Nobody likes paying for car insurance, especially when they know the cost is too high. You have so many insurance companies to choose from, and although it’s nice to be able to choose, it can be more challenging to compare company pricing.
Lots of factors are part of the equation when pricing auto insurance. Some are pretty understandable like a motor vehicle report, but other factors are not quite as obvious like your continuous coverage and annual miles driven.Smart consumers have a good feel for the factors that aid in calculating the level of your policy premiums. When you know what positively or negatively influences your rates, this helps enable you to make changes that may result in better auto insurance rates.
The following are some of the items used by insurance companies to determine premiums.
The cost of insuring your cars can be expensive, but you can get discounts that you may not know about. Some discounts apply automatically when you quote, but lesser-known reductions have to be asked for prior to receiving the credit.
One last thing about discounts, some of the credits will not apply to the overall cost of the policy. A few only apply to the cost of specific coverages such as collision or personal injury protection. If you do the math and it seems like having all the discounts means you get insurance for free, insurance companies wouldn’t stay in business.
The best car insurance companies and some of the discounts can be read below.
If you need lower rates, check with each company or agent to apply every possible discount. Some discounts might not be offered in every state. To choose insurance companies that offer many of these discounts, click here to view.
When choosing the right insurance coverage, there really is no “best” method to buy coverage. Every insured’s situation is different so this has to be addressed. For instance, these questions may help you determine whether you might need professional guidance.
If it’s difficult to answer those questions but a few of them apply, then you may want to think about talking to an insurance agent. To find lower rates from a local agent, take a second and complete this form or go to this page to view a list of companies. It is quick, free and you can get the answers you need.
Understanding the coverages of your insurance policy can help you determine which coverages you need and proper limits and deductibles. The terms used in a policy can be impossible to understand and nobody wants to actually read their policy. Below you’ll find the normal coverages found on most insurance policies.
This coverage protects you from damages or injuries you inflict on other’s property or people by causing an accident. It protects you against other people’s claims, and doesn’t cover damage sustained by your vehicle in an accident.
Liability coverage has three limits: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. As an example, you may have values of 50/100/50 that translate to $50,000 in coverage for each person’s injuries, a per accident bodily injury limit of $100,000, and a total limit of $50,000 for damage to vehicles and property. Another option is a combined single limit or CSL which provides one coverage limit without having the split limit caps.
Liability coverage protects against claims like loss of income, emergency aid, medical services and structural damage. The amount of liability coverage you purchase is a personal decision, but it’s cheap coverage so purchase as large an amount as possible.
Medical payments and Personal Injury Protection insurance pay for immediate expenses for funeral costs, ambulance fees, EMT expenses, hospital visits and doctor visits. They are used to cover expenses not covered by your health insurance policy or if there is no health insurance coverage. It covers you and your occupants and will also cover being hit by a car walking across the street. PIP is only offered in select states and gives slightly broader coverage than med pay
Uninsured or Underinsured Motorist coverage protects you and your vehicle from other motorists when they are uninsured or don’t have enough coverage. It can pay for injuries to you and your family and damage to your BMW 8 Series.
Since a lot of 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. Usually your uninsured/underinsured motorist coverages are identical to your policy’s liability coverage.
This will pay to fix damage to your 8 Series resulting from a collision with another car or object. You first must pay a deductible then your collision coverage will kick in.
Collision coverage protects against claims like hitting a mailbox, driving through your garage door and crashing into a ditch. Paying for collision coverage can be pricey, so you might think about dropping it from vehicles that are 8 years or older. It’s also possible to bump up the deductible to save money on collision insurance.
Comprehensive insurance coverage will pay to fix damage OTHER than collision with another vehicle or object. You first must pay your deductible then your comprehensive coverage will pay.
Comprehensive coverage pays for claims such as hail damage, hitting a deer, falling objects, a broken windshield and vandalism. The maximum amount you can receive from a comprehensive claim is the market value of your vehicle, so if your deductible is as high as the vehicle’s value consider dropping full coverage.
While you’re price shopping online, never buy less coverage just to save a little money. In too many instances, someone sacrificed uninsured motorist or liability limits to discover at claim time that saving that couple of dollars actually costed them tens of thousands. The proper strategy is to purchase plenty of coverage at the best price, but do not sacrifice coverage to save money.
Cheaper car insurance can be bought on the web in addition to many insurance agents, and you should compare rates from both so you have a total pricing picture. Some car insurance companies don’t offer rates over the internet and usually these small, regional companies provide coverage only through independent insurance agents.