No normal person looks forward to buying insurance coverage, especially knowing they could lower their rates if they shopped around.
You have multiple auto insurance companies to buy insurance from, and even though it’s nice to have multiple companies, it makes it harder to get the best deal.
Lots of things are used in the calculation when premium rates are determined. Some of the criteria are obvious like an MVR report, but other criteria are less apparent like where you live or your commute time.
Shown below are some of the factors insurance coverage companies consider when setting your premiums.
The quickest way to get rate comparisons takes advantage of the fact almost all companies pay for the opportunity to give free rates quotes. All you need to do is provide the companies a bit of rating information such as if you’re married, if you have an active license, how you use your vehicles, and types of safety features. The data gets transmitted to insurance carriers in your area and you receive quotes very quickly.
Insurance providers like State Farm, GEICO and Progressive seem to constantly run television and radio advertisements. They all seem to make an identical promise that drivers will save a bundle if you just switch your coverage to them. How do they all claim to save you money? This is the trick they use.
Insurance companies have strict underwriting profiles for the driver that is profitable for them. For example, a profitable customer should be a mature driver, has a clear driving record, and drives less than 5,000 miles a year. Any driver who matches that profile receives the best premium rates and have a good chance to save money with a new company.
Potential customers who do not meet these criteria must pay higher prices and this can result in business not being written. If you pay close attention to the ads, they say “people that switch” not “everyone who quotes” save that much when switching. That’s the way companies can state the savings. Each company has different criteria, so drivers must compare free insurance quotes often. It’s not possible to predict with any certainty which company will have the best rates.
Car insurance can cost a lot, but there may be some discounts that can drop the cost substantially. Some trigger automatically when you complete an application, but lesser-known reductions have to be asked about prior to getting the savings.
Consumers should know that most credits do not apply to your bottom line cost. Most only reduce the price of certain insurance coverages like liability, collision or medical payments. So even though it sounds like you would end up receiving a 100% discount, car insurance companies aren’t that generous. Any amount of discount will bring down your policy premiums.
For a list of car insurance companies with discount car insurance rates, click here to view.
When buying adequate coverage for your vehicles, there isn’t really a perfect coverage plan. Every situation is different so this has to be addressed. These are some specific questions can help discover if you might need an agent’s assistance.
If you can’t answer these questions but you know they apply to you then you might want to talk to an insurance agent. If you don’t have a local agent, complete this form or go to this page to view a list of companies.
Knowing the specifics of your policy aids in choosing appropriate coverage and the correct deductibles and limits. Car insurance terms can be confusing and nobody wants to actually read their policy. These are typical coverage types found on most car insurance policies.
Comprehensive auto coverage – This covers 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 coverage protects against claims such as a broken windshield, rock chips in glass, falling objects, fire damage and hail damage. The highest amount you’ll receive from a claim is the cash value of the vehicle, so if the vehicle’s value is low it’s probably time to drop comprehensive insurance.
Collision coverages – This will pay to fix damage to your Grand Cherokee caused by collision with a stationary object or other vehicle. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision coverage protects against things like backing into a parked car, hitting a parking meter and colliding with a tree. This coverage can be expensive, so you might think about dropping it from vehicles that are 8 years or older. Drivers also have the option to choose a higher deductible to save money on collision insurance.
Medical payments and PIP coverage – Personal Injury Protection (PIP) and medical payments coverage reimburse you for short-term medical expenses like EMT expenses, prosthetic devices and X-ray expenses. They are often 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 and will also cover getting struck while a pedestrian. PIP is only offered in select states but can be used in place of medical payments coverage
Coverage for liability – This coverage protects you from damage that occurs to people or other property that is your fault. This coverage protects you from claims by other people, and does not provide coverage for damage to your own property or vehicle.
It consists of three limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You might see limits of 25/50/25 that translate to $25,000 in coverage for each person’s injuries, a total of $50,000 of bodily injury coverage per accident, and $25,000 of coverage for damaged propery.
Liability coverage protects against things such as repair costs for stationary objects, structural damage, repair bills for other people’s vehicles, bail bonds and emergency aid. How much liability should you purchase? That is up to you, but you should buy higher limits if possible.
UM/UIM (Uninsured/Underinsured Motorist) coverage – This coverage protects you and your vehicle when the “other guys” are uninsured or don’t have enough coverage. Covered claims include injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Since a lot of drivers 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 is important protection for you and your family.
You just read a lot of information how to reduce 1998 Jeep Grand Cherokee insurance premium rates online. The most important thing to understand is the more you quote insurance, the better likelihood of getting inexpensive insurance. Consumers could even find that the best price on auto insurance is with the smaller companies. These smaller insurers can often insure niche markets at a lower cost than their larger competitors like Allstate, GEICO and Progressive.
As you quote insurance, never buy poor coverage just to save money. In many cases, an insured dropped full coverage only to find out that the savings was not a smart move. Your focus should be to purchase plenty of coverage at a price you can afford, but don’t skip important coverages to save money.
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