Insurance 101 (cont.)

Shop Around

The insurance business is essentially a gigantic bookmaking operation that bets premiums against the probabilities of having to pay out on an accident or injury claim. Except in a handful of states where bureaucrats set the rates, it's up to each insurer to develop its own probabilities and set its rates accordingly. Rates and underwriting guidelines will reflect what market segments an insurer wishes to target and how efficiently the company is managed.

All of which says, rates for the same driver and vehicle can vary dramatically from company to company. If you live in a state with competitive insurance rates, start shopping by obtaining a quote from one of the major firms in the industry--State Farm, Allstate, Farmers, Nationwide, and USAA are among the largest. Then contact an independent agent who can query other companies for you. You can also get comparative insurance rate quotes online from companies like InsWeb Corp. (http://insweb.com). Compare them all, using the IntelliChoice worksheet to track and calculate rates. You may find that premium prices can differ by as much as 50% for the same coverage.

The ten insurance companies listed below are the largest personal auto insurers in the United States. To ensure that you are getting the most competitive rate, obtain quotes from several of the companies listed here, and compare them to smaller companies or independent agents. You can find a listing of insurance agents in your area by looking in the yellow pages under "Insurance."

Although there are many differences between insurance companies, one thing you should seriously evaluate is the company's reputation when it comes to processing claims. Before you buy, it makes sense to check with a few local repair or body shops to find out which insurers have the best and the worst reputation.

The following is a listing of the top 10 auto insurers:

Allstate Insurance
2775 Sanders Road
Northbrook, IL 60062
(847) 402-5000
www.allstate.com
American Family Mutual Insurance
6000 American Parkway
Madison, WI 53783-0001
(608) 249-2111
www.amfam.com
Farmers Insurance
4680 Wilshire Boulevard
Los Angeles, CA 90010
(208) 239-8400
www.farmers.com
Geico Corporation Insurance
One GEICO Plaza
Washington, D.C. 20076-001
(800) 861-8380
www.geico.com
Liberty Mutual Insurance
175 Berkeley Street
Boston, MA 02116
(617) 357-9500
www.libertymutual.com
Nationwide Insurance
One Nationwide Plaza
Columbus, OH 43215-2220
(800) 882-2822
www.nationwide.com
Progressive Insurance
6300 Wilson Mills Road
Mayfield Village, OH 44143
(800) 776-4737
www.progressive.com
State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
(888) 702-2307
www.statefarm.com
Travelers Insurance
One Tower Square
Hartford, CT 06183
(860) 277-0111
www.travelers.com
USAA Insurance
USAA Building
9800 Fredericksburg Road
San Antonio, TX 78288
(800) 531-8100
www.usaa.com