Find a great price on car insurance

"Most companies won't refuse to add a teenager to the parents' policy," says Ron Sundermann, an independent agent in Cedar Rapids, Iowa. "But to get out of the business, some companies will simply quadruple the rates for teens if they're the principal user of the car."

An agent who knows the market can help find a better deal.

If you live in a rural area, you're probably better off with a local company. "Mass-market companies are not comfortable with the 'unknowns' of a rural area," explains Rick Blank, an independent agent at NFP Property & Casualty Services in White Plains, N.Y. "It's hard to get a company like that to say yes to you. There are little mutual companies in an area that have good prices, and they understand the market, which isn't as attractive to a mass marketer."

Last resorts

If your driving record is a disaster, if you've never had auto insurance before or if you're male, single and younger than 25, you'll be an untouchable to most insurers. Sure, they'll write you a policy. That'll be $5,000, please.

Fortunately, there are several companies set up exclusively to handle nonstandard risks. And if all else fails, you can usually sign up with your state's assigned-risk plan (check with your state's department of insurance for numbers).

In all such cases, you'll pay much more than you would in a lower risk group. But you can work your way to a better rate in as little as three years.

Here are some of the biggest writers of nonstandard policies:

• State Farm Fire and Casualty, Bloomington, Ill. (Find a local number in the Yellow Pages.) The largest auto insurer overall, State Farm also runs a high-risk-market division. It offers nonstandard customers a range of services but will deny coverage to those with drunken driving on their records.

• Progressive Insurance, Mayfield Village, Ohio (1-800-776-4737). Though some companies decline coverage to certain drivers because of their driving histories, Progressive Insurance will offer a quote even to a driver with many accidents or tickets.

• Dairyland Auto, Madison, Wis. (1-800-334-0090). Dairyland, a member of the Sentry Insurance Group, offers coverage in 42 states. It specializes in insuring drivers with "inconsistent payment histories" and those with multiple tickets. So if you've had your fair share of encounters with the police, it might be worth giving Dairyland Auto a call. This is also one of the few companies out there offering month-to-month policies. If you already have insurance and are in the market for a new provider, be sure to ask about transfer discounts. In many states, Dairyland Auto offers discounts for policy transfers.

Published Aug. 1, 2008

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