Why You Don’t Need An Insurance Agent To Get Cheap Auto Insurance Quotes

It seems natural to expect that companies we do business with repeatedly will value our continued patronage and give us competitive prices. Unfortunately, many auto insurers have learned that most of their clients will just automatically renew their policy year after year without getting quotes. The result is that some of these insurers actually give their best rates to entice new clients to become clients. These insurers then gradually raise their rates each year.

In addition, if you have had a ticket or an accident in the last few years and your rates were raised as a result, many people assume that their insurer will automatically reduce their premiums once the 3 year anniversary has been passed. This is frequently not the case-as insurers do not look for excuses to lower your premiums-it just isn’t in their best interest to do so. Instead, it is up to you to keep these insurers competitive by getting quotes and changing insurers when it makes sense to do so.

While it may seem more convenient to use an insurance broker to get competitive quotes, there are a number of reasons why using an agent may not be the best way to get cheap auto insurance. First of all, to get the best auto insurance rate, you should compare at least 5-10 companies (and even more is better). Many insurance agents only represent 1 provider. Most brokers will check just a couple of providers, hardly enough to make sure you are getting good rates. In order to get the highest number of quotes, you should use an online car insurance quote website. With a good website, you will have to enter your information once and then the website will send the information out to a large number of insurance providers. This way, you can get a good number of quotes quickly.

Secondly, it is important to remember that insurance agents work for the insurance company – not for you. This sometimes becomes very clear when you have a claim. Insurance companies are in the business to make money and much prefer to take your money than pay you for a claim. With the advent of the internet, insurance agents have become somewhat superfluous. Insurance companies hire them to go out and get new clients, but they really provide little value to you- the consumer. They do have to get paid, however, and their pay comes from your premiums. Several insurance companies have begun ‘online only’ insurance models, where all of your interactions with the insurance company is through the internet (or by phone) which limits their overhead, and makes them more competitive. Many times, the cheapest premiums will come from online insurance providers-not from national chains with local agents.

One other thing- the large national insurance providers that do a lot of advertising have huge advertising budgets which also add to their overhead and the costs get passed on to you in the form of higher premiums. This is why it is so important to get as many quotes as possible including quotes from the less well known providers. Regardless of who you choose for your insurance provider, it is important to check them out by Googling “best car insurance companies” and “worst car insurance companies, and seeing how your provider stacks up. Or you can go to:


Do you think your insurance agent will give you an objective review of the company he represents? I doubt it!

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