If you’re new to shopping for auto insurance quotes online, you may be bewildered thanks to all the different types local agents and online companies selling insurance.
It’s important to compare rates every six months because insurance prices tend to go up over time. Just because you had the best rates for 7 Series insurance at your last renewal there is a good chance you can find better premium rates now. Ignore everything you know about car insurance because I’m going to let you in on the secrets to the quickest way to buy cheaper car insurance.
Buying car insurance is not rocket science. Basically, every driver who is required by state law to have insurance most likely will be able to reduce their rates. But car owners must understand the way insurance companies price online insurance because it can help you find the best coverage.
Performing a rate comparison can be a daunting task if you don’t know the best way to get rate quotes. You can waste hours discussing policy coverages with insurance companies in your area, or you could use the web to achieve your goal.
Most major companies are enrolled in a marketplace where insurance shoppers enter their coverage request one time, and at least one company then gives them pricing based on that information. This system prevents you from having to do quotation requests to each company. To find out how much you can save on auto insurance click here to start a free quote.
The single downside to comparing rates this way is that you can’t choose the providers to get quotes from. So if you want to choose individual companies for rate comparison, we have assembled a list of low cost auto insurance companies in your area. View list of insurance companies.
The method you choose is up to you, but double check that you are using apples-to-apples coverage limits and deductibles for each quote you get. If you compare different data it will be next to impossible to decipher which rate is best. Slightly different insurance coverages or limits may cause a big price difference. And when quoting auto insurance, remember that obtaining a wide range of quotes increases the change that you will find better pricing.
Some insurance providers don’t always advertise all disounts very clearly, so we researched some of the best known and the more hidden credits that you can use to lower your rates. If you aren’t receiving every discount you deserve, you’re just leaving money on the table.
Discounts lower rates, but many deductions do not apply to the entire cost. Most cut the cost of specific coverages such as liability, collision or medical payments. If you do the math and it seems like adding up those discounts means a free policy, it doesn’t quite work that way.
To find insurers that offer some of these discounts, click this link.
When buying coverage, there is no perfect coverage plan. Everyone’s situation is unique.
Here are some questions about coverages that could help you determine if your situation will benefit from professional help.
If it’s difficult to answer those questions but you think they might apply to your situation, then you may want to think about talking to an agent. If you want to speak to an agent in your area, simply complete this short form.
Lots of factors are used when you get your auto insurance bill. Some factors are common sense such as traffic violations, but others are not as apparent such as your credit history or how safe your car is.
The itemized list below are some of the most rate-impacting factors auto insurance companies consider when setting your premiums.
Knowing the specifics of your insurance policy aids in choosing which coverages you need and proper limits and deductibles. The coverage terms in a policy can be confusing and even agents have difficulty translating policy wording.
Collision coverage – Collision coverage pays to fix your vehicle from damage resulting from colliding with another car or object. You have to pay a deductible and the rest of the damage will be paid by collision coverage.
Collision coverage protects against claims such as colliding with another moving vehicle, crashing into a building, backing into a parked car, crashing into a ditch and rolling your car. Collision is rather expensive coverage, so consider removing coverage from vehicles that are 8 years or older. It’s also possible to increase the deductible to get cheaper collision coverage.
Coverage for uninsured or underinsured drivers – Your UM/UIM coverage protects you and your vehicle from other drivers when they either are underinsured or have no liability coverage at all. It can pay for injuries to you and your family and damage to your 1993 BMW 7 Series.
Because many people have only the minimum liability required by law, it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage should not be overlooked.
Comprehensive insurance – Comprehensive insurance coverage pays to fix your vehicle from damage from a wide range of events other than collision. You first must pay your deductible and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage pays for things like falling objects, rock chips in glass, fire damage and damage from getting keyed. The maximum payout you’ll receive from a claim is the cash value of the vehicle, so if your deductible is as high as the vehicle’s value consider dropping full coverage.
Liability coverages – Liability insurance will cover damage or injury you incur to other people or property by causing an accident. This insurance protects YOU against claims from other people. Liability doesn’t cover your injuries or vehicle damage.
It consists of three limits, bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. Your policy might show limits of 100/300/100 which means $100,000 in coverage for each person’s injuries, a per accident bodily injury limit of $300,000, and $100,000 of coverage for damaged propery.
Liability insurance covers things such as structural damage, bail bonds and funeral expenses. How much liability should you purchase? That is a personal decision, but it’s cheap coverage so purchase as high a limit as you can afford.
Coverage for medical expenses – Med pay and PIP coverage provide coverage for immediate expenses for things like prosthetic devices, doctor visits, EMT expenses, dental work and funeral costs. They are used to cover expenses not covered by your health insurance program or if there is no health insurance coverage. It covers all vehicle occupants and also covers being hit by a car walking across the street. PIP coverage is not available in all states but can be used in place of medical payments coverage
Lower-priced insurance is available from both online companies and from local agencies, so you need to shop auto insurance with both to have the best rate selection. A few companies may not have the ability to get a quote online and many times these small insurance companies only sell coverage through independent agents.
When buying insurance coverage, don’t be tempted to skimp on critical coverages to save a buck or two. There have been many cases where an insured dropped liability limits or collision coverage and found out when filing a claim that they should have had better coverage. Your goal should be to buy a smart amount of coverage for the lowest cost, not the least amount of coverage.
People switch companies for many reasons like questionable increases in premium, denial of a claim, an unsatisfactory settlement offer or even high prices. Regardless of your reason for switching companies, finding a new company is not as hard as you think.
To learn more, take a look at the resources below: