Reader’s Question:

I would like to know why car insurance rates vary from one company to another. I am trying to shop for cheap car insurance in St. Louis, Missouri and I am hoping you can give me some tips.

Francis

St. Louis, MO

Hello there, Francis.

It used to puzzle me too until I had an experience of becoming an auto insurance agent years back. Car insurance rates vary for each insurance company for a number of reasons.

Although, it is important that when you shop around for auto insurance, you might want to do a little research. You do not have to listen to snappy television commercials and cartoon mascots.

Cheap Auto Insurance Rates In St. Louis MO

Even if you are looking for cheap auto insurance in St. Louis, Missouri, remember that there are budget insurance companies that might offer very attractive and cheap offers. These budget insurance companies that inundate the airwaves may guarantee lower prices for you. However, their coverage might not be as inclusive as the traditional companies. Usually, they offer basic coverage, and serve the needs of many frugal consumers. The problem will arise once you make your insurance claims. It may be more difficult than you expect since you got their coverage at a very cheap rate.

Most companies that offer low-ball rates typically make up for it with lack of coverage. You will be frustrated when filing claims with them which can usually be exhausting marathons filled with red-tape. Beware of those that pitch you a price far below industry standards as these companies will likely have lower standards of their own.

Ask for discounts, you never know what you might be able to get and how much you can save by asking. Some popular discounts can be given for:

1. Military personnel

2. Good grade students

3. Union membership and bank member affiliations

4. Safe drivers with no claims in last 7 years

5. Defensive driving school attendance

6. Clean credit history – used by many carriers to determine payment risk