Are you overwhelmed by the sheer number of insurance companies in your area? Many other drivers are too. You have such a large number of options that it can really be a big hassle to find lower insurance rates.
If you currently have a car insurance policy, you will be able to reduce your rates substantially using this information. Pricing cheaper auto insurance coverage can be fairly easy. But car owners must learn how the larger insurance companies market on the web and take advantage of how the system works.
Part of the insurance coverