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Survey of Online Auto Insurance Finds Wide Price Differences, Author Says Use an Agent Instead

The National Underwriter's annual survey of online auto insurance finds that in 2007, the highest quote was 85 percent above the lowest, reflecting an even...
August 21, 2007

The National Underwriter's annual survey of online auto insurance finds that in 2007, the highest quote was 85 percent above the lowest, reflecting an even greater variance in possible prices this year compared to last year, when the highest quote was 71 percent above the lowest figure.

For the exercise, reporter Ara Trembly used his 2004 Mitsubishi Eclipse GT, which is garaged in New Jersey.  In the 2006 online auto insurance shopping excursion, a total of six quotes on the same vehicle varied by more than $300 for a six-month payment. This year, the news was even worse, with nine total quotes spanning more than $450.

The magazine said the purpose of the annual online shopping exercise is to gain a consumer's perspective on the market for auto insurance, as well as to evaluate how well some Web sites do at providing reasonable quotes. No endorsement of any particular site or company is intended by the information presented

"Our strong recommendation is that once they have gotten their online quotes, consumers should consult an independent agent," the article concluded. "This way someone will ask those questions the site left out. In addition, a good agent will find additional ways to save consumers money, and may even be able to suggest another insurer who can offer a lower rate or better benefits."

Shopping for Auto Insurance Online Can be Hazardous for Consumers (National Underwriter 8/20/07)

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