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Many Americans will go to surprising lengths to get their hands on some extra money these days. In a recent survey conducted by the Progressive group of insurance companies, people said they would switch political parties, give up their sense of smell, eat bugs and even sell their blood for $500. Yet many people won't spend a half-hour shopping for auto insurance to save a comparable amount.
"Consumers who believe insurance costs are about the same from company to company are mistaken," said Tom Hollyer, product development manager for Progressive.
The company conducted six studies in the past five years with hundreds of thousands of consumers and found each time that the amount charged for a new, six-month policy with comparable coverage varies significantly from company to company. Looking at the results of those six studies, the smallest spread in rates was $481 every six months, while the highest was $586.
Besides shopping around, people can also save money on their auto insurance in other ways:
Increase your deductible. A deductible is the amount of money you agree to pay before the insurance kicks in. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive premium by 15 to 30 percent.
Review your policy. Does your coverage match your needs? You may be eligible for a rate reduction if you have gotten married, moved, no longer insure a younger driver or if it has been at least three years since your last violation.
Ask about discounts. Just because you've been with the same auto insurance company for years doesn't mean you're getting the best rate available. Many insurance companies offer discounts to those who have owned their home for more than three years or to those who drive a car with anti-lock brakes, anti-theft devices, air bags, etc. If you meet any of the above examples, ask to see if they're reflected in your policy.
To find out more information on how you can save money on your auto insurance policy, contact an independent agent, call 1-800-PROGRESSIVE or visit the Web site at www.progressive.com.
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