Call it a “rule of thumb”: As you shop for insurance, compare and contrast at least five quotes from companies you know and trust.

The mnemonic device derives from the idea that, if you count insurance quotes on your fingers, you will get to the thumb. The same rule applies to your points of comparison and contrast: Look at five key variables that influence your premiums and coverage. Working the combination of five quotes and five variables, you actually come out with 120 different bottom line figures.

More importantly, though, “the rule of thumb” reminds you that a series of careful analytic steps will assure the fabled fifteen minutes you spend comparing insurance carriers definitely will save you hundreds in premiums without compromising the quality of your coverage. Because most people shop for auto, homeowners’, and life insurance strictly according to expedients, thinking “do it fast and get it cheap,” “the rule of thumb” guarantees you study your options carefully and get the best value for your insurance dollars. Do not decide by price alone. You also must assess your satisfaction with your agent’s and company’s services. If you must file a large claim, those qualities will matter far more than a few dollars a month.

A range of five quotes
Experts suggest the companies you recognize will offer the best combination of price, stability, and service. If the little green creature, the good neighbor, and Flo inspire your confidence, work with them. In fact, industry analysts say, because the difficult economy has forced many families to let their insurance lapse, the nation’s biggest insurance companies are deep-discounting even their best coverage for preferred buyers. They also note the very few dollars you save with a fly-by-night company matter very little if you cannot file a claim or get professional assistance after an accident.

Five key variables
The largest companies’ websites provide user-friendly tools for serious number-crunching. Use those tools to see how standard adjustments to coverage influence your premiums. Following “the rule of thumb,” apply five variables.

1. Deductibles—First, assess the impact of raising the deductibles. A change from $500 per occurrence to $1000 can influence your premium as much as $50 per month. Exercise caution, though. If you raise your deductible so high it puts car repair or home repair out of reach when you have an accident, your savings become added cost and headache.

2. Limits—Then, look at adjusting the limits of your coverage, using realistic estimates of your property’s and vehicle’s actual value. As you examine liability coverage, try to stay close to the minimum legal requirements.

3. Add-ons—Third, determine which add-ons genuinely have value and which you do not really need. Do you really need rental car coverage; how urgent is car-stereo replacement?

4. Discount programs—Next, check your eligibility for special discount programs according to your age, professional affiliations, driving record, and purchase of multiple policies. “Bundling” your car and home insurance, for example, does typically save the equivalent of one month’s premium. If you belong to AARP, a building trades union, or another major professional organization, the insurance companies usually will not show your special discounts on their websites, but the organizations’ websites will show you significant savings. Make sure you check them.

5. D-I-Y features—When you take initiative to protect your property and vehicle, the insurance companies reward you with discounts. An alarm in your car saves money; a GPS tracking device saves even more. Security lighting and tall fencing around your home and yard pay for themselves in insurance savings.

One principle of choice
After you have crunched the numbers and analyzed the results, the highest and lowest numbers will jump off the page, triggering quick rejection of the big money policies and deep doubt about the low-ball offers. Reject them, and then try to strike a balance, looking for maximum coverage at minimum price. Yes, the process will take more than fifteen minutes, but the savings may reach to four digits.

Author Gina Hamilton is a credit counselor and also contributes to comparison sites. Kanetix auto insurance quotes online provides information and quotes for the U.S. and Canadian health and life insurance as well.