Consumers who are new to buying auto insurance online are likely to discover locating affordable car insurance is harder than they anticipated.
Many things are taken into consideration when you quote your car insurance policy. Some are pretty understandable like an MVR report, but other factors are more transparent like your continuous coverage or your commute time.
Listed below are some of the factors used by insurance companies to determine rates.
Some providers don’t always advertise every policy discount very well, so we break down both well-publicized and the more hidden discounts that you can inquire about if you buy car insurance online. If you do not check that you are getting every discount available, you’re just leaving money on the table.
One thing to note about discounts is that some credits don’t apply to the overall cost of the policy. Some only apply to individual premiums such as comprehensive or collision. So even though it sounds like you would end up receiving a 100% discount, that’s just not realistic.
To choose companies with discount rates, follow this link.
21st Century, Allstate and State Farm regularly use ads in print and on television. All the companies convey the message that you’ll save big if you change your coverage. How does every company charge you less for car insurance?
Many companies give the cheapest rates for the type of customer that will most likely be profitable. For instance, a profitable risk profile might be described as between the ages of 30 and 50, has no prior claims, and drives newer vehicles. Any new insured that hits that “sweet spot” gets the lowest rates and therefore will cut their rates substantially.
Drivers who are not a match for the ideal profile may receive more expensive rates and this results in the customer not purchasing. The trick companies use is to say “drivers who switch” but not “everyone who gets a quote” can save as much as they claim. This is how companies can make those claims. Each company has different criteria, so it’s extremely important to get a wide range of price quotes. It’s just not possible to know which company will have the lowest premium rates for your situation.
When it comes to choosing coverage, there really is no best way to insure your cars. Each situation is unique.
For instance, these questions may help you determine whether your personal situation might need an agent’s assistance.
If you can’t answer these questions, you may need to chat with a licensed agent. To find an agent in your area, fill out this quick form.
Knowing the specifics of your auto insurance policy helps when choosing appropriate coverage and the correct deductibles and limits. Policy terminology can be impossible to understand and even agents have difficulty translating policy wording.
Collision coverage – Collision coverage will pay to fix damage to your Sierra 1500 resulting from a collision with another vehicle or an object, but not an animal. You have to pay a deductible then your collision coverage will kick in.
Collision coverage pays for things like scraping a guard rail, colliding with a tree, hitting a parking meter and damaging your car on a curb. This coverage can be expensive, so analyze the benefit of dropping coverage from vehicles that are older. Drivers also have the option to choose a higher deductible to save money on collision insurance.
Comprehensive (Other than Collision) – Comprehensive insurance pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage protects against claims like falling objects, damage from a tornado or hurricane and theft. The highest amount a auto insurance company will pay at claim time is the cash value of the vehicle, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.
Protection from uninsured/underinsured drivers – Uninsured or Underinsured Motorist coverage provides protection from other drivers when they are uninsured or don’t have enough coverage. This coverage pays for medical payments for you and your occupants as well as your vehicle’s damage.
Due to the fact that 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.
Medical expense insurance – Personal Injury Protection (PIP) and medical payments coverage kick in for bills like hospital visits, rehabilitation expenses and EMT expenses. The coverages can be utilized in addition to your health insurance plan or if you lack health insurance entirely. Coverage applies to not only the driver but also the vehicle occupants in addition to being hit by a car walking across the street. Personal Injury Protection is only offered in select states but can be used in place of medical payments coverage
Liability coverage – This provides protection from injuries or damage you cause to a person or their property in an accident. This coverage protects you against other people’s claims. It does not cover damage to your own property or vehicle.
Liability coverage has three limits: per person bodily injury, per accident bodily injury, and a property damage limit. You might see policy limits of 100/300/100 which stand for a $100,000 limit per person for injuries, a total of $300,000 of bodily injury coverage per accident, and property damage coverage for $100,000.
Liability can pay for things like legal defense fees, bail bonds, loss of income and medical expenses. How much coverage you buy is a decision to put some thought into, but buy as high a limit as you can afford.
People switch companies for many reasons like delays in paying claims, an unsatisfactory settlement offer, high rates after DUI convictions and policy non-renewal. Regardless of your reason for switching companies, switching car insurance companies is not as difficult as it may seem.
When searching for affordable car insurance quotes, don’t be tempted to buy poor coverage just to save money. In too many instances, drivers have reduced physical damage coverage and learned later that a couple dollars of savings turned into a financial nightmare. The aim is to buy enough coverage for the lowest price, not the least amount of coverage.
You just learned many ways to save on 2001 GMC Sierra 1500 insurance. The key concept to understand is the more companies you get rates for, the better your comparison will be. You may even discover the lowest prices are with a lesser-known regional company.
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