How much more is it costing me to have the services of a professional agent, rather than just buying my insurance on the internet or by mail?

So, I thought I would do a little test of my own auto insurance, just to see how much I could save by going with the gecko. I tried four different online insurance systems: esurance, Geico, Costco (Ameriprise) and Progressive.com, which gave me quotes for Progressive, Farmers, Liberty Mutual and State Farm.

Here is what I found out!

First, it is fairly easy to get online quotes. Since I didn’t actually buy a policy, I can’t tell you if that process is difficult or not. I did have to give them my name and email address, so we’ll see how many emails I get!

Here is how the prices compared with what I’m currently paying. I have two cars, two drivers (my wife and myself) and neither of us have any tickets or accidents during the past five years. One car is rated business and the other is rated pleasure use. I chose coverages that were as close to my current coverages as they offered. One problem with the online companies is that they don’t all offer high enough limits for me … and typically they eliminate medical payments coverage to reduce premiums.

Geico: +$66
esurance: +$64 (lower liability limits)
Costco: +$40 (this was the lowest of all)
Progressive: +$560
Farmers: +$1100
Liberty Mutual: +$800
State Farm: +$750

The moral of the story: I’m paying less WITH the services of a professional agent. The reason for this is that the insurance company pays me to place your business with them. You don’t pay my commission, the company does.