Are you sick and tired of scraping the payment together to pay high auto insurance rates every month? You are no different than the majority of other drivers. Insurance companies such as GEICO, 21st Century and Progressive all claim big savings, bombarding you with catchy ads and consumers find it hard to ignore the flying pigs and cute green geckos and take the time to shop coverage around.
Part of the insurance coverage buying process is learning some of the elements that are used to determine your policy premiums. If you know what impacts premium levels, this allows you to make good choices that may result in cheaper rates.
The factors shown below are some of the items companies use to determine premiums.
Performing a rate comparison can take time and effort if you don’t know the best way to get rate quotes. You could waste a few hours talking to insurance companies in your area, or you could use the web to get the quickest rates.
Many companies participate in an industry program that enables customers to only type in their quote data once, and every company returns a competitive quote determined by their information. This prevents consumers from doing repetitive form submissions to every company.
To participate in this free quote system, click here to open in new window.
The one downside to comparing rates this way is you cannot specify the insurers to get pricing from. If you wish to select specific providers to compare rates, we put together a list of the cheapest insurance companies in your area. Click to view list.
However you get your quotes, be sure to compare the exact same coverage limits with every price quote. If you enter different liability limits then you won’t be able to decipher which rate is best.
Companies that sell car insurance don’t always advertise every policy discount in an easy-to-find place, so the list below gives a summary of both well-publicized and the more hidden credits that may apply to you.
Keep in mind that some of the credits will not apply to the entire policy premium. A few only apply to the cost of specific coverages such as comprehensive or collision. So even though you would think adding up those discounts means a free policy, insurance companies wouldn’t stay in business.
If you would like to see a list of insurers that offer some of these discounts, click this link.
When it comes to choosing the right insurance coverage, there is no “best” method to buy coverage. Everyone’s needs are different so your insurance needs to address that. For instance, these questions may help you determine whether you would benefit from an agent’s advice.
If you’re not sure about those questions but you know they apply to you, you might consider talking to an agent. To find an agent in your area, fill out this quick form or click here for a list of insurance coverage companies in your area. It’s fast, doesn’t cost anything and you can get the answers you need.
Having a good grasp of a insurance policy aids in choosing appropriate coverage and the correct deductibles and limits. The terms used in a policy can be impossible to understand and even agents have difficulty translating policy wording. Shown next are typical coverages offered by insurance companies.
Liability insurance – Liability insurance provides protection from damage or injury you incur to other’s property or people by causing an accident. This coverage protects you from claims by other people, and does not provide coverage for damage to your own property or vehicle.
Coverage consists of three different limits, per person bodily injury, per accident bodily injury, and a property damage limit. Your policy might show liability limits of 50/100/50 that means you have $50,000 bodily injury coverage, $100,000 for the entire accident, and a limit of $50,000 paid for damaged property. Occasionally you may see a combined limit which combines the three limits into one amount with no separate limits for injury or property damage.
Liability can pay for things like attorney fees, loss of income, funeral expenses, repair costs for stationary objects and pain and suffering. How much coverage you buy is a decision to put some thought into, but it’s cheap coverage so purchase as large an amount as possible.
Collision coverage – This will pay to fix damage to your Corvette resulting from a collision with a stationary object or other vehicle. You first must pay a deductible then your collision coverage will kick in.
Collision insurance covers things such as driving through your garage door, colliding with another moving vehicle, hitting a parking meter and crashing into a ditch. This coverage can be expensive, so consider dropping it from older vehicles. Drivers also have the option to raise the deductible to save money on collision insurance.
Uninsured or underinsured coverage – This provides protection when the “other guys” do not carry enough liability coverage. Covered losses include hospital bills for your injuries as well as damage to your Chevy Corvette.
Since many drivers carry very low liability coverage limits, their limits can quickly be used up. That’s why carrying high Uninsured/Underinsured Motorist coverage should not be overlooked. Most of the time these coverages are set the same as your liablity limits.
Comprehensive protection – Comprehensive insurance pays for damage caused by mother nature, theft, vandalism and other events. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive insurance covers things like a tree branch falling on your vehicle, hitting a bird and hitting a deer. The maximum amount you’ll receive from a claim is the ACV or actual cash value, so if the vehicle’s value is low it’s probably time to drop comprehensive insurance.
Medical expense coverage – Medical payments and Personal Injury Protection insurance kick in for expenses for things like EMT expenses, funeral costs, dental work, prosthetic devices and chiropractic care. They can be used to fill the gap from your health insurance policy or if there is no health insurance coverage. It covers not only the driver but also the vehicle occupants as well as getting struck while a pedestrian. PIP coverage is not an option in every state and may carry a deductible
There are still a few companies who may not have internet price quotes and these smaller providers sell through independent insurance agencies. Discount 1994 Chevy Corvette insurance is possible online as well as from insurance agents, and you need to comparison shop both to get a complete price analysis.
As you go through the steps to switch your coverage, do not sacrifice coverage to reduce premiums. There are too many instances where an insured cut physical damage coverage and found out when filing a claim that the small savings ended up costing them much more. The aim is to purchase plenty of coverage at the lowest possible cost while still protecting your assets.
Much more information about insurance coverage is available at the links below