What's the downside, if any, to shopping around for car insurance? Is there anything wrong with switching around frequently, besides the discount some offer for long term customers?

I don't know if there are any downsides per-se. However, I would stick to a well known company with a good reputation even if you can get cheaper rates with a lesser known company. When you need to make a claim, it will make a difference.

at the current rate $258 a month, i'm willing to deal with a cheaper rate at the cost of more hassle come claim time.

Limecat is thrifty.

The renewal discount is nice, but the "best" discounts are multi car, if you have a lo-jack (at least on the comprehensive), and if you can claim, legitimately, that one or more of the cars you insure are for "pleasure" use (not driven to and from work). I believe there is also a discount for ABS.

Also, if you bundle your homeowners and car insurance there are some savings offered for having both types of insurance with the same company. I do not currently do that, but know it is "out there".

I have a decent broker in So Cali, and I also have a company car - so for pleasure use only, I insure 3 cars (99 Boxster, 99 Eclipse GST Turbo, and 2004 RX8) with "high" liability limits for $1800/yr.
I do have $500 deductibles on collision/comp. This is with Mercury Insurance.

Dude, call American Express Property & Casualty for a quote.

Don't work for them and don't know anyone who does but they've significantly beaten EVERYONE I've called for quotes. They've also been great to work with as a company.

-Eric

Originally posted by Riccio
The renewal discount is nice, but the "best" discounts are multi car, if you have a lo-jack (at least on the comprehensive), and if you can claim, legitimately, that one or more of the cars you insure are for "pleasure" use (not driven to and from work). I believe there is also a discount for ABS.

Also, if you bundle your homeowners and car insurance there are some savings offered for having both types of insurance with the same company. I do not currently do that, but know it is "out there".

I have a decent broker in So Cali, and I also have a company car - so for pleasure use only, I insure 3 cars (99 Boxster, 99 Eclipse GST Turbo, and 2004 RX8) with "high" liability limits for $1800/yr.
I do have $500 deductibles on collision/comp. This is with Mercury Insurance.

Unfortunately I don't have any of those discounts going for me. Maybe the homeowner's one, in the near future. I'm looking to buy my first home. But thanks for the advice.

Originally posted by Sue Esponte
Dude, call American Express Property & Casualty for a quote.

Don't work for them and don't know anyone who does but they've significantly beaten EVERYONE I've called for quotes. They've also been great to work with as a company.

-Eric

Thanks, I'll give them a call after work

I get homeowners discount. I was asked.. "are you a homeowner" and I said "yeah, kinda" She said, "So you own a home somewhere" Im like "yeah".

I dont live there, and I'm only 1/4 owner, and the insurance isnt with them.. so I think it depends on the company..

winning,

How old are you?? that is awful high, but if you're young it might not change with another company.. also what company are you with (if you dont mind me asking)

I pay 1600 for a year and im 31.

Also, it might not just be a matter of more claim time hassle.. I once got in an accident and was sued almost an entire year after the accident and after the claim was paid by my insurance company.. It wasnt really my fault but he was friends with the officer present. Anyway, the insurance company handled the lawsuit and actually won. They were only responsible for up to 10k, so I would have been responsible for any judgement over 10k.. They hired the lawyer, etc.. To top it all off, that Insurance company stopped covering me after that accident, and I was with another company at the time of the lawsuit. I'm sure they HAVE to do this.. but maybe they could have jerked me around more.

258?...Limecat must be a speed demon under the age of 25.

Just a guess but for that rate you must have a ton of ticketts on your record...or accidents.

What was the deductible on that policy? (raising the deductible will lower the payments a bit). You could also dump everything except your liability coverage (depending on state regs, it will lower your payments alot but it's too scary for me).

wow. all hail limecat.?!

There's no reason not to shop for rates. Every insurance company uses a different set of criteria for rating and pricing policies, and no company will be cheapest for everybody. Also, because of the way rating territories are defined, the cheapest company for you may change if you move. And don't forget that insurance companies are constantly adjusting their rating and pricing guidelines, so the company that quotes you an insanely high rate today may be much more reasonable next year.

The bottom line is, if you want to get the lowest rate, you have to shop as many companies as possible, and if you want to keep getting the lowest rate, you have to keep shopping every 6-12 months (but if you're perfectly happy with your current company's rates and service, it's probably not worth the trouble). However, as you and others have mentioned, many companies offer discounts to renewal policies that aren't available to new policies, and if you qualify for multiline (e.g. auto + home) discounts, you have to either give up the discount or quote both lines together every time you shop.

