Car Insurance

It has never been more important to shop around to get the best insurance deal.

The price war, which has seen car insurance premiums fall by 20 per cent in the last two years, is now denting profits.

And all the indications are that firms can’t hold out much longer before passing on costs to the customer.

“Intense competition has forced premiums down to a level that is unsustainable,” said Sandy Dunn, managing director of Touchline Insurance. “Some insurers have pulled out of the motor insurance market completely while others have seen their profits slashed. Premiums are starting to rise already.”

Over-the-phone insurers Direct Line helped spark off the cut in premiums…but even they have experienced a fall in profits.

And Mr Dunn believes home owners as well as motorists will have to pay more.

Claims for weather damage, subsidence and fires rose by pounds 200million to more than pounds 800million last year.

Analysts expect them to rise even further, with the winter freeze after last summer’s heatwave taking a further toll on homes.

The more pay-outs insurers make, the more likely premiums will go up as they struggle to recoup their costs. In trying to get the best deal, it’s worth remembering that you no longer have to take the house insurance offered by your mortgage lender.

Some insurers now offer “no claims” discounts on home insurance as they have been doing for years on car premiums Legal & General are one of the latest with their new Rainbow home plan.

After a year, policyholders get a 10 per cent discount if they haven’t made a claim, which rises to 15 per cent after two years and to 20 per cent after three years.

Direct insurers Churchill offer a 30 per cent discount. To qualify, you’ll need five claim-free years.

Before the Internet came along the only way you could compare auto insurance prices was to spend half a day going to insurance offices, or calling insurance agents, to get enough quotes to get a good rate.

Now all it takes to get a cheap auto insurance rate is to spend a couple of minutes online in the comfort of your home. You don’t even have to spend time surfing different insurance sites because there are insurance comparison sites that will allow you to get rates from different companies all under one roof.

All you do is fill out one online questionnaire to get multiple quotes from different top-rated auto insurance companies in your area. It’s fast, it’s easy, and it’s free.

How to Compare Auto Insurance Prices Online

Here’s how to compare auto insurance prices online quickly and easily …

1. Be aware of the discounts you can get. The top three ways to save money on your policy are:

* Raising your deductible - this can save you $500 or more on your insurance.

* Dropping your collision coverage if you have an older car.

* Dropping medical coverage if you’re covered by medical insurance.

2. If you have a policy, have it handy so you can refer to it to answer questions on the online questionnaire.

3. After you choose the best insurance rate, check the company’s ratings at JDPower.com to make sure the company you choose is reliable and will give you good service.

4. When you get your policy read it over carefully to make sure you’re getting all the deductions you can, and all the insurance you need.

It is very important to compare auto insurance quotes provided online. The comparison is necessary to make sure that you are getting the lowest auto insurance quote. It is very easy to compare auto insurance quote, if you are doing an online search. Most of sites give you an opportunity to get three auto insurance quotes side-by-side for comparison.

No limitation is given for quotes; you can get as many quotes as you wish to compare one with another. Here are some simple tactics to compare auto insurance quotes.

1. First of all you have to fill an online form, to request free quote for the coverage you desire to include in your policy. Always compare auto insurance quotes for the same coverage.

2. Always remember that price is not the only criteria to approve any auto insurance. Try to know how long the company is working in the field of auto insurance. At the time of comparison, you will find that emerging companies offer lower quotes. This will be a great idea to ask auto insurance quotes from newer companies, but be aware while buying insurance from them.

3. If you have two accidents and/or 3 traffic rules violations in your account then it will be difficult for you to find cheap auto insurance quote. In such a condition you have to do an extensive comparison to find a good quote that suits your budget.

4. It will be better to make up your credit history before requesting for an auto insurance quote, as it will give adverse effect to insurance company. Company may offer you higher quotes. Thus it is not a recommended step for people with bad credit history.

5. It is better for you to start requesting auto insurance quotes in advance. If your insurance policy is nearing the expiry date you might face problem to get a cheaper quote. Start from current company, they might offer lowest quotes

When we think about how to compare car insurance prices, we usually think about finding the cheapest car insurance prices, right? After all, no one wants to pay a high price for insurance at Car Insurance Company A when they can pay a lower price for insurance at Car Insurance Company B. And with gas prices today, we all need to save money! However, the car insurance companies that offer the cheapest car insurance prices are not always the car insurance companies you should choose.

For example, imagine this scenario: George wants to pay $100 or less a month for his car insurance, so he looks for a car insurance company advertising that low price. He eventually finds one and immediately purchases the policy. Later, he discovers that the car insurance company has only been around for five years, it does not have a very high financial rating, and the customer service is lacking. Despite these negatives, Georges sticks with the car insurance company for a little while longer because he is happy only paying $100 a month for car insurance. Soon, George’s car insurance company goes bankrupt and leaves him without any coverage.

You see, when you compare car insurance prices, cheapness should not be your first priority. If George had decided on a price range he was able and willing to pay, rather than just searching for car insurance companies that would offer car insurance for $100 a month, his search would likely have resulted in many more car insurance companies, some of which would have been more financially established and secure with higher financial ratings.

So, when you begin your search to compare car insurance prices, make sure you not only search for car insurance companies that offer cheap prices, but search for companies that have been around for a while, are financially secure and having high financial ratings to prove it, and have helpful customer service.