get referrals Ask friends, neighbors, and co-workers where they bought their
policies and whether they're happy with the service they've
received — particularly if they've filed a claim. Or call your
state's department of insurance (or check its website) for a list
of licensed insurance companies and agents and information about
any complaints filed against the companies. The National
Association of Insurance Commissioners website (
www.naic.org) has
links to insurance regulators in every state.
check each company's stability You should only consider insurers with high ratings from the
leading insurance evaluation agencies, including A.M. Best
(
www.standardandpoor.com), Standard & Poor's (
www.ambest.com), and
Moody's (
www.moodys.com).
compare premiums Search the Internet for the lowest premiums using one of the
online price-quote services. InsWeb (
www.insweb.com) and
Quotesmith.com (
www.quotesmith.com) are two of the best
resources for quotes on auto, health, homeowners, and life
insurance. If you want more guidance, enlist the aid of an
independent agent who can help determine what kind of policy is
right for you and can provide quotes from several different
companies. You may save 5 to 10 percent on your premiums and cut
your paperwork if you buy multiple policies from one insurer.
choose an agent Whether you decide to buy your policy through an independent
agent, an insurance company's agent, or directly from the
company will depend on your needs. For example, if you know
which company you want to buy from, but you want help figuring
out coverage limits, use an agent who works for that company.
(Check the company's website to find agents near you.) If you
want an agent's help determining how much to buy and you want to
compare quotes from more than one company, use an independent
agent. It will soon be possible to buy insurance online from the
major insurance companies (in which case, your agent is you).
You can already buy auto insurance over the Internet from
Progressive (
www.progressive.com), the nation's fourth largest
auto insurer, in most states.
