Trying to come up with a payment for high-priced auto insurance can take a big chunk out of your savings and put the squeeze on your family’s finances. Comparing rate quotes is a fast and free way to lower your bills every month.
Multiple insurers compete to insure your vehicles, and it can be difficult to compare rates to get the best rate
If you have insurance now or are just looking to switch companies, you can use this information to shop for the lowest rates while maintaining coverages. Choosing the best insurance company for you is not that difficult. Vehicle owners only need an understanding of the tricks to get comparison rates online.
It’s important that you understand some of the factors that play a part in calculating your auto insurance rates. If you understand what positively or negatively impacts your premiums, this enables you to make decisions that can earn you lower premium levels. Many different elements are used in the calculation when you get your auto insurance bill. Some factors are common sense such as your driving record, but other criteria are not as apparent such as your credit history or how safe your car is.
Shown below are a partial list of the pieces used by your company to calculate your premiums.
Companies don’t always list the complete list of policy discounts in an easy-to-find place, so the below list has both the well known and the harder-to-find credits available to lower your premiums when you buy insurance coverage online.
Discounts lower rates, but most discount credits are not given to your bottom line cost. Most only cut the price of certain insurance coverages like liability and collision coverage. If you do the math and it seems like you could get a free insurance coverage policy, insurance companies wouldn’t stay in business.
A few popular companies and a partial list of their discounts are:
Before buying, ask every company how many discounts you can get. Some discounts listed above may not apply to policies in your area. If you would like to choose from a list of insurance coverage companies with discount insurance coverage rates, click here to view.
Consumers get pounded daily by advertisements for insurance coverage savings by companies like State Farm, Allstate and GEICO. All the companies advertise the message about savings if you move your insurance coverage policy to them.
How is it possible that every company can give you a lower rate? Here is the trick they use.
Insurance providers quote the lowest rates for the right customer that is profitable for them. For example, a driver they prefer could possibly be between 30 and 50, has no claims, and has great credit. A customer getting a price quote who fits those characteristics will most likely get cheap car insurance rates as well as save money with a new company.
Insureds who do not meet these standards may be forced to pay a higher rate which usually ends up with the driver buying from a lower-cost company. The ads state “drivers that switch” but not “all drivers who get quotes” save that much. That is how companies can truthfully lure you into getting a quote.
Because each company has a different risk profile, you need to do a quote comparison often. Because you cannot predict the company that will be your best fit.
When buying the right insurance coverage, there really is no single plan that fits everyone. Each situation is unique so your insurance should reflect that Here are some questions about coverages that can help discover if your situation might need an agent’s assistance.
If you don’t know the answers to these questions, then you may want to think about talking to an insurance agent. To find an agent in your area, take a second and complete this form or go to this page to view a list of companies. It’s fast, free and may give you better protection.
Understanding the coverages of your policy helps when choosing appropriate coverage and the correct deductibles and limits. The terms used in a policy can be impossible to understand and coverage can change by endorsement. Shown next are the usual coverages available from insurance companies.
Collision insurance
Collision insurance covers damage to your Grand Cherokee resulting from colliding with a stationary object or other vehicle. You will need to pay your deductible and then insurance will cover the remainder.
Collision can pay for things like colliding with another moving vehicle, sustaining damage from a pot hole and rolling your car. Paying for collision coverage can be pricey, so you might think about dropping it from older vehicles. Drivers also have the option to bump up the deductible in order to get cheaper collision rates.
Coverage for liability
This coverage provides protection from damage that occurs to other people or property that is your fault. It protects you against other people’s claims, and doesn’t cover damage to your own property or vehicle.
Liability coverage has three limits: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. You commonly see liability limits of 100/300/100 which stand for a $100,000 limit per person for injuries, a limit of $300,000 in injury protection per accident, and a limit of $100,000 paid for damaged property. Some companies may use a combined single limit or CSL which limits claims to one amount without having the split limit caps.
Liability coverage pays for things like court costs, emergency aid and legal defense fees. How much liability should you purchase? That is your choice, but it’s cheap coverage so purchase higher limits if possible.
Uninsured/Underinsured Motorist (UM/UIM)
Your UM/UIM coverage protects you and your vehicle from other drivers when they are uninsured or don’t have enough coverage. Covered claims include hospital bills for your injuries and damage to your Jeep Grand Cherokee.
Because many people only purchase the least amount of liability that is required, it only takes a small accident to exceed their coverage. So UM/UIM coverage is very important. Most of the time these coverages do not exceed the liability coverage limits.
Comprehensive insurance
This coverage pays to fix your vehicle from damage from a wide range of events other than collision. You first must pay your deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things such as a tree branch falling on your vehicle, hail damage and damage from getting keyed. The most you can receive from a comprehensive claim is the ACV or actual cash value, so if the vehicle is not worth much it’s not worth carrying full coverage.
Med pay and Personal Injury Protection (PIP)
Medical payments and Personal Injury Protection insurance reimburse you for immediate expenses like nursing services, prosthetic devices and doctor visits. They are utilized in addition to your health insurance program or if you are not covered by health insurance. They cover not only the driver but also the vehicle occupants as well as if you are hit as a while walking down the street. PIP coverage is not an option in every state and may carry a deductible
Cheaper car insurance is available from both online companies in addition to local insurance agencies, so get free insurance coverage quotes from both of them in order to have the best price selection to choose from. Some companies do not provide online rate quotes and these small insurance companies only sell coverage through local independent agents.
When trying to cut insurance costs, it’s very important that you do not reduce needed coverages to save money. There are a lot of situations where someone sacrificed liability coverage limits only to find out that it was a big error on their part. The proper strategy is to buy enough coverage at the best cost while still protecting your assets.
For more information, take a look at the resources below: