Auto Insurance - Shop Around
Monday December 1, 2003
The Arizona Department of Insurance offers valuable tools to help consumers
understand automobile insurance products and to be informed shoppers who can
take advantage of competition for their business. The Department just
issued the latest edition (Fall 2003) of its "Automobile Premium Comparison
Survey". In addition, the Department publishes "A Consumer Guide to
Automobile Insurance".
Automobile Premium Comparison Survey
"More than 130 insurance companies actively sell personal automobile insurance in our state, and there is a wide range of products and prices available. This competition among auto insurance companies in Arizona is good for insurance consumers," said Director of Insurance, Charles R. Cohen. "We publish the Auto Premium Comparison Survey to illustrate the wide range of companies and prices available in the automobile insurance market to encourage consumers to comparison shop and to give them the opportunity to turn the competition to their advantage."
Prices vary dramatically between companies. It pays to shop around. The publication several useful features. First, premiums are quoted by 61 insurers for 12 hypothetical insureds of various ages (ranging from age 21 to 79), driving records and vehicle use, and for 10 cities throughout the state. The 61 insurers that provided price quotations contained in this 17-page publication represent over 50% of the personal automobile insurance market in Arizona.
By finding the hypothetical driver that most closely matches your circumstances, then picking the city closest to your residence, a consumer can get an idea of how different insurers might price a policy for a similarly situated driver. Of course, the actual rates will depend on your individual situation.
The publication also includes information describing basic insurance coverage. "Insurance is a complex financial product. The complicated verbiage of an insurance policy can be challenging," said Cohen. "That's why we include a summary of the different kinds of auto insurance coverages in this publication. It provides fundamental information about an automobile insurance policy to help consumers better understand the product for which they are shopping. It is easier to compare the product from one insurer to another if you are familiar with the various policy features."
It is important for consumers to consider service as well as price. Therefore, the final component of the publication is complaint ratios. The complaint ratios represent the total number of written complaints regarding auto insurance received by the Department for each 1,000 exposures an insurer has in force in Arizona.
A Consumers Guide to Automobile Insurance
This pamphlet contains essential tips on how to shop for insurance, including what money saving discounts to ask about, explains why people should buy automobile insurance, what kinds of coverage are required, and what to do if you cannot obtain insurance.
To obtain any of the Department's free publications, many of which are available in Spanish, visit their website or call at (602) 912-8444 in Phoenix, or statewide (800) 325-2548.
Automobile Premium Comparison Survey
"More than 130 insurance companies actively sell personal automobile insurance in our state, and there is a wide range of products and prices available. This competition among auto insurance companies in Arizona is good for insurance consumers," said Director of Insurance, Charles R. Cohen. "We publish the Auto Premium Comparison Survey to illustrate the wide range of companies and prices available in the automobile insurance market to encourage consumers to comparison shop and to give them the opportunity to turn the competition to their advantage."
Prices vary dramatically between companies. It pays to shop around. The publication several useful features. First, premiums are quoted by 61 insurers for 12 hypothetical insureds of various ages (ranging from age 21 to 79), driving records and vehicle use, and for 10 cities throughout the state. The 61 insurers that provided price quotations contained in this 17-page publication represent over 50% of the personal automobile insurance market in Arizona.
By finding the hypothetical driver that most closely matches your circumstances, then picking the city closest to your residence, a consumer can get an idea of how different insurers might price a policy for a similarly situated driver. Of course, the actual rates will depend on your individual situation.
The publication also includes information describing basic insurance coverage. "Insurance is a complex financial product. The complicated verbiage of an insurance policy can be challenging," said Cohen. "That's why we include a summary of the different kinds of auto insurance coverages in this publication. It provides fundamental information about an automobile insurance policy to help consumers better understand the product for which they are shopping. It is easier to compare the product from one insurer to another if you are familiar with the various policy features."
It is important for consumers to consider service as well as price. Therefore, the final component of the publication is complaint ratios. The complaint ratios represent the total number of written complaints regarding auto insurance received by the Department for each 1,000 exposures an insurer has in force in Arizona.
A Consumers Guide to Automobile Insurance
This pamphlet contains essential tips on how to shop for insurance, including what money saving discounts to ask about, explains why people should buy automobile insurance, what kinds of coverage are required, and what to do if you cannot obtain insurance.
To obtain any of the Department's free publications, many of which are available in Spanish, visit their website or call at (602) 912-8444 in Phoenix, or statewide (800) 325-2548.
Comments
Although most people know that there are factors that affect what they eventually pay, they do not really understand how they work for or against them.
Furthermore, Although all insurance companies basically use the same factors in calculating a profile’s risk and, by extension, the rate they are charged, they all have different weightings for each of these factors. Therefore, the only way anyone can ensure they are getting the very best rate for their profile is if they do [link deleted by moderator] extensive shopping for auto insurance quotes from five or more reputable quotes sites.
If you can get quotes from all the top rated insurers in Phoenix then you’ll be certain the you have the right data for choosing the best price to value ratio.
I got one of these surveys in the mail and just so you know it was one of the most confusing surveys I’ve filled out.