Rate Shopping Comparison

We are bombarded with television advertisements from insurance companies who sell car insurance directly to the public. Do such companies offer a better value compared to insurance companies who use agents exclusively to sell policies locally in your community?

Some car insurance shoppers may assume this is true, so we decided to put these companies to the test. We evaluated insurance rates from GEICO, Esurance, and Progressive Direct, companies that sell mainly to the public directly, (although all 3 companies mentioned here also sell through agents) with companies who exclusively use agents to sell insurance policies namely State Farm, Nationwide, Farmers Insurance, Grange Mutual, Encompass, and American Commerce Insurance Company.

This actual car insurance comparison is based on a married couple living in the suburbs of Cincinnati Ohio, with no tickets or accidents in a 5 year period. Vehicles quoted are a 2008 Acura TL, and a 2004 Honda Pilot EXL. Coverage limits are 250/500/100 with matching uninsured and underinsured limits. $100 comprehensive and $500 collision deductible. Loan/Lease gap coverage and finally road side assistance plus car rental is included. (Neither State Farm or Nationwide offers lease/ loan gap coverage)

Name of Company and Monthly Price

Esurance – $114.37
GEICO – $113.75
Progressive Direct – $109.19

Nationwide – $127.45
Farmers – $117.84
State Farm – $107.22

Grange Mutual – $99.80
Encompass – $81.83
American Commerce – $73.00

In this case study, the assumed price advantage is not evident with companies such as GEICO, Esurance, and Progressive Direct when rates are compared with other companies who exclusively use agents to sell coverage.

In all fairness, a similar comparison in other parts of the country, or with different coverage circumstances may not yield comparable results as insurance companies use so many variable factors to set rates. So you should not rely exclusively on this simple case study as an indication of the competitiveness of the companies indicated. Rates vary by type of cars owned, specific rating territory, credit levels, coverage limits, and frankly too many other factors to mention.

However in this specific example a better rate can be obtained by companies using agents compared to buying directly from the insurance company.

The Agent Gurus Network recommends that you care for your insurance needs by using a local insurance professional versus a company that sells policies exclusively online or by the telephone.

It is our opinion that reviewing your coverage needs with a local professional insurance agent is a better option even if you need to spend a few extra dollars. Click Here to receive an insurance comparison from a local agent in your area.