Dec 2009
3
Going After Quality
Believe it or not, getting the best quality insurance policy can save you money. Why? Because insurance companies with higher customer satisfaction rates actually pay claims instead of fighting you. If you could not afford to have your claim denied if your car was totaled in an accident or stolen, this is the way to go.
There’s a good reason why insurance companies get a bad reputation. Most of them down right stink. But one company has won the JD Power Customer Service award ten years in a row and that’s Amica. Having spent 5 years working as a claims representative for the company, I can tell you personally that they really do pay claims where other companies would just stop returning your phone calls. The other national company that comes close is USAA insurance, which is a company reserved for military personnel.
Going After Rates
While Amica also received very high ratings for its low premiums, they are not the cheapest insurer you can find. Shelter Insurance and Ameriprise also have very competitive rates. Sometimes you can go with companies like Geico and Liberty Mutual who offer low rates for a six-month policy. You just have to be sure you check on rates again at the six-month mark before your rates go up. Check the bottom of this article for resources to help you compare insurance companies for both quality and premium rates.
When You are Buying a New Car
When you are researching your next car purchase, make sure you look into the insurance implications. You can get the lowest insurance rates by selecting a car that is insurance friendly. This means you need to look at production history, horsepower, theft rates and safety ratings.
How long a car has been in production is an important factor when shopping insurance. When no historical crash data is available, insurance companies use the list price to figure out what they should charge you. This can work to your advantage on an economy car, not so much on a pricey BMW. A general rule of thumb is that cheaper cars cost less to insure.
Horsepower is another biggie when it comes to insurance rates. Vehicles with more powerful engines are usually driven faster, making them more likely to both be in a crash and cause greater damage to other cars. This raises the rates for liability and collision coverage.
Theft history is just as important as horsepower to insurance companies. Car models that are susceptible to theft will have higher comprehensive (sometimes called “other than collision”) insurance prices. These are the flashier cars like the Cadillac Escalade. Not only does buying a high-theft vehicle cost you more, it’s just one hassle you don’t need.
One more thing to consider when new car shopping is the safety rating. Obviously, this is important to you for your own safety, but it’s also important to insurance companies. Safer cars generally cost less to repair and are much less likely to be stolen than flashier vehicles. Think family cars like mini-vans. It’s no wonder that among the ten cheapest cars to insure, most of them are family cars.
Because insurance rates are always changing as new vehicle models and crash statistics are published, you need to rely on the most recent research. When you look for the cheapest cars to insure, check the date of the publication and get your information from the most recent and reliable sources you can find. If you have narrowed your choices to just a few cars, get specific quotes on those cars from at least three insurance companies before you make you purchase decision.
Resources:
Insurance Institute for Highway Safety
Jessica Bosari is an Internet copywriter and blogger for various publications and her own blog. You can read more of Jessica's work here.
©2009