No one anticipates paying for car insurance, especially when they are aware that their premiums are too high. Vehicle owners have many insurance companies to pick from, and although it’s nice to have a selection, lots of choices makes it harder to find the best rates for your vehicles.
It’s a good idea to compare rates every six months because car insurance prices fluctuate regularly. If you had the lowest rate on Colorado coverage a couple years back other companies may now be cheaper. Forget all the misinformation about car insurance because you’re going to learn one of the easiest ways to lower your annual insurance bill.
It’s important that you understand the rating factors that aid in calculating your insurance rates. If you have a feel for what impacts premium levels, this enables informed choices that can earn you lower rates. Many different elements are used when quoting car insurance. Some are pretty understandable like a motor vehicle report, although some other factors are more obscure like your continuous coverage or your financial responsibility.
The factors shown below are a partial list of the pieces that factor into premiums.
Insurance coverage is neither fun to buy or cheap, but you may find discounts to cut the cost considerably. Larger premium reductions will be automatically applied at the time of purchase, but a few need to be asked about in order for you to get them. If you do not double check each discount possible, you may be paying too high a price.
As a footnote on discounts, some of the credits will not apply to the entire policy premium. Most cut the cost of specific coverages such as liability, collision or medical payments. Despite the fact that it seems like it’s possible to get free car insurance, it doesn’t quite work that way.
A few of the larger companies and a summarized list of policyholder discounts are:
If you need affordable auto insurance quotes, ask each company what discounts are available to you. Some credits may not apply in your area.
When buying proper insurance coverage for your vehicles, there is no “perfect” insurance plan. Every insured’s situation is different so your insurance needs to address that. These are some specific questions can help discover whether your personal situation will benefit from professional help.
If you’re not sure about those questions but a few of them apply, you might consider talking to a licensed agent. If you don’t have a local agent, complete this form or you can also visit this page to select a carrier It’s fast, doesn’t cost anything and can help protect your family.
Knowing the specifics of a car insurance policy can be of help when determining appropriate coverage and proper limits and deductibles. Policy terminology can be confusing and even agents have difficulty translating policy wording. Shown next are the normal coverages found on most car insurance policies.
UM/UIM Coverage – This coverage gives you protection when the “other guys” either have no liability insurance or not enough. This coverage pays for injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Since many drivers only purchase the least amount of liability that is required, their liability coverage can quickly be exhausted. For this reason, having high UM/UIM coverages is very important. Frequently the UM/UIM limits do not exceed the liability coverage limits.
Medical costs insurance – Coverage for medical payments and/or PIP reimburse you for expenses for hospital visits, funeral costs, prosthetic devices, EMT expenses and X-ray expenses. They are often used in conjunction with a health insurance program 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 gives slightly broader coverage than med pay
Collision – Collision insurance pays to fix your vehicle from damage resulting from colliding with an object or car. A deductible applies and then insurance will cover the remainder.
Collision coverage pays for things such as colliding with another moving vehicle, crashing into a building and rolling your car. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from lower value vehicles. Drivers also have the option to increase the deductible to bring the cost down.
Auto liability insurance – Liability insurance can cover damage or injury you incur to other people or property by causing an accident. This insurance protects YOU against other people’s claims. Liability doesn’t cover damage sustained by your vehicle in an accident.
Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You might see values of 100/300/100 which means $100,000 in coverage for each person’s injuries, a limit of $300,000 in injury protection per accident, and a total limit of $100,000 for damage to vehicles and property. Occasionally you may see a combined single limit or CSL which combines the three limits into one amount without having the split limit caps.
Liability coverage protects against things like structural damage, emergency aid, repair costs for stationary objects, court costs and repair bills for other people’s vehicles. How much liability should you purchase? That is your choice, but buy as high a limit as you can afford.
Comprehensive or Other Than Collision – Comprehensive insurance will pay to fix damage that is not covered by collision coverage. A deductible will apply then your comprehensive coverage will pay.
Comprehensive insurance covers things like damage from getting keyed, damage from a tornado or hurricane, damage from flooding and hitting a bird. The maximum payout you’ll receive from a claim is the actual cash value, so if your deductible is as high as the vehicle’s value consider removing comprehensive coverage.
Some insurance coverage companies may not have rate quotes online and these smaller providers work with independent agents. Cheap 2010 Chevy Colorado insurance can be sourced on the web and from local insurance agents, so you should be comparing quotes from both to have the best selection.
While you’re price shopping online, it’s a bad idea to reduce needed coverages to save money. In many instances, drivers have reduced full coverage only to find out that the few dollars in savings costed them thousands. The ultimate goal is to get the best coverage possible at the best price, but do not skimp to save money.
More detailed insurance coverage information is located in these articles: