Chicago, IL (PR WEB) January 13, 2011–What’s the difference between a bad driving record and a good one? As much as $3,000 a year or more according to a new analysis comparing online auto insurance quotes. The research was conducted by Ryan Krienitz, a college student and marketing analyst intern for Chicago-based online insurance resource E-INSURE Services, Inc. Krienitz created profiles for three fictitious drivers, all age 21 with 2009 Mustangs, living in Palatine, Illinois, and reporting the same five- to six-year history of previous car insurance coverage. The data that made the difference were their driving records.
“Everything else about the drivers’ profiles was as identical as possible using the various online applications of six auto insurance companies,” said Krienitz. “Good Driver had no moving violations and no accidents, Bad Driver reported a couple of accidents, and Drunk Driver had a DUI conviction.”
As the graphic shows, Good Driver was able to get auto insurance quotes ranging from a low of $90.79 per month from GEICO to a high of $207.71 per month from Progressive. Those same carriers quoted Bad Driver $166.22 per month and $238.05 per month, respectively. The real surprise was the wide discrepancy in policy prices for Drunk Driver. “One carrier, State Farm, wouldn’t insure Drunk Driver at all. Nationwide wanted $347.86 per month. But Allstate gave Drunk Driver the low quote of $95 a month, almost as low as Good Driver’s lowest car insurance quote,” said Krienitz.
Why such a range? In some cases, Krienitz was able to get lower monthly quotes for his fictitious drivers by opting for the bare minimum state requirements for bodily injury and property damage, by declining optional coverage such as Uninsured Motorist Property Damage, by bumping up the deductible for comprehensive and collision, or eliminating it altogether. Passing on frills like rental car reimbursement and roadside assistance also shaved a few dollars from some of the car insurance quotes.
But tweaking coverage alone doesn’t explain the broad ranges. David Thompson, President and CEO of E-INSURE Services, explained. “Car insurance companies look at a number of factors besides driving records to determine premiums. The miles you drive, your vehicle and its safety rating, even your credit score come into play. That’s why it really pays to get at least three competitive auto insurance quotes before you commit,” said Thompson.
Thompson noted that the policy prices have been going up. “A typical auto insurance policy is going to cost about $1,030 a year. That’s up almost 6 percent from last year. But there are ways to save money. Take advantage of auto policy discounts like anti-theft equipment, multi-car policies and using the same carrier for all your insurance coverage. Pay annually instead of monthly. Pay online at the insurer’s website. You should also review your auto insurance at least once a year and review your coverage options. If you’re insuring an older car, you might want to drop the collision and comprehensive and just keep the minimum liability coverage your state requires. If you’re shopping for a new car, research comparative insurance policy prices for different makes and models before you buy.”
About E-INSURE Services, Inc.
E-INSURE Services, Inc. provides a free online platform where consumers can easily find multiple insurance carriers and quotes for a variety of insurance products including auto insurance, business insurance, health insurance and home insurance. Specialty insurance products and financial services provider information are also available on the site. For the information and resources you need to get the best possible rates on auto insurance and other insurance products, for more information on auto insurance coverage options and to learn more about the insurance laws in your state, visit the state insurance page.
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