How can every car insurance company claim they have the lowest rates?

Anyone else getting annoyed by that Progressive woman touting big savings?

You saw the commercials from Geico (15 minutes could save you 15% or more). And that overly cheery Progressive woman who annoys the hell out of me. Now State Farm claims to save you $489 over Geico and Progressive. How can every one claim to be cheapest? Who is lying here?

Here is the real deal.  They are all correct and yes, you can save big by getting a quote. Not because Progressive, Geico, or State Farm are so awesome, but because you are cheaper to insure than you think.

Here is why. And how to save.


Rates should go down over time. Why are you still paying the same?
Let’s say you bought a new car for 40K three years ago. Your insurance quote was (partially) based on replacing this car. Three years later you car is worth 20K but you are still paying the same. Why?

Your driving record gets better over time
You also accumulated more driving experience over the last three years, so you are less risky to insure (if you had no serious tickets like a DUI). This is especially true for younger drivers. Why are you are still paying the same?

You see, both factors should reduce you insurance premium over time. But most continue to pay the same (or even accept increases year after year). It’s a great way to make money for the insurance companies. And the basis of their large savings claims once you do get a new quote.

How to Save Money
If you haven’t shopped for car insurance in a while pick up the phone. Most people wait until they get a new car. That is too late. Stop paying your outdated premiums and get a quote every year or two.

I recommend sticking to insurance companies that have a good track record of service and paying claims. Being financially stable is also important. Check out Consumer Reports for Ratings to avoid the dogs.

BTW, you don’t have to switch from your current insurance. Just let them know you are shopping for a new quote. They might just lower yours on the spot.

You can read more about money saving tips and cars on CraigSelection.com