Looking for lower car insurance rates for your Chevrolet Silverado 2500HD? Did a good deal turn into an overpriced car insurance policy? You’re preaching to the choir because there are many consumers feeling the pinch from expensive car insurance.
Companies like State Farm, GEICO and Farmers Insurance increase brand awareness with ads and it can be hard to ignore the promise of big savings and find the best price available.
You should make it a habit to shop coverage around as often as possible because prices are rarely the same from one policy term to another. Despite the fact that you may have had the lowest price on SilveradoHD coverage at your last renewal you may be paying too much now. You can find a lot of wrong information about car insurance online but I’m going to show you some guaranteed methods to put money back in your pocket.
An important part of buying insurance is that you know the factors that aid in calculating the rates you pay for car insurance. If you have some idea of what impacts premium levels, this enables informed choices that will entitle you to much lower annual insurance costs. Lots of factors are taken into consideration when quoting car insurance. Some are obvious such as your driving record, although some other factors are not as apparent like where you live or your commute time.
The following are some of the major factors used by companies to determine your prices.
Some companies don’t necessarily list every possible discount very clearly, so we researched both the well known and also the more inconspicuous discounts that you can inquire about if you buy car insurance online.
As a sidenote, most discounts do not apply to your bottom line cost. A few only apply to the cost of specific coverages such as comprehensive or collision. Just because you may think having all the discounts means you get insurance for free, you won’t be that lucky.
Companies and some of the premium reductions they offer are detailed below.
If you want the cheapest car insurance quotes, ask every prospective company which discounts can lower your rates. Savings might not be offered on policies in your state. To choose insurers who offer discounts, click here to view.
Companies like State Farm, GEICO and Progressive seem to constantly run television and radio advertisements. They all seem to say the same thing about saving some big amount if you get a free car insurance quote and switch your coverage to them. How does every company offer you a better deal? This is the trick they use.
Different companies require specific criteria for the type of customer that will add to their bottom line. An example of a driver they prefer might be over age 30, has had continuous coverage, and drives less than 10,000 miles a year. A customer getting a price quote that hits that “sweet spot” may get the lowest auto insurance rates and will also save a lot if they switch.
Drivers who do not meet those criteria may be forced to pay a higher premium and this results in the driver buying from a lower-cost company. If you listen to the ad wording, they say “people that switch” not “everyone who quotes” save the amount stated. This is how insurance companies can confidently make those statements.
This illustrates why it’s extremely important to do a rate comparison at every renewal. It is impossible to guess with any certainty which company will provide you with the cheapest rates.
When it comes to choosing adequate coverage for your personal vehicles, there isn’t really a perfect coverage plan. Coverage needs to be tailored to your specific needs so your insurance should reflect that For example, these questions can help discover whether you would benefit from professional advice.
If you don’t know the answers to these questions but a few of them apply, you may need to chat with 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
Having a good grasp of your policy aids in choosing which coverages you need at the best deductibles and correct limits. Auto insurance terms can be confusing and even agents have difficulty translating policy wording. Below you’ll find typical coverage types found on the average auto insurance policy.
Comprehensive or Other Than Collision – Comprehensive insurance pays for damage caused by mother nature, theft, vandalism and other events. A deductible will apply and then insurance will cover the rest of the damage.
Comprehensive coverage protects against things such as theft, a broken windshield, hail damage and rock chips in glass. The highest amount a auto insurance company will pay at claim time is the cash value of the vehicle, so if the vehicle is not worth much it’s not worth carrying full coverage.
UM/UIM Coverage – This coverage gives you protection from other drivers when they are uninsured or don’t have enough coverage. Covered claims include hospital bills for your injuries as well as your vehicle’s damage.
Since a lot of drivers have only the minimum liability required by law, it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is a good idea. Frequently these coverages are identical to your policy’s liability coverage.
Medical costs insurance – Medical payments and Personal Injury Protection insurance kick in for expenses for pain medications, chiropractic care, rehabilitation expenses and EMT expenses. They are often used to cover expenses not covered by your health insurance program or if you lack health insurance entirely. Medical payments and PIP cover both the driver and occupants as well as any family member struck as a pedestrian. Personal Injury Protection is not available in all states but can be used in place of medical payments coverage
Auto liability insurance – Liability insurance will cover damages or injuries you inflict on a person or their property that is your fault. This insurance protects YOU against claims from other people, and doesn’t cover damage to your own property or vehicle.
Liability coverage has three limits: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. As an example, you may have limits of 100/300/100 which means a limit of $100,000 per injured person, a per accident bodily injury limit of $300,000, and $100,000 of coverage for damaged propery. Some companies may use one limit called combined single limit (CSL) which provides one coverage limit without having the split limit caps.
Liability insurance covers claims like loss of income, attorney fees, court costs, structural damage and medical expenses. How much coverage you buy is up to you, but you should buy higher limits if possible.
Collision – This coverage pays to fix your vehicle from damage from colliding with an object or car. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision can pay for claims like hitting a parking meter, driving through your garage door and scraping a guard rail. Collision coverage makes up a good portion of your premium, so consider dropping it from lower value vehicles. Another option is to bump up the deductible in order to get cheaper collision rates.
While you’re price shopping online, never reduce needed coverages to save money. There are too many instances where an accident victim reduced uninsured motorist or liability limits only to discover later they didn’t purchase enough coverage. The ultimate goal is to buy a smart amount of coverage at a price you can afford while not skimping on critical coverages.
More affordable insurance is possible from both online companies and from local insurance agents, so get free car insurance quotes from both of them to get a complete price analysis. Some insurance companies do not offer price quotes online and most of the time these smaller companies only sell through local independent agencies.
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