Shop around for your car insurance to save BIG money.

I'm sure you've seen that TV commercial where the guy's calling around to the car insurance companies repeating umteen times "Can I have a quote please...just looking for a quote" and wasting his whole day.   It's boring and tedious work…sure, but was he really wasting his day?

Probably not if you consider that for the same basic coverage you can get several quotes for car insurance that could range in a spread of over $800 or more per year. 

When's the last time you made $800 for a days work at your job?  

Yeah, now we're talking, I knew that would grab ya.  If you want to find out how you can save big money too, then read on; you'll learn a few other interesting things in the process as well.  

You'll even own bragging rights to your family, friends and neighbors.  

…What you need to consider is types of coverage, competitive quote, consumer complaints and discounts.

Here’s how to choose a car insurance company that's right for you.

OK, so, which business delivery model fits your personality?  Basically there are three types of delivery models: direct to consumer, broker and agent with some alternate variations to the twist.  

Here's the basic differences of each and some of the major players:

• Direct to consumer - this can be through an 800 number or via the Internet or both.  Places like Geico and Progressive will provide you a rate quote for their car insurance with competitor’s rates for comparison.  Visit geico.com or progressive.com for further information.

• Insurance broker - a traditional insurance broker is someone you call to discuss your insurance needs with and he/she recommends level and type of coverage, one or more possible car insurance companies that meet your needs, discusses their strengths and weaknesses, quotes their rates, and helps you decide on the provider that best meets your requirements.  

• Insurance agent - an insurance agent represents only one insurance company.  Your old school insurance companies, such as Allstate, Nationwide, State Farm, etc. are all set up to do business the old fashioned way -- through a representative agent.  

Steps you can use to choose a car insurance company.

• Contact your states DMV.  Find out how much car insurance coverage you're required to carry according to your state's department of insurance and determine which types of coverage you'll need. 

• Shop around for car insurance quotes based on what you've determined you need, not what insurance companies say you need.

• Ask if they offer discounts for such things as air bags, antilock brakes, automatic seat belts, antitheft devices, safe driving record, safe car, age, marital status and multiple insured vehicles and multiple insurance policies home, life, etc.

• Ask the carrier if filing a claim raises car insurance premiums, and under which circumstances it cancels insurance.

• Research prospective insurers. To learn how the car insurance company's service is regarded:

• Are they customer service oriented?  Do they respond quickly to a car insurance claim and get you back on the road with minimum hassle to you.

• Talk to auto repair and body shops in your area to find out who they do/don't recommend dealing with and why.

• Do they work directly with the auto repair and body shop for repairs and payment?

• Do they make it easy for you to contact them by phone, Internet, office location, etc?

• Do they offer different payment methods via phone, online or invoice through the mail?

• Are they flexible in their payment plans offering monthly, quarterly and semi-annually payment options?  Be careful they don't charge you a fee for the ease of a monthly payment.

• Read your policy thoroughly before signing, and make sure it includes the coverage you've requested with no surprise clauses. Avoid arbitration clauses that keep you from suing your insurer if it doesn't pay a claim by asking the insurer to delete it from the contract.  Go to another insurer if they won't.

Here’s what the car insurance techno-babble means.

The basic types of coverage include:

• Liability - There are two types:

• legal fees (if you're sued),

• medical bills, and

• lost wages of the other person if you are at-fault.

• Uninsured motorist bodily injury coverage

• Underinsured motor vehicle bodily injury

It may seem like a good idea . . . until you have an accident.

• Medical payments

• Collision

• Comprehensive

You should know the limits to your coverage.

The amount and type of car insurance you choose has a lot to do with the cost.

When it comes to liability insurance, the car insurance company will only pay so much per person, per accident.

The other basic car insurance coverages have limits, too -- and higher limits mean higher premiums.  
You have to strike the right balance between car insurance coverage and premium payment to achieve adequate, affordable coverage for your personal circumstances.  

A general rule is to obtain enough car insurance coverage to cover against any potential loss of personal assets.  

You usually here limits expressed like this: 50/100/25.  What this means, for example, is that the limits may be "50/100/25", which means your insurance company will pay up to $50,000 if one person is injured or killed, $100,000 if more than one person makes a claim and up to $25,000 in property damage.

Here's some ways for you to reduce your premiums.

• Shop around. Get quotes from different types of car insurance  companies. Some sell through their own agents. Some sell through independent agents who offer policies from several insurance companies. Other companies sell directly to consumers over the phone or via the Internet. The price may vary depending on the sales method.

• Compare car insurance costs. Your premium is based in part on the car’s sticker price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft, such as air bags, anti-lock brakes, daytime running lights and anti-theft devices.

• Ask for a higher deductible. Your deductible is the amount of money you pay out-of-pocket before your car insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage premium by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more.

• Reduce car insurance coverage in older cars. Consider dropping collision and/or comprehensive coverage on older cars. It may not be cost-effective to continue insuring cars worth less than 10 times the amount you would pay for coverage. Any claim payment you receive would not substantially exceed your premiums minus the deductible.  Claims occur on average only once every dozen years.  

• Multiple policy or vehicle discounts. Many insurers will give you a discount if you buy two or more types of insurance from them. Also, you may get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce premiums for long-time customers

• Group insurance. You may be eligible to get car insurance through a group plan from your employer, or through professional, business and alumni groups or other associations. Group plans often provide substantial discounts. Ask your employer, or any groups or clubs of which you are a member, about this option.

• Safe driver discounts. Most car insurance companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also qualify for a cut if you have recently taken a defensive driving course, if you are over 50 and retired, or if there is a young driver on the policy who is a good student, has taken a drivers education course or is away at a college, generally at least 100 miles away.

• Do you really need car rental or towing included in your car insurance coverage? The answer is no if you're a member of AAA or another car club, or you decide to just take the chance and rent a car on your own if the need arises.

• Check to see if your personal health insurance pays the medical bills if you or a covered family-member passenger is hurt in a car accident before agreeing to the auto insurer's medical insurance.