Think you have overpriced auto insurance? You’re preaching to the choir because many consumers are feeling buyer’s remorse and feel like there’s no way out. Since people have many companies to choose from, it can be impossible to pick the most cost effective company.
The quickest method we recommend to compare insurance rates in your area is to take advantage of the fact auto insurance companies will pay a fee to compare rate quotes. To get started, all you need to do is take a few minutes to give details including whether you are single or married, if it has an alarm system, daily mileage, and driver details. Your information is automatically sent to insurance carriers in your area and they return rate quotes very quickly.
Buying car insurance is not cheap, but discounts can save money and there are some available that may help make it more affordable. Many of these discounts will be applied automatically at the time you complete a quote, but some need to be asked for before they will apply. If you’re not getting every credit you qualify for, you are just wasting money.
As is typical with insurance, most discount credits are not given the the whole policy. The majority will only reduce the price of certain insurance coverages like comprehensive or collision. If you do the math and it seems like you would end up receiving a 100% discount, you won’t be that lucky. But any discount should help lower the cost of your policy.
If you would like to view insurers with discount rates, click here.
When buying adequate coverage for your personal vehicles, there is no “perfect” insurance plan. Everyone’s needs are different so your insurance should reflect that For example, these questions could help you determine if your situation would benefit from an agent’s advice.
If you can’t answer these questions but you know they apply to you, you might consider talking to a licensed insurance agent. If you don’t have a local agent, fill out this quick form or you can go here for a list of companies in your area. It is quick, free and can provide invaluable advice.
Consumers can’t get away from ads that promise big savings for switching from companies such as 21st Century, Allstate and State Farm. All the companies advertise the message that drivers will save a bundle if you switch to them.
But how can every company sell you cheaper insurance coverage? Just pay attention to how they say it.
All the different companies have underwriting criteria for the type of customer that will add to their bottom line. An example of a driver they prefer could be over the age of 45, has had continuous coverage, and drives newer vehicles. Any customer that meets those criteria receive the lowest rate quotes and have a good chance to save money with a new company.
Consumers who don’t qualify for these stringent criteria will be charged higher premiums and ends up with the customer not buying. Company advertisements say “people that switch” not “everyone who quotes” will save that much if they switch. This is how companies can truthfully make the claims of big savings. Different companies use different criteria so you really should get price quotes at each policy renewal. It is just not possible to predict which auto insurance company will have the best rates at this point in time.
Learning about specific coverages of a car insurance policy can be of help when determining the best coverages and the correct deductibles and limits. Car insurance terms can be ambiguous and even agents have difficulty translating policy wording. Below you’ll find the normal coverages found on the average car insurance policy.
This pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You need to pay your deductible first then your comprehensive coverage will pay.
Comprehensive coverage pays for claims such as a broken windshield, hitting a bird, rock chips in glass, fire damage and damage from flooding. The maximum amount a car insurance company will pay at claim time is the market value of your vehicle, so if it’s not worth much more than your deductible consider removing comprehensive coverage.
This can cover damages or injuries you inflict on a person or their property. This insurance protects YOU from claims by other people. It does not cover damage sustained by your vehicle in an accident.
Liability coverage has three limits: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You might see policy limits of 50/100/50 that means you have a $50,000 limit per person for injuries, a limit of $100,000 in injury protection per accident, and property damage coverage for $50,000.
Liability can pay for things such as pain and suffering, medical services, repair bills for other people’s vehicles, emergency aid and legal defense fees. How much liability coverage do you need? That is up to you, but consider buying as high a limit as you can afford.
Uninsured or Underinsured Motorist coverage provides protection from other motorists when they either are underinsured or have no liability coverage at all. Covered losses include 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 liability coverage can quickly be exhausted. This is the reason having UM/UIM coverage is very important.
Personal Injury Protection (PIP) and medical payments coverage reimburse you for immediate expenses like ambulance fees, nursing services, EMT expenses and X-ray expenses. They are often used in conjunction with a health insurance policy or if you are not covered by health insurance. They cover not only the driver but also the vehicle occupants and will also cover if you are hit as a while walking down the street. Personal Injury Protection is not available in all states but it provides additional coverages not offered by medical payments coverage
Collision insurance covers damage to your Monterey resulting from colliding with a stationary object or other vehicle. You will need to pay your deductible then your collision coverage will kick in.
Collision coverage pays for claims like rolling your car, hitting a parking meter, backing into a parked car and driving through your garage door. This coverage can be expensive, so consider removing coverage from lower value vehicles. You can also bump up the deductible to save money on collision insurance.
As you go through the steps to switch your coverage, it’s very important that you do not skimp on critical coverages to save a buck or two. There have been many situations where an accident victim reduced liability coverage limits only to regret that it was a big mistake. The aim is to get the best coverage possible at a price you can afford while not skimping on critical coverages.
Budget-friendly auto insurance can be found from both online companies as well as from independent agents, and you need to comparison shop both to have the best selection. Some auto insurance companies may not have rates over the internet and usually these smaller providers sell through independent insurance agencies.
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