Weeding through Car Insurance Ads and Promotions

With all the ads offering to save me 20%, 30% or 40% on my car insurance, I realized all I had to do was sign up with the first company, then switch to the second company, and then switch to the third company. As I kept whittling down my insurance premium changing from company to company, eventually I’d be paying almost nothing for auto insurance.

Of course, that’s impossible.

While the insurance companies may have data to back up their savings claims, that data is usually limited to comparisons of specific categories.

For example, Company A may be 20% less than Company B for 30-year-old drivers of minivans. Company B may be 30% less than company C for 21-year-old drivers of Honda Civics. And company C may be 40% less than Company A for two-car families who don’t smoke.

There is nothing in any auto insurance company’s ad or promotion you can use as a basis to buy your insurance. They’re all comparing apples and oranges. And you’re a nectarine.

All the insurance companies are banking on your laziness and your gullibility in believing their marketing hype. They’re hoping they can smooth-talk you into their program before you go the extra mile to actually get quotes from other companies.

They make their money because in most cases, they’re right. If they have a slick marketing campaign, many people will sign up on faith without comparison shopping.

To get the best deal on car insurance, you have to get at least three quotations. And make sure they are on the same basis.

Company A may offer you a discount for parking your car in your garage instead of on the street. When you get a quote from Company B and Company C, ask about the same discount. Maybe Company B doesn’t offer it, and maybe Company C’s sales rep just overlooked quoting you that discount.

If Company C comes up with a different discount you didn’t hear about from A and B, call A and B back to ask if they offer it, too.

You will be really surprised what you can learn just spending a couple of hours on the phone batting quotations back and forth between just three companies.

If four hours of aggressive phone research saves you $40 a month on your insurance, you’ve saved $480 for the year, netting you $120 per hour for your efforts.

Do you have any other ways you can earn $120 per hour?