Used Car Insurance (cont.)
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If you're having trouble deciding between two different models, cheaper insurance could help sway your decision. "If you are torn between two cars, and you find out one costs significantly more [to insure], buy the other car," suggests Luedke.
Each insurance company maintains its own statistics and rates models according to its own experience. So if the car you want is expensive to insure with one company, try some others. Direct-marketing companies like Geico, Farmers, and Progressive can provide very attractive rates on some cars, making up for it with uncompetitive rates on cars they don't like. "Direct companies often do have a good rate," says Lynn Carney, an agent for Kerxton Insurance (kerxton.com), an independent agency, "but you don't have an agent to deal with, so if you ever have a problem, you don't have a relationship." While this may be true, most such companies do tend to run their customer-service phone lines around the clock if you feel the need to speak with someone outside business hours. While companies like State Farm and Allstate have local agents to help you sort through questions regarding coverage limits and deductibles, they only write policies with their own company. Independent agents can shop your policy with all of the companies they represent, and they are usually familiar with the kind of vehicles each company likes and dislikes. That means they can find you the best rate available among all of the companies they represent. "Independent agents can usually service all your needs," Carney adds, "and because they don't work directly for the company, but for the customer, they may be able to help you out." For example, in the event you back over your mailbox, you can call your independent agent to ask whether it's worth it to file a claim without tipping off your insurance company about the mishap. Identifying your insurance needs and researching the costs for the vehicles on your shopping list can save you real money. Do your homework before you shop, and put your cash toward a better-condition, richer-featured car rather than high insurance premiums. |
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