Dirty Insurance Secret #1: The 6x Price Difference
Imagine shopping for a car — same year, make and model, same options, even same color — from 3 different car dealers. One quotes you a price of $20,000, another $40,000 and a third $120,000. Crazy, right? Well, that’s exactly what happens with auto insurance.
I call it Dirty Insurance Secret #1 — the 6 x difference. And younger drivers can really get hit hard.
In an independent study of car insurance prices conducted by the Consumer Federation of America , the price differences among insurance companies for the same person, same car and same coverage varies by this amount and more!
Here’s an example for one driver in Minneapolis, MN when comparing prices from just 5 well known insurance brands:
And there’s two other dirty secrets — there are nearly 400 insurance companies, not just five, out there — many with excellent financial and customer ratings. And the least expensive brand for one person may be the most for another, and that can change from area to area and even ffor the same person over time.
Dirty Insurance Secret #1: The 6x price difference. It’s real. And there’s a way to protect yourself. Stay tuned.
Dirty Insurance Secret #1: The 6x Price Difference was originally published in Uncle Jon “Insurance Hacker” Ansell’s Tips on Medium, where people are continuing the conversation by highlighting and responding to this story.