Finding Cheap Auto Insurance Quotes is a Cinch

A new report from the Insurance Information Institute revealed that low and moderate income Americans are benefiting from a highly-competitive auto insurance marketplace that provides a wide variety of cheap auto insurance quotes. However, because prices vary so widely, a person who doesn’t shop around for coverage could suffer from considerably higher premiums.

Insurance Information Institute Reveals High Insurer Competition

The Insurance Information Institute has recently found that high competition among auto insurance companies is helping drivers purchase affordable coverage for their vehicles.

A recent report released by the institute found that a person with the same good driving record can receive totally different quotes depending on the company they receive an assessment from. Some speculate that several insurers are calculating higher risks, which increases costs, while others are fighting for customers by reducing costs.

According to the Insurance Information Institute report, the Consumer Federation of America (CFA) conducted research by creating a composite of a 27-year-old man and a 35-year-old woman who both were single with one dependent, comparable incomes, educational backgrounds and equally good driving records.

Both of the individuals received quotes from leading insurers reaching as high as $1,900 and dropping as low as $700 a year when seeking state-mandated minimum liability insurance.

Shop Around for Cheap Auto Insurance Quotes

As evidenced in the research conducted by the CFA, the rates found in the auto insurance marketplace don’t vary as much based on gender or age as they do based on the insurance company chosen.

This means, it’s critical that a person shop around to find cheap auto insurance quotes. Without shopping around, you may find yourself paying closer to $1,900 a year unnecessarily when more affordable coverage was available from an equally-reputable insurance company.

While you’re shopping around, don’t forget to look for discounts that can reduce your costs even further. The more steps you take to find affordable coverage, the less you’re going to pay for your auto insurance.