Having to pay for overpriced car insurance can overdraw your personal savings and make it impossible to make ends meet. Shopping your coverage around is a fast and free way to lower your monthly bill.
There is such a variety of insurers to buy insurance from, and though it is a good thing to have multiple companies, having more insurance companies makes it harder to locate the cheapest rates.
Finding the best rates is easy if you know what you’re doing. Basically, anyone who is shopping for insurance will be able to lower their premiums. Nevertheless, consumers need to learn how big insurance companies determine prices and take advantage of how the system works.
Some providers do not list every discount very well, so the following is a list of some of the more common and also the lesser-known credits that may apply to you.
A quick disclaimer, most discounts do not apply to your bottom line cost. Most only cut the price of certain insurance coverages like collision or personal injury protection. So even though they make it sound like you can get free auto insurance, it just doesn’t work that way. Any amount of discount will help lower your overall bill.
To locate providers who offer online insurance coverage quotes, click this link.
Shopping for lower insurance coverage rates can be a lot of work if you don’t know the easiest way. You could waste time talking to agents in your area, or you could save time and use the internet to get rates in a matter of minutes.
All the larger companies enroll in a system that enables customers to send in one quote, and at least one company provides a quote based on the submitted data. This eliminates the need for form submissions to each individual insurance coverage company.
To participate in this free quote system, click here to open in new window.
The only drawback to using this type of system is you can’t choose which companies to get quotes from. So if you prefer to pick from a list of companies to request quotes from, we put together a list of low cost insurance coverage companies in your area. Click to view list.
It’s up to you how you get prices quotes, just be sure to compare identical coverage data for each quote you get. If you have different deductibles you can’t possibly make a fair rate comparison. Having just a slight variation in insurance coverages could mean much higher rates. Just remember that getting more free quotes will enable you to find the best offered rates. Not every company allows you to get rate quotes online, so you also need to get price estimates from the smaller companies as well.
When it comes to buying adequate coverage, there is no “perfect” insurance plan. Every insured’s situation is different so this has to be addressed. For instance, these questions may help you determine if your situation might need an agent’s assistance.
If you can’t answer these questions but you think they might apply to your situation then you might want to talk to an insurance agent. If you want to speak to an agent in your area, complete this form or go to this page to view a list of companies.
Allstate, GEICO and Progressive regularly use ads on television and other media. All the companies advertise the message that drivers can save some big amount after switching to their company. How does every auto insurance company have lower policy pricing? It’s all in the wording.
Many companies quote the lowest rates for the type of driver that will add to their bottom line. For example, a profitable customer could be a married female, has never had a claim, and has a high credit rating. A propective insured who fits those characteristics receives the best car insurance rates and will save when switching.
Drivers who don’t meet the requirements will probably have to pay a more expensive rate which translates to business going elsewhere. If you listen closely, the ads state “people that switch” but not “everyone who gets a quote” can get the lowest rates when switching. That’s the way companies can truthfully advertise the way they do. This really drives home the point why it’s extremely important to get insurance quotes from several different companies. Because you never know which insurance companies will give you lower rates than your current company.
Knowing the specifics of your insurance policy can be of help when determining appropriate coverage for your vehicles. Insurance terms can be difficult to understand and nobody wants to actually read their policy. Shown next are the normal coverages found on the average insurance policy.
Collision insurance
Collision insurance will pay to fix damage to your Versa resulting from colliding with an object or car. You first must pay a deductible then your collision coverage will kick in.
Collision coverage protects against claims such as backing into a parked car, crashing into a ditch, hitting a parking meter and sustaining damage from a pot hole. Collision coverage makes up a good portion of your premium, so analyze the benefit of dropping coverage from older vehicles. Drivers also have the option to increase the deductible to bring the cost down.
Coverage for medical expenses
Medical payments and Personal Injury Protection insurance provide coverage for expenses for surgery, EMT expenses and ambulance fees. They can be utilized in addition to your health insurance plan or if there is no health insurance coverage. They cover all vehicle occupants in addition to if you are hit as a while walking down the street. PIP is not available in all states and may carry a deductible
Comprehensive insurance
Comprehensive insurance pays for damage that is not covered by collision coverage. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things like hitting a bird, hitting a deer and falling objects. The maximum payout a insurance company will pay at claim time is the ACV or actual cash value, so if it’s not worth much more than your deductible it’s not worth carrying full coverage.
Liability coverages
Liability insurance provides protection from damage that occurs to other’s property or people that is your fault. Coverage consists of three different limits, per person bodily injury, per accident bodily injury, and a property damage limit. As an example, you may have liability limits of 25/50/25 which stand for $25,000 in coverage for each person’s injuries, a per accident bodily injury limit of $50,000, and $25,000 of coverage for damaged propery.
Liability can pay for claims such as loss of income, pain and suffering and court costs. How much coverage you buy is your choice, but buy as much as you can afford.
Coverage for uninsured or underinsured drivers
Your UM/UIM coverage provides protection when other motorists either have no liability insurance or not enough. Covered losses include hospital bills for your injuries as well as your vehicle’s damage.
Because many people only carry the minimum required liability limits, their limits can quickly be used up. So UM/UIM coverage is a good idea.
While you’re price shopping online, you should never buy less coverage just to save a little money. Too many times, someone dropped uninsured motorist or liability limits and found out when filing a claim they didn’t purchase enough coverage. The proper strategy is to get the best coverage possible for the lowest cost and still be able to protect your assets.
More affordable auto insurance can be found from both online companies and with local insurance agents, and you should compare rates from both to have the best chance of lowering rates. Some insurance providers may not have price quotes online and usually these regional insurance providers work with local independent agents.
For more information, take a look at the resources below: