March 17, 2015

How do I buy cheap auto insurance?

How can you find cheap auto insurance.

Where to look, what to do.

How do you buy cheap cheap auto insurance you ask?   This is a very common question that insurance brokers and insurance agents get, so we have become used to it.  To be clear this is a distinctly different question from How do I reduce my auto and home insurance costs.  While the first question focuses more on purely the cheapest of the price, the second question is focused more on how to reduce what you already have, more often with minor adjustments.  Studies show that shopping around for Car Insurance can save you money.

Some of the suggestions that I have may surprise you in that they are ideas or offerings that this insurance brokerage stands not to gain from.  In the interest of serving the public good though, I provide these ideas as a starting place for the general public.

How do I buy cheap auto insurance?

First off the cheapest Auto insurance I have ever seen in California is through the California Low Cost Automobile program.  This is a national program that California participates in, essentially, if you qualify, it serves as ‘placed’ insurance on the auto insurance providers in your state.  It is below what is generally considered the legal minimum for the State but it is accepted by both the DMV and the State of California.  The coverages offered are $10K/ $20K/3K with an option for Uninsured Motorist, which I always suggest clients get and an option for medical.   There is NO comprehensive, NO collision, and none of the other frills – it is truly bare bones coverage.  This program is intended for uninsured drivers who own their own vehicles, have a clean driving record, meet low income requirements, and there are many other restrictions.  Marindependent Insurance Services LLC does partner with the LCA program to provide this to our clients.

The second best way to buy cheap auto insurance that I have seen and know about recently is to buy the new product from metro mile.  I am NOT appointed with, nor am I affiliated with them in any way.  They charge by the mile so it probably only works if you really rarely use your automobile.  Maybe twice a month?  Live in San Francisco and drive less than say 3,000 miles per year?  As I have stated, having never sold this product, most of my experience is from what people tell me.

Thirdly, probably the most obvious, is to shop online.  Check out Geico, Progressive, 21st Century, and then check with an insurance broker (such as myself).  An Insurance Broker usually can pull prices from at least ten insurers and you are likely to get a pretty competitive number from them.   A bit of a difference between the likes of pure online shopping and calling and speaking with a broker, is that a broker may… be able to get you some added discounts, some of which may seem a bit odd, but it can be a little experience that can help.   Please note that this office is affiliated directly with Progressive, but only when writing Business Lines Auto Policies, and not Personal Lines.  Also, we broker personal auto policies and are rarely if ever appointed by the companies that we quote you with.

Forth, find that discount fever.  I have written an interesting blog post about various discounts titled: The Discount Dilemma...  But finding all the discounts that work for you and your family can be a good idea.   Here are a small sampling:  Join AAA for a AAA discount on non AAA auto insurance.   Some Insurers provide discounts for Elders that take a safety driving course.   There is a discount for good students who are in school.   Buy a safer car that has anti lock brakes, airbags, daytime running lights, and other safety features.   Combine your Home and Auto together for the Auto Home discount.   Renting, many companies will give you a the auto home discount when you rent.  I have even seen odd situations where the discount on the auto paid for the inexpensive bare bones renters policy.  Buy a green type car (hybrid, electric, etc).

The fifth way to get cheap auto insurance is to obey all the traffic laws and not get any tickets on your record.  Having tickets on your records prevents insurance agents from getting you the best price.

The sixth way to save on auto insurance is to not get into any accidents, especially ones that you are at all at fault for or that involve bodily injury.  Filing claims raises your insurance costs.

Reevaluate Your Insurance too:

The next consideration is to Reevaluate your Insurance needs:  You may once have needed high insurance minimums but no longer require them.  Also you may once required a low deductible but now no longer need that.   This is where a licensed insurance broker would come in – they may be able to assist you in setting some numbers.

Lastly, if you are really interested in finding cheap auto insurance, you need to shop every three years or so, especially as your circumstances change.  Unlike most things with Cost, California is NOT the most expensive place to buy Auto Insurance.

About Marindependent and Scott:

Marindependent Insurance Services LLC – 0K10734 – Mill Valley – San Rafael

Scott W Johnson – 0H11625 – Independent Insurance California

About Marindependent Insurance Services LLC: Marindependent is an independent boutique insurance brokerage focusing on small business, harder to place homeowners, umbrella, and term life insurance in California and Marin County.  Thank you for reading How do I buy cheap auto insurance?

Please read our disclosure.  Reading about insurance online is no full replacement for speaking a licensed agent.

About Scott W Johnson: Scott can be seen wandering around the back-roads of California with his family and dog in his SUV.