Locating the most affordable auto insurance online can seem to be overwhelming for consumers who are new to comparing prices on the web. When there are so many companies in the marketplace, how can consumers have a chance to compare every company to locate cheaper auto insurance prices?
You need to price shop coverage on a regular basis due to the fact that insurance rates change frequently. Even if you got the best rate for Tercel coverage a couple years back the chances are good that you can find a lower price today. Forget anything you know (or think you know) about auto insurance because I’m going to teach you one of the quickest ways to find better rates and still maintain coverage.
Buying car insurance is easy if you know what you’re doing. If you currently have a car insurance policy, you will be able to reduce your rates substantially using these methods. Although car owners need to have an understanding of how big insurance companies sell online because it can help you find the best coverage.
Some companies don’t always publicize all disounts in an easy-to-find place, so the next list breaks down some of the more common and the more hidden discounts you could be receiving when you buy auto insurance online.
As a footnote on discounts, some credits don’t apply to your bottom line cost. Most only apply to specific coverage prices like liability, collision or medical payments. Just because it seems like all those discounts means the company will pay you, it doesn’t quite work that way.
A list of insurance companies and some of the discounts are outlined below.
It’s a good idea to ask every insurance company what discounts are available to you. Some of the discounts discussed earlier may not be offered everywhere. If you would like to see a list of insurers that have a full spectrum of discounts, click this link.
When it comes to buying proper insurance coverage for your personal vehicles, there really is no one size fits all plan. Your needs are not the same as everyone else’s.
For example, these questions may help you determine if your insurance needs might need professional guidance.
If you can’t answer these questions but one or more may apply to you then you might want to talk to an agent. If you don’t have a local agent, simply complete this short form.
Respected companies like State Farm and Allstate constantly bombard you with ads on television and other media. All the ads make the point about how much you will save if you get a free auto insurance quote and switch your coverage. How is it possible that every company can charge less that you’re paying now? It’s all in the wording.
Companies quote their cheapest rates for the type of driver that will be a good risk. A good example of a profitable customer may be over the age of 40, insures multiple vehicles, and drives a lower-performance vehicle. A customer getting a price quote who meets those qualifications will probably get cheap premium rates and will most likely cut their rates substantially.
Potential customers who fall short of the requirements will probably be forced to pay more expensive rates which leads to the customer buying from someone else. The ad wording is “people that switch” not “everybody who quotes” save money. This is how insurance companies can confidently advertise the savings. This illustrates why you really should get a wide range of price quotes. Because you cannot predict the company that will be your best fit.
Knowing the specifics of insurance helps when choosing which coverages you need at the best deductibles and correct limits. The coverage terms in a policy can be impossible to understand and coverage can change by endorsement.
Coverage for liability
Liability coverage protects you from injuries or damage you cause to people or other property that is your fault. It protects YOU from legal claims by others. It does not cover your own vehicle damage or injuries.
Split limit liability has three limits of coverage: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. You might see policy limits of 100/300/100 which stand for $100,000 bodily injury coverage, a per accident bodily injury limit of $300,000, and a total limit of $100,000 for damage to vehicles and property.
Liability can pay for claims such as structural damage, bail bonds, court costs, medical services and funeral expenses. How much coverage you buy is a personal decision, but consider buying as large an amount as possible.
UM/UIM (Uninsured/Underinsured Motorist) coverage
This coverage protects you and your vehicle when other motorists either are underinsured or have no liability coverage at all. It can pay for injuries to you and your family as well as your vehicle’s damage.
Since a lot of drivers carry very low liability coverage limits, their liability coverage can quickly be exhausted. So UM/UIM coverage is very important.
Collision coverage protection
This coverage will pay to fix damage to your Tercel caused by collision with a stationary object or other vehicle. You first must pay a deductible then the remaining damage will be paid by your insurance company.
Collision coverage pays for claims like hitting a mailbox, hitting a parking meter and scraping a guard rail. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from vehicles that are 8 years or older. Another option is to increase the deductible in order to get cheaper collision rates.
Medical payments and PIP coverage
Medical payments and Personal Injury Protection insurance provide coverage for immediate expenses for things like pain medications, hospital visits, doctor visits and ambulance fees. The coverages can be used in conjunction with a health insurance program or if you are not covered by health insurance. Medical payments and PIP cover all vehicle occupants as well as being hit by a car walking across the street. Personal Injury Protection is not universally available and may carry a deductible
Comprehensive auto coverage
This pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You need to pay your deductible first then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage pays for claims such as damage from a tornado or hurricane, fire damage, hail damage and hitting a deer. The highest amount you’ll receive from a claim is the market value of your vehicle, so if the vehicle’s value is low consider removing comprehensive coverage.
Consumers switch companies for any number of reasons including denial of a claim, unfair underwriting practices, extreme rates for teen drivers and even policy cancellation. No matter why you want to switch, choosing a new company is actually quite simple.
More affordable car insurance can be purchased from both online companies and from local agencies, and you should compare rates from both in order to have the best price selection to choose from. Some car insurance companies may not have online quoting and usually these regional insurance providers only sell coverage through independent insurance agencies.
While you’re price shopping online, it’s not a good idea to reduce needed coverages to save money. There are a lot of situations where consumers will sacrifice comprehensive coverage or liability limits to discover at claim time that the savings was not a smart move. The ultimate goal is to find the BEST coverage at the best price, but don’t skip important coverages to save money.
More detailed car insurance information can be found in these articles: