Find a great price on car insurance

By SmartMoney

Finding a good deal on an auto insurance policy isn't easy these days, especially if you live in a high-cost state such as New Jersey, New York or California. So when looking for coverage, be prepared to do some research.

In some states, more than 200 companies write auto policies, so even if you get half a dozen quotes, you're only scratching the surface. In other states, you'll have fewer than 50 insurers to choose from.

And even once you find a company with great rates, there's no guarantee you'll get them. After all, you may not qualify for a simple reason, such as a poor driving record. Worse yet, you may find that the great rate evaporates once your policy comes up for renewal in six months or a year.

So be on your guard. To lock in the cheapest deal, you may have to insure with a company you've never heard of and switch providers fairly often. Either way, it pays to shop around.

Here's a guide to the most efficient way to find a good deal.

Internet quotes

The Web is a great place to start your search.

You can get quotes from the Web sites of insurers such as Geico Direct and General Electric's Electric Insurance and from services like InsWeb.

The 800 guys

As you start collecting quotes, don't miss the insurance companies that sell their policies over an 800 number, including Geico Direct (1-800-861-8380), Amica (1-800-242-6422), Ameriprise (1-800-535-2001), USAA (1-800-531-8100) or 21st Century (1-800-870-8212).

After all, these companies don't have to shell out 15% commissions to field agents. And it stands to reason that they'd pass their savings on to their policyholders.

Trouble is, these insurers are very picky.

If you aren't a better-than-average insurance risk, you may be better off taking your business elsewhere. And keep in mind that USAA offers policies only to U.S. military families.

State Farm and Allstate

These two companies command, respectively, 18% and 12% of the auto insurance market. Like the 800-number carriers, they have their own in-house, or "captive," sales forces, but they differ from the 800-number carriers in that they operate out of local offices and offer insurance to a broad range of drivers, from the safest to some of the riskiest.

For a "good risk" driver, the 800 guys will usually be cheaper. But provided your record is reasonable, you're still likely to get a pretty good deal here.

If you've had two or three accidents or three or more speeding tickets over the past three years, your best bet is to get a quote from Allstate or State Farm and then ask an independent agent to try to beat it.

Most agents regularly work with six or seven companies and sometimes can cajole one of them into beating the quote. You can find the telephone numbers of independent agents in your local yellow pages under "insurance agencies."

Agency writers

Many companies sell their insurance primarily through independent agents. They range from giants such as Travelers and The Hartford to tiny mutual companies with names like A. Central Insurance. These insurers pay substantial commissions to the independent agents.

But an independent agent can be a wealth of information on deals in your market, and if you have a troubled record, an agent can sometimes be the best way to find coverage at a reasonable rate.

Some examples: You can be the right sort of risk -- a nonsmoker in your 40s with a clean driving record, two cars and a home you own -- and lose out because you share that home with a teenager.

Continued: Last-resort insurance

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