Auto Insurance Rates
Local Agencies
While these may not be the cheapest option, they are in the area and it is worth the phone call. They will be able to meet with the customer to put together a quote based on a specific plan. Customers can have them change their coverage options to see what the lowest and highest rates are.
Insurance Brokers
Insurance brokers can offer auto insurance coverage through several different companies. Generally they offer insurance from smaller companies or online insurers, who do not have local offices. This allows them to offer very low rates, as the companies are all competing against each other. Another reason brokers can offer cheaper rates is because the insurance companies are not paying as much in overhead expenses. With local agencies, the headquarters has to pay commissions and bonuses to the agents and their sales people. Many insurers also provide other benefits to their employees, such as insurance and vacation time. Unfortunately, the customers are ultimately the ones paying for these employees. When insurance companies contract a broker out to make their sales, they pay them a smaller commission. The broker and their sales people are happy to take a smaller commission in trade-out for the ability to sell from a longer list of companies. Different companies specialize in different scenarios, so when they have multiple companies to insure customers there is a better chance a customer can be gained.
Online Insurance
There are many online insurance companies that offer cheap auto insurance rates. This will require the customer to fill out their own paperwork, which can be a tedious process, but the savings may be well worth it. Online insurance companies are similar to brokers, in that they do not have to pay the overhead on several individual agencies.
People need to check with all of these sources before renewing or buying auto insurance. A small amount of work can result in huge savings.