Qnt 561 - Decision of Uncertainty - Which Car Insurance Company to Buy Insurance From

Decision of Uncertainty

QNT/561

Decision: Which car insurance company to buy insurance from

My current car insurance policy is about to expire. I have decided to change from my current insurance company and need to purchase a new policy that would be the most economical for me to have for my 11 year old Honda civic. Because I do not have an outstanding loan on my car and because of the age of the car I have decided to reduce the amount of insurance coverage from full coverage insurance to that is required by the state of Florida. The company I choose will be the one that offers me the most coverage for the best cost. In addition to the cost I am also looking for a low out of pocket deductible so that in the event of an accident I do not have to pay a lot of out of pocket expense. Because I have chose to decrease the amount of insurance coverage on my car I will lose some of extra benefits like roadside assistance cover, road side assistance coverage, and comprehensive coverage. Although, I will lose these benefits I feel that I would spend for these individual benefits monthly instead of on an as needed basis.

After careful consideration and looking at the amount of coverage and financial benefits that I would gain from the policy as well as my out of pocket expense I decided to insure my car with Esurance, because it offered more coverage for my vehicle and the out of pocket deductible expense was lower than that of Geico.

Research: To help me determine the rates of my potential insurance companies.

To help me with my decision I did some online research. I look into companies that I was most familiar with and that had a good reputation with their customers. I look for companies that offered a 6 month policy that I could make a down payment and monthly payments. After my investigation I requested quotes from two companies that offer the type of insurance I was looking for. The two companies that I requested quotes from were Geico and Esurance both companies have a reputation for providing customers with low price, quality insurance.

Here is how the two companies compared to one another:

Geico Esurance

Bodily Injury $10,000/$20,000 $50,000/$10,000

Property Damg. $10,000 $50,000

PIP $10,000/ $1,000 ded. $10,000/$500

Total Prem. $829.65/6 months coverage $857.98/6 months coverage

Monthly Paymt.