I'm 27 and have been quoted at $1400 a year with 2 vehicles from 2 companies, without any discounts for other things.
Liberty Mutual and some other company, don't remember the name

why is the 8 considered a hatchback?

I have Gieco and I've been pretty happy with them. Except for them hassling me to send them copies of all of my registrations and my roommates proof of insurance all the time. But, they only charge me around $1100 per yr for my 8. And that is after my at-fault accident 1 1/2 years ago ($26k loss total), so I think that my rate is pretty reasonable.

$258?!?! Holy Crap! :eek: I'm 24 and I pay $176 a month ($500 Deductibles) and $20 for Renter's Insurance (for the Apt.) With State Farm. :)

Originally posted by Winning_BlueRX8
What's the downside, if any, to shopping around for car insurance? Is there anything wrong with switching around frequently, besides the discount some offer for long term customers?

(In California at least) insurance agencies charge a broker fee of around $100 every time you switch to a new carrier or add a new vehicle. These broker fees are non-refundable so you probably don't want to be switching to a new carrier every other month.
I personally go through Mercury Insurance. My policy includes (California minimum liability limit) 15/30/5k, comprehensive/collision, $500 deductible. This costs me $703 per six months for my RX-8, as well as minimum liability on the family wagon practically added for free. Maybe give them a try if this sounds reasonable?

I too am 24 and but was quoted (since I am close to getting my 8) at $1500/yr. with 500 deductible with State Fram in Indianapolis. When I turn 25 it will be $1100/yr. Not to bad.

I forgot to mention that includes my low miles discount as well as a discount for having renters insurance with them.

Originally posted by GiN
(In California at least) insurance agencies charge a broker fee of around $100 every time you switch to a new carrier or add a new vehicle. These broker fees are non-refundable so you probably don't want to be switching to a new carrier every other month.
Hmmmm. Are you dealing directly with a Mercury agent or going through some sort of consolidator? Have you solicited quotes from multiple companies' agents and direct writers (e.g. GEICO)? I've never heard of a fee for changing coverage or switching carriers unless you're going through a middleman of some sort. I've never lived in CA, but it sounds odd to me.

I'm 20 with Farmers and I pay $200 a month. I traded in my Jeep which I paid $150 a month on. So not to shabby.

-Guy

I'm 27 and pay $81 per month with Progressive. I paid $85 a month for my '99 Mitsubishi through Allstate before I got my 8 back in November. I shopped around through a number of places and found Progressive to be by far the best value.

Originally posted by md_guy
Hmmmm. Are you dealing directly with a Mercury agent or going through some sort of consolidator? Have you solicited quotes from multiple companies' agents and direct writers (e.g. GEICO)? I've never heard of a fee for changing coverage or switching carriers unless you're going through a middleman of some sort. I've never lived in CA, but it sounds odd to me.

I am dealing with a Mercury agent. However, the agency is also affiliated with several dozen other insurance carriers. Consider them as a brokerage. What happens when you get a quote is that the agent enters the information into a computer, sends out the the information to various companies, and after a few seconds they receive replies from several insurance carriers. Generally these guys make no money from the amount you pay to the carrier - they just charge you $100 each time you sign up. One of the more popular California insurance brokers operating in this fashion is AIS. Many insurance carriers do not sign up individuals directly, and will refer you to a local agent of this sort. Also, insurance agencies may hide the non-refundable broker fee as a "down payment". You may notice your first month's payment is generally about $100 more than the following months for the rest of the term. At the end of the 6 or 12 month term they will not charge you another "broker fee" or "down payment" fee unless you decide to go with another carrier. Perhaps this happens only in California, I couldn't be sure. You should ask the insurance agent directly.

GiN - sounds like you're getting a fair rate from Mercury - my Ins Company of choice as well -

But that $100 broker fee was sure news to me - I went and checked - does not look live I've ever been charged that $100....

Don't insurance companies run a hard credit check on you as part of the evaluation process? I thought I heard that somewhere. If so then one potential drawback of shopping around is flummoxing up your credit.

Or I could be totally wrong. :)

539.00 a year on our new RX8 Erie Insurance here in Pa.
ers