June 15, 2008
Buying car insurance
Lately I’ve been shopping around for car insurance. It’s amazing how much the premium varies from one insurer to another! At first, I was quite skeptical about this whole call-as-many-companies-as-you-can practice when it comes to car insurance. I always thought that, in an open and competitive market, the price of a commoditiy (e.g. car insurance), would reach a equilibrium point where there is no major incentive for a big player to either raise or lower its own price from the equilibrium point. Changing the price would just increase or decrease the demand, at the expense of the company’s profit.
However, with just a few calls and mouse clicks, I managed to get quotes as high as $1600/year and as low as $850/year – all for the exact SAME coverage. That’s almost 2X difference! Needless to say, I went with the lowest bidder.
Want to know which company was the lowest bidder?
Start shopping around and find out!!
Comments(3)
Our insurance agent is very good and not very expensive. He’s Mike Zhoe, Farmers Insurance. Is he the one?
Oops.. I forgot to call Farmers Insurance.. dohh.. I’ll try it out sometime this week.
Thanks for the information!
Sorry,It’s Mike Zhao. (408)205-5951.