Finding Lower Rates Important in Tough Economy

Many Americans are facing the prospect of a holiday season with less money in the bank and a less-than-optimistic view of their chances to make it back in the New Year. The struggling real estate market, the stock market plunge, continuing job losses—all are affecting the average consumer’s sense of financial well-being.

While there are a number of strategies that can help struggling consumers survive this downturn, one of the easiest ways they can save money is to look at their auto, homeowners, term life, health and other insurance policies and make sure they’re not paying more than they have to.

“Millions of Americans could save money on their insurance if they shopped around,” says Hussein Enan, CEO of insurance comparison Web site InsWeb.com. “Whether with an agent, by phone, or online, comparing insurance quotes from multiple providers is one of the easiest ways families can make sure they’re not paying too much. It’s also a great opportunity for them to review their policies to make sure their coverage options and amounts are appropriate—something most families should do every year regardless of whether they’re comparing providers.”

With hundreds of insurance companies in the United States, most consumers have a lot of choices when purchasing insurance. And because different insurers often specialize in insuring different types of customers, consumers who haven’t shopped around in a while might be surprised by what they find.

For example, if a consumer shopping for auto insurance has purchased a new vehicle, moved, or had an accident or moving violation come off their driving record, insurance companies that previously did not offer competitive rates may offer the best quotes now. The same holds true for other types of insurance as well.

Because insurance is such a significant part of most Americans’ budgets, saving a little on any type of policy can make a big difference month to month.

According to data from the National Association of Insurance Commissioners (NAIC.org), Americans pay an average of about $800 per year to insure each vehicle they own and $800 per year to insure their homes.

By shopping around and saving 10 or even 15 percent on those policies, families could save hundreds of dollars. In a challenging economic environment, those savings could make the difference between just scraping by and breathing easy.