department of Insurance (www.id.state.az.us) provides some resources to help consumers shop for car coverage - no geckos required.
Premium surveys
- Twice yearly, the Insurance Department publishes surveys of auto insurance premiums offered by state-licensed insurers, based on a dozen hypothetical consumers in different cities, including Tucson, with different ages, marital status, coverage levels and other variables.
- For a copy of the latest survey (September 2010), go to www.id.state.az.us/autopremium.html or call 1-800-325-2548.
Using the survey
Your actual insurance rates depend on your specific circumstances, so you'll need to get formal quotes from prospective insurers (preferably in writing).
But you can narrow down your choices by looking at a hypothetical policy in the survey that approximates your situation.
Savings can be substantial. In the most recent survey, six-month premiums for a 42-year-old, married Tucson couple insuring a 2010 Ford Taurus sedan and a 2008 Ford Explorer (with state-minimum coverage limits) ranged from $383 for a policy from GEICO (Government Employees Insurance Co.) to $1,040 from Arizona market-share leader State Farm Mutual Auto, to more than $1,500 for coverage from about a dozen companies (some of which may be primarily focused on other segments of the market).
Which company or agent?
- Some insurers operate two or more companies, placing the lowest-risk customers in "preferred" affiliates while offering coverage to others through affiliates that share part of the same name.
- Some companies sell policies directly online or use agents who sell only for affiliated companies. Independent insurance agents typically write policies for several different companies, allowing them to comparison-shop for your policy.
- Within the first 60 days a policy is in effect, an insurer may cancel your policy for any reason (after 60 days, an insurer can cancel only for certain specific circumstances, like non-payment).
- Be aware that if you switch insurers, you may lose certain discounts (such as a multiple-policy discount) you have with your current insurer. Weigh any discounts a new insurer offers against discounts you would lose.
- Some insurers entice consumers with special "new customer" discounts. Ask if your premium includes such a temporary discount; if it does, ask how long it lasts and what your premium will be when the discount expires.
