Smart consumers are accustomed to comparing prices online for all kinds of goods and services, and insurance is no different. The spokes-gecko on TV is right: Regularly shopping for auto and homeowner's insurance is a great way to save money. And using the Web can help.
''Many people stick with the same insurance carrier year after year without ever shopping for a better deal,'' Consumer Reports said in the car-insurance guide on its Web site. ''Blind loyalty to one insurer can cost you dearly.''
A survey by the magazine found that some drivers were paying twice as much for a policy than they would have with another insurer.
Shopping online for home and auto insurance can be a bit complicated, which means many people might benefit from the hand-holding of a human broker. But using the Web can be a good idea.
In part, that's because many sites offer not only online quotes but also personalized help via phone or online chat. And, if nothing else, you will be able to see other premium quotes, which lets you know whether your current insurer is competitive on price.
Auto insurance is more important than home to compare prices on, because premiums vary widely. Premiums on homeowner's insurance are relatively similar, and there's no way yet to get a variety of instant quotes on home insurance because it's so specialized, said Sam Belden, vice president of Insurance.com.
It's easy for insurers to offer coverage for a Toyota Corolla whether you live in Pennsylvania or Illinois because the cars are generally the same. But ranch-style houses in those areas can be quite different, as can the contents of the houses.
You often can obtain a discount for having both auto and home insurance with the same carrier. For that reason, a good strategy is to actively shop for auto insurance and, essentially, tack on home insurance from the same company, Belden said.
Here are some issues about shopping for auto insurance.
Why should I compare premiums? Rates for auto insurance vary considerably, not only because of the usual price variations among companies, but because insurers calculate your risk differently.
For example, some insurers heavily base premiums on your credit score, which is why you're often asked for your Social Security number. Others care about how long you've held a job or lived in a house. Still others care more about a clean driving record, Belden said. So, it's a matter of finding an optimal fit for you.
Why should I shop online? The benefit of comparing online is time and hassle. On comparison sites, you can input the information once and obtain quotes from multiple carriers.
It also helps in comparing apples-to-apples quotes, so you don't mistakenly compare auto liability coverage of $100,000 per person in one policy to $250,000 in another.
Insurance.com returns instant auto insurance quotes from a dozen insurers, Belden said. The alternative would be to call up 12 different insurers and go through an interview each time to get a quote. InsWeb.com and NetQuote.com are other popular sites.
But some of the larger, and potentially cheaper, insurers don't participate in comparison sites. So you might separately check out such companies as State Farm.
What types of comparison sites are available? Two types of auto-insurance comparison sites are available. An instant-quote site gives you a quote after filling out forms, which ask questions about you and your vehicle. You can buy insurance right away.
Others are lead-generation sites, which simply sell your completed information to insurance agents. Those agents then contact you by phone or e-mail.
You can often decipher which type of site you're looking at by going to its ''About Us'' page or something similar, which will describe how the site gives quotes, Belden said.
What should I look out for in an insurer? Price isn't the only criterion in choosing a company.
Auto and home insurance are different than life insurance, which requires very little service after you buy.
With the others, you occasionally will be making claims and seeking prompt payment.
The better comparison sites will give you the hours of operation of the insurer, customer-satisfaction ratings and financial-stability ratings from an independent ratings agency.
You also can check with your state insurance department, which might track consumer complaints for insurers operating in the state.
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