by Kay Daniels

Created on: November 21, 2008   Last Updated: April 25, 2011

Like most things in life, when it comes to car insurance, the cheapest is not always the best. While your ultimate goal may be to find the best rate possible, there is certainly more to consider than price alone.

The insurance industry is currently in a "soft market" which means they are competing for your business so, as the consumer, you are definitely at an advantage. But choosing a policy can be overwhelming, especially since you have so many options available to you. Not only are there different types of policies, there are different types of agents and companies for you to choose from, and rates can vary considerably.

1. Insurance Agents

The easiest way to shop for car insurance is to have an agent do the shopping for you. An agent will be able to assist you with determining the limits and deductibles that are right for you and to explain any coverage you do not understand.

There are two types of insurance agents. A captive agent represents a single insurance company and will usually only be able to provide you with a quote from that company. But don't rule out a captive agent - the rates can be competitive. An independent agent has access to many markets and will be able to provide you with quotes from several insurance carriers.

Skip the yellow pages. You want - and should have no trouble finding - an agent that comes highly recommended by a reliable source. Ask your friends, neighbors, co-workers and family members about their agents. People are always happy to tell you about good service as well as bad.

2. Direct Carriers

Another way to shop for car insurance is through a direct carrier. Direct carriers such as Geico and Safe Auto forego the agent and you deal directly with their customer service department, which may not be local. Direct carriers' rates may be lower since there is no commission being paid to an agent, but not only will you be sacrificing personal service and the sound advice of an experienced agent, you may never speak to the same person twice. If this is okay with you, then by all means, you should consider a direct carrier. Direct carriers may recommend that you carry only the minimum limits required by your state, but this may not be enough coverage. You don't want to be underinsured.

Before committing to a direct carrier, always research the company to find out whether they have had issues with customer service, claims service and whether there have been complaints regarding their billing practices. Keep in mind that some insurance

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