How accurate are insurance comparison tools? As these tools have sprouted up all over the Internet, it’s a fair question—and the answer depends on which type of tool you’re using.
There are two types of insurance comparison tools. The first is owned and engineered by a specific insurance company, such as Progressive or Geico. These tools are designed to allow you to compare multiple policies from that single provider. Some of them also provide you with rates from their competitors, but because the site is owned by an insurance company, it has an inherent bias and a marketing purpose intended to get you to switch to that provider.
The second type of insurance comparison engine is a third-party site with no affiliation with a specific insurance provider. This type of tool, such as Gabi, searches a wide variety of insurance carriers to find the lowest rates on the type of coverage you need. Because a third-party site has no bias toward a specific insurance company, it will only advise you to switch if doing so will actually save you money.
If you want to get the best results and accurate rates from an insurance rate comparison, follow these tips.
- Use an objective comparison tool. If you already know you want to use a certain carrier, that carrier’s rate comparison tool will be a good match. But if you’re looking to save money and you’re not committed to a specific carrier, you’ll probably have better luck with a comparison tool that is not affiliated with a specific insurance company.
- Provide complete, accurate information. Your insurance quote is only as accurate as the information you’ve provided. Details such as your zip code, your driving history, the type of car you drive, and your age—as well as those details for others in your household—can all affect the price of your insurance coverage. Take time to locate any information you don’t know and make sure you’re providing complete and accurate details to get an accurate quote.
- Be open to change. If you’re getting quotes on insurance, it probably means you’re ready for a change: Maybe you have a new car, new home, or you just weren’t happy with your previous coverage. Whatever your reason for comparing insurance rates, take the opportunity to save some money. Just because your dad always used a certain insurance company doesn’t mean there aren’t plenty of other reputable providers out there, and it’s likely that one of them could meet your needs for less money. Free yourself to consider something new.