Help a Reader: Buying Car Insurance

Here are some questions a reader recently sent me:

When purchasing auto insurance, I tend to just shop online and secured the lowest rates for my coverages.  I would assume most readers would do the same thing.  However, purchasing insurance through an agent is a common practice too.  For those that purchase insurance from an agent, why did you choose this decision, and do you feel any loyalty to the agent?  Would you change insurance coverages if the rates increased?  How long have you stayed with an agent?

What advice do you have for him?

Comments

[MattJ]

I tried checking online for car insurance rates, found that the rate offered didn't beat my current rate, and to this day I still get junk mail from that company telling me how much I can save with them. It's turned me off the process of sharing my info online with car insurance companies.

As for how I chose an agent, I really didn't. I chose an agency, and typically use the agent closest to my home. I feel no loyalty to that agent.

It's been my experience that rates don't increase (no doubt they would if I experienced an accident). They decrease a little every year because the property being insured (an automobile) becomes less valuable every year.

[Roy]

I think the Agent is more important than the brand. Once you find your Agent shop arond for comparable coverage and if your Agent isn't the lowest or close to it see if he can match it.

[jim]

I used an agent before who was recommended by a friend of mine. They did a good job getting me a policy that was cheaper than I could find online. I also had good recommendation that the agent and the insurer were dependable and would actually pay claims rather than argue and nickel and dime their customers. My experiences shopping for auto insurance online have not be too great, the rates didn't seem that good compared to what I found via local agents. Now we're with Amica and very happy with them due to excellent service, though they aren't the cheapest but they are a mutual.

[Mike B.]

Used an agent from my BIL for a long time and then as my income decreased, I had to go to lowest bidder for car insurance (which was significantly lower). Then, I had a claim on my home and really needed help and tried to get it from the agent. He was almost no help. Then I switched my home insurance as well. It's now less expensive and more coverage. For me, I'll never get an agent again.

That being said, IF my agent had been helpful during the home claim, it would have been worth the extra money. When your claim gets thrown around from adjuster to adjuster internally, it would have been nice to have someone keeping track of it all and maybe pressuring them from the inside for my benefit. That was what I thought would happen, but didn't.

[Old Limey]

I'm a long time State Farm customer, here's why I get a really good rate on my car insurance.
I have total coverage on two vehicles.
A 6 month policy on one of them, my 1991 Mercedes 560SEL, is $256.36.
The other car, my wife's 1998 Mercedes 230C, is $40 cheaper.

It's low because of these reductions:
Multiple line $72.30
Multicar $60.97
Driving safety record $308.29
California Good Driver $64.08
Loyalty $56.27

This is one reason why I wouldn't switch to another company. The other reason is that I also carry an Umbrella policy and my Homeowners with them and the Umbrella requires that all of your insurance is held by one company.

[Matt]

It pays to shop around every couple of years. Rates have a tendency to go up and to keep things in check you need to compair. I switched when I saved over 50%. That was before I compaired every 3 years.

Bundling all your insurance needs (auto, home, term life)helps lower overall cost.

[John]

I have used USAA exclusively since 1986. They have great customer service and offer bundling discounts (home and auto insurance).

[Holly]

USAA did not always offer the bundled discounts (I asked, they said, 'no') and I have found their rates are still a bit higher than other reputable insurance companies. I had been overpaying w.USAA for a l-o-n-g time (14 yrs.) until I checked the internet for deals and switched two years ago (saved a LOT!). I did have an accident and my new 'discount' policy served me well.

You are doing yourself a disservice if you remain agent-loyal and fail to compare prices and neglect to research all of the discounts for which you may qualify.

[Paula1849]

I am also a State Farm customer. I had a wonderful relationship with my agent in another state who took very good care of me when I was a poor single mom. When my soon to be husband's insurance dropped him when he had one last month on his internship, my agent got him covered even though we were moving out of state and would no longer be customers.

Because of that service we checked out the local State Farm agent here. Not only did he beat the other insurance quotes, I have had an excellent relationship with them for 14 years now. Annually we go over my policy and last year they were able to get me more coverage for less money. Throw in the multiple discounts I get with having my house, cars, and good driver and we are pretty happy. I know that when I have a claim they have fought for me.

It is why they continue to get my money and I stay with them. Cheap is good but not if it doesn't pay when you need it.

[JimL]

I work for a large company and we have a special discount program with two different insurance companies for our Auto/Home/Umbrella policies. The quotes were at least 25% lower than anything else I could find on the internet as well as with local agents. When shopping for competitive rates, I found that the internet quotes were better than quotes through the local agents.

[Jeff]

In my experience it is cheaper getting quotes online. Some of the bigger companies offer discounts when ordering online, because it is less work for them. But to be safe you could compare quotes online, pick the best offer and try a local agency to see if they can match it or do better.

[KH]

I use a local Travelers' agent--they offer discounted rates on auto ins through a payroll deduction deal with my company, and they'll additionally bundle discount home+auto. Good service from a real person too when I call about something.

[Christy]

I got shopped around and got the quote online, then chose a local agent. I like having an actual individual to call with questions or problems, which is my #1 reason for choosing a local agent.

[Steve Smith]

I have noticed that calling an agent will definitely get you more information and more access to discounts. Computers don´t like to negotiate, which is no good for me especially with two teenage boys needing insurance. Getting cheap young drivers car insurance is about talking to brokers and asking the right questions.

Steve