44 KIPLINGER’S PERSONAL FINANCE^ 05/2017MONEY
Commissioners’ Consumer
Information Source (www
.naic.org/cis). Type the com-
pany’s name and choose
“property/casualty” in the
drop-down menu, then click
on “closed complaints.” (To
see the actual number of
complaints in your state,
click on “closed complaint
counts by state.”) Select
“closed complaint ratio
report” and then “private
passenger.” You’ll see a ratio
of the insurer’s market share
of resolved complaints to
the company’s market share
of auto premiums. The na-
tional median is 1.00; com-
panies with ratios below the
median have a better track
record than those with ra-
tios above the median.
You can also review the
insurer’s financial strength
by searching for the com-pany at A.M. Best’s or Stan-
dard & Poor’s website
(you will need to register).
Insure.com surveys custom-
ers about their experience
with insurance companies,
including claims service
(see http://www.insure.com/best-
car-insurance-companies).
J.D. Power also rates firms
on the shopping process and
on claims satisfaction (go to
http://www.jdpower.com/ratings/
industry/insurance and look
under “Automotive”).- Get all the discounts you
deserve. You might be able
to lower your premium by
locking in more discounts.
For example, if your child
is getting good grades, you
could get a break of up to
25%. Or your rates could
drop if your teenager moves
away to college and doesn’t
take a car. You could also
earn discounts for getting
married, reducing your
commute or improving your
credit score. Some states
even allow you to take a
defensive-driving course
in exchange for a rate re-
duction. (Look for a list of
discounts on your insurer’s
website, the buyer’s guide
on your state insurance web-
site, or at http://www.carinsurance
.com/discounts.aspx.)
You could also trim
premiums by raising your
deductible or dropping col-
lision coverage altogether
on an older car. - Give your current insurer one
last chance. You might or
might not be able to per-
suade your current insurer
to lower your premium be-
cause you found a better
deal elsewhere. But it
doesn’t hurt to ask. If noth-
ing else, you may uncover
new discounts that lower
your premiums.
Plus, your insurer may ac-
tually bump up your rate if
you appear to be a customer
who doesn’t shop around.
This practice, known as
price optimization, uses
personal consumer data
to gauge your likelihood
of shopping around for poli-
cies. If you are on record
complaining about your rate
or have recently switched
insurers, you may look like
a more active shopper. (Note
that price optimization is
illegal in 19 states and the
District of Columbia.)- Let your driving speak for
itself. A “pay as you drive”
program, such as Allstate’s
Drivewise, Progressive’s
Snapshot or State Farm’s
Drive Safe & Save, is ideal
for those who drive sedately.
Plug a monitoring device
into your car or allow a
smartphone app to track
your driving habits and you
can earn discounts of up to
50%, depending on mileage,
the times of day you drive,
your speed, your braking
habits and other factors.
You may also get a small
discount for signing up.
If you’re willing to go
through the hassle of
installing the device and
sending it back, be sure
to ask about the data your
insurer is collecting. Most
programs promise not to
raise rates using collected
data (and instead simply
withhold any discount).
But Progressive, for exam-
ple, cautions that in certain
states, risky driving behav-
ior may result in higher
rates. ■
KipTipAdvice From an Agent
An independent agent who works with multiple insurers can help
you compare policies—including those from under-the-radar but
reputable companies too small to place ads on sports broadcasts.
More importantly, the agent will recommend limits based on
your situation, highlight nuances in policies that you might have
glossed over and be your advocate in the event of a claim. An
agent can also find a policy that will pay for replacement “OEM”
parts (equipment made by the original manufacturer, rather than
a third party) or cover repairs at your body shop of choice.
To find an independent agent, ask friends and family for recom-
mendations, or search by zip code at http://www.trustedchoice.com.
Ask prospective agents how many companies they represent,
why they represent those companies and how they will help dur-
ing a claim, suggests Rebecca Korach Woan, CEO of Chartwell
Insurance Services, in Chicago. You want someone who will
actively reach out to you at renewal time, too, to review cover-
age. Feel free to tell an agent you want to save money on your
policy, but remember that you are getting expertise and hand-
holding, so you shouldn’t expect rock-bottom rates. As compen-
sation, agents receive a commission of 10% to 12% paid by the
insurer you choose.Enter a few details about
yourself and your car into
the search tool and you’ll
receive two to five quotes
online or from the insur-
ance companies via phone
or e-mail. If you are eligible
for a USAA policy because
you or a relative has served
in the military, you may
need to look up its policies
separately, says Hunter. For
some companies, such as
Allstate and State Farm, it
may be better to work with
a local agent, which you can
find through their websites.
- Vet the company. A low
rate isn’t worth it if your
insurance company has
poor customer service or
is stingy with payouts. Look
up the insurer’s complaint
record at the National As-
sociation of Insurance