When shopping for insurance, make sure you compare apples to apples.
Although companies must be licensed in the state of Arizona in order to provide automobile insurance, no two companies are the same. Each company may approach underwriting differently. Before you select the company you’re going to insure your car with, do some research.
Here are a few underwriting factors you should take into consideration:
1. Young Drivers: Find out how each company handles young drivers. Will they offer a discount for high schoolers with good grades? How much of a discount is offered for driver’s education classes. Although each company may offer a discount, if you have a young driver on the policy you should find this out in advance.
2. Where are your other coverages? If you have a homeowner’s policy or renter’s policy, find out how much of a discount each company will provide if you offer to move your homeowners policy to your automobile carrier. Most companies will offer a multi-line discount, but each company’s discount may differ.
3. Direct or Agent: Purchasing insurance from a direct insurance company is usually cheaper than approaching an insurance company through an agent. Direct writers do not have to build the insurance agent’s commission into the premium charge.
There are pros and cons for both. Although you may get a cheaper rate with a direct writer, you lose the expertise and experience of an insurance agent who can help you understand your insurance policy and suggest coverage improvements.
You have to decide which is more important money or experience.
There are many factors to consider when shopping for auto insurance. If you’re purchasing a new car, start your dialogue with a few insurance companies before you select your car. If you are unhappy with your current insurance carrier, start shopping for a new one at least 45 days prior to your current policy’s expiration. You want to get as much information as you can.