After Divorce, Finding Auto Insurance as a Single

Once you’ve met your state’s requirements for minimum coverages, sit down with your insurance provider to determine if higher coverage limits are important to you, based on your personal financial situation. I recommend sitting down with a licensed insurance agent who will be able to go over your personal needs,” said Chris Cunnif, vice president and product manager of automotive insurance at Liberty Mutual Insurance Company.

When choosing your deductibles, Cunnif added, “It depends on a consumer’s financial situation and their ability to cover out-of-pocket expenses in the event of an accident. Given that most people are involved in an auto accident only once every 10 years, you might not want to pay $200 or so extra per year for a $250 deductible, and settle for a less costly $500 deductible, for example. If you want to keep your insurance costs down, maintain a favorable driving record, meaning no accidents or moving violations. This is the number one factor that causes someone’s annual auto insurance premiums to go up.”

Often, auto insurance companies offer discounts for a multitude of reasons, but you sometimes have to ask for them. If you’re insuring multiple vehicles under the same policy, you’re entitled to a multi-vehicle discount. If your vehicle has an alarm system, this too will save you money on insurance. A good driving record, maintaining good grades in school (if you’re a student), if you drive less than a specific number of miles per year, non-smokers, and carpoolers are also often entitled to discounts.  


SHOPPING FOR THE BEST AUTO INSURANCE RATES  

To find the best auto insurance deals, contact several insurance providers or brokers. Obtain a referral from a friend or co-worker, or check with companies like Amica Mutual (800-242-6422 / www.amica.com), American International Group (AIG) Insurance (877-638-4244, www.aig.com), Allstate Auto Insurance (866-621-6900 / www.allstate.com), GEICO Car Insurance (800-861-8380 / www.geico.com), Liberty Mutual Insurance (800-837-5254 / www.libertymutual.com), MetLife (800-MET-AUTO / www.metlife.com), Nationwide Insurance (877-669-6877 / www.nationwide.com), Progressive Auto Insurance (800-776-4737 / www.progressive.com), or State Farm Insurance (www.statefarm.com).

Obtaining an accurate and reliable quote will typically require you to spend between 15 and 20 minutes on the phone or in-person with each insurance provider. However, by completing a short, online-based questionnaire, you can compare policies offered by multiple insurance companies at once by visiting one of these Web sites: Esurance.com, Ensurance.com, InsureOne.com, InsWeb.com, LowerMyBills.com, NetQuote.com or Yahoo! Finance Auto Insurance Center (http://finance.yahoo.com/insurance/auto).

Cunnif explained, “There are a number of factors to consider when choosing which insurance company to do business with, including the price, coverage, and options being offered. The ease of doing business with the insurance company is also worth considering. Can you interact with the company in-person, over the telephone, and/or via the Internet? Can you reach the customer service department or file a claim only during business hours or 24 hours per day, seven days per week? I recommend looking at an insurance company’s overall customer satisfaction rating and the financial strength of the company.”

You can research specific insurance companies and see how they rate in a variety of categories by visiting the J.D. Powers and Associates Web site at www.jdpower.com/insurance/ratings/auto-insurance-provider-ratings.    


TO READ MORE

Click here to read money-saving tips when buying cars.

Click here to read money-saving tips for car repairs and gasoline.



Jason R. Rich is the series editor and author of "Entrepreneur Magazine’s Personal Finance Pocket Guides." To learn more, please go to www.JasonRich.com.