TheTechGeek Bargains

Recently, a friend of mine was asked by his parents to start paying for his own car insurance. After weeping in his room for a week, he came to me and asked who I was insured by. Having recently gotten quotes for my newly purchased Dodge Ram diesel, I answered proudly that i got AAA because it was half as much as the other quotes I received. I told him he should check them out because they are the cheapest. After doing so, he spent another week in his room, sobbing quietly. After coming out of his room, and wiping his red puffy cheeks clear of crusted brine, he told me that there was no way he could afford the $2385 that was quoted to him by AAA. It turns out that finding the right auto insurance is more of an art form than a science. What was cheap for me, was nowhere near the mark for him. For my truck, AAA wanted around $700 every 6 months. For him, it was over triple that amount. After comforting him, and assuring him that life will go on, I told him I would look into finding him a good deal.

As I researched insurance, it became clear to me that, while insurance companies offer a variety of perks, such as roadside assistance, or accident forgiveness, the costly portions of an insurance policy were all the same. Here are the details for the quotes I researched:

Driver: 24 year old Male, started driving when 22, and drives a 2008 Mazda 3.
Insurance companies do not like my friend (as well as he does not like them) because he is a young driver, and because he is an inexperienced driver with only 2 years under his belt. In the state of California, it is illegal for auto insurers to charge more for young drivers. They make up for this, however, by charger more for inexperienced drivers. Laws like these vary between state to state. You residence can play a big role in your premium. Also, my friend drives a relatively new car that is still being financed. It is more costly for auto insurers to replace or repair newer cars, so they charge more for this too.

Bodily Injury Liability: $100,000/$300,000
This means that my insurance company will pay $100,000 per person injured in a car accident determined to be my fault up to a maximum of $300,000. The cost for bodily injury goes up rapidly as you increase coverage and is one of the most costly parts of an insurance poolicy.

Property Damage Liability: $100,000
This covers any damage done to a car, cars, or other property if you are determined to be at fault in an accident. This is also a high ticket item for insurance.

Collision Deductible: $1000
This is the amount you will have to pay before your insurance starts to pay the bills. If you cause $10,000 of damage in an accident, the you will pay the first $1000 in repairs. The higher you select your deductible, the lower your premiums, but you take the risk of not being able to cover deductibles when an accident does happen.

Comprehensive Deductible: $1000
Comprehensive covers non accident related damage to your vehicle. Usually this is limited to theft and vandalism and does not cover weather damage, or acts of got. You will pay the first $1000 in repair/replacement costs.

Other options for insurance include rental reimbursements, uninsured motorist coverage, and excess medical bill payments and more. The costs for these, however, are relatively small, and provided added security. In my opinion, they are worth the extra $80 (averaged from all quotes) premium.

Using this informtaion, here were the results for 6 months of coverage:
21st Century:$1,899
Allstate:$1,575
GEICO:$2,707
Farmers:$4,671.20
AAA:$2385
Esurance:$1,971
Safeco:$2,019
Unitrin: $1,598
Progressive: $1,586
Liberty Mutual: Refused To Insure (not a “California Good Driver”)

As you can see, in my friends case, Allstate wins out. In my case, with my 6 years extra driving experience, AAA won out.

It is important to know that many companies offer discounts based on you employment/student status, and other criteria. For the most part, I, as a student, received discounts for being a B average or better student. However, the discount was rather insignificant and amounted to perhaps a fast food meal every 6 months. Again, some may get more. Also, Geico offers Military discount. I am not sure, however how much it helps. Also available exclusively for the Military is the USAA auto insurance program.

I know that it can be a pain to fill out form after form with the same information over and over again. If you don’t mind doing things the old fashioned way (over the phone), you can go to one of theese two companies:

Kanetix
Quote Free

They do not give you a quote instantly on the net. Instead, they take your information all in one place, and forward it to insurers servicing your geographical area. Those companies will call you and speak with you about your quote. Being TheTechGeek that I am, I hate doing things over the phone. Awkward breathing, and waiting, and getting a sweaty ear is just not for me.

For those who decide to shop around for insurance, I hope that this has been helpful. I am curious as to how other states and rates compare to my findings so I invite anyone to please, reply to this thread and let me know you age, car, experience, and where you found the cheapest insurance.

Good Luck in your endeavors and stay tuned for more shopping adventures!