Price shopping your auto insurance can be hard for beginners to online price comparisons. There are so many options available that it can quickly become hard work to lower your prices.
It’s a great practice to do price comparisons occasionally since insurance prices change quite often. Just because you had the best deal on CC insurance a couple years back the chances are good that you can find a lower premium rate today. Forget anything you know (or think you know) about auto insurance because I’m going to let you in on the secrets to the tricks you need to know to get good coverage at a lower rate.
When looking for inexpensive insurance quotes, there are a couple ways to compare prices from companies that offer insurance in your state. The best method to compare rates is to use the internet to compare rates. This is quite simple and can be completed in several different ways.
For a list of links to insurance companies in your area, click here.
You can choose any of those ways to find more affodable coverage, but make sure you use identical coverage data with every price quote. If you enter different deductibles it will be very difficult to determine which rate is truly the best. Even a minor difference in limits can result in a big premium difference. And when comparison shopping, quoting more will enable you to find the best rates.
Insurance coverage providers like 21st Century, Allstate and State Farm continually stream ads on TV and radio. All the ads make an identical promise about how much you will save if you switch your policy. How do they all charge you less for car insurance? It’s all in the numbers.
Companies quote their cheapest rates for the type of insured that makes them money. One example of a profitable risk profile should be between the ages of 30 and 50, carries full coverage, and drives newer vehicles. Anyone who meets those qualifications will probably get the lowest premium rates and will most likely save quite a bit of money when switching.
Potential insureds who do not match these stringent criteria will be charged higher premium rates and the prospect going elsewhere. If you listen closely, the ads state “people that switch” but not “everyone who gets a quote” save money. This is how companies can make claims like that. Because of the profiling, you should compare free insurance quotes often. It is just not possible to predict with any certainty which company will fit your personal profile best.
Insurance can cost an arm and a leg, but companies offer discounts that can help lower your rates. Some discounts apply automatically at the time you complete a quote, but less common discounts must be specially asked for before being credited.
It’s important to note that most credits do not apply to the entire cost. Most cut the price of certain insurance coverages like medical payments or collision. So when it seems like all those discounts means the company will pay you, insurance companies wouldn’t stay in business. Any amount of discount will help lower your premiums.
Larger auto insurance companies and a partial list of their discounts can be found below.
If you are trying to find low cost insurance quotes, ask all companies you are considering how many discounts you can get. Some discounts listed above might not be available to policyholders in your area. If you would like to view providers that provide some of the discounts listed above, click here.
When choosing coverage, there really is no perfect coverage plan. Everyone’s needs are different.
For instance, these questions may help highlight whether or not you could use an agent’s help.
If you don’t know the answers to these questions but you think they might apply to your situation, you might consider talking to an agent. To find an agent in your area, fill out this quick form.
Understanding the coverages of a auto insurance policy helps when choosing the right coverages and the correct deductibles and limits. The terms used in a policy can be difficult to understand and coverage can change by endorsement.
Comprehensive auto coverage
This pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things like falling objects, damage from getting keyed, hitting a deer, damage from flooding and a broken windshield. The maximum amount you’ll receive from a claim is the cash value of the vehicle, so if your deductible is as high as the vehicle’s value consider dropping full coverage.
Medical payments and PIP coverage
Medical payments and Personal Injury Protection insurance reimburse you for short-term medical expenses for things like rehabilitation expenses, dental work, EMT expenses and funeral costs. They are used to fill the gap from your health insurance policy or if there is no health insurance coverage. Coverage applies to all vehicle occupants in addition to being hit by a car walking across the street. Personal injury protection coverage is not universally available but can be used in place of medical payments coverage
Auto liability
Liability coverage can cover injuries or damage you cause to a person or their property 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 commonly see policy limits of 25/50/25 that means you have $25,000 bodily injury coverage, $50,000 for the entire accident, and a limit of $25,000 paid for damaged property.
Liability insurance covers claims like emergency aid, bail bonds and repair bills for other people’s vehicles. How much coverage you buy is up to you, but it’s cheap coverage so purchase as much as you can afford.
UM/UIM (Uninsured/Underinsured Motorist) coverage
This coverage protects you and your vehicle’s occupants when other motorists do not carry enough liability coverage. Covered losses include injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Since many drivers only carry the minimum required liability limits, it doesn’t take a major accident to exceed their coverage limits. That’s why carrying high Uninsured/Underinsured Motorist coverage is a good idea.
Collision insurance
This pays for damage to your CC resulting from colliding with an object or car. You first must pay a deductible then your collision coverage will kick in.
Collision insurance covers claims like backing into a parked car, driving through your garage door and colliding with another moving vehicle. Collision coverage makes up a good portion of your premium, so you might think about dropping it from lower value vehicles. You can also choose a higher deductible to bring the cost down.
Consumers change insurance companies for many reasons like lack of trust in their agent, policy cancellation, unfair underwriting practices and even questionable increases in premium. Regardless of your reason, choosing a new insurance company is pretty easy and you might even save some money in the process.
Cheaper insurance coverage is possible on the web and from local insurance agents, so you need to quote insurance with both to have the best chance of lowering rates. There are still a few companies who don’t offer internet price quotes and most of the time these regional carriers only sell coverage through independent agencies.
When shopping online for insurance coverage, do not buy poor coverage just to save money. In too many instances, someone dropped uninsured motorist or liability limits and found out when filing a claim they didn’t have enough coverage. Your strategy should be to find the BEST coverage for the lowest price, but do not sacrifice coverage to save money.
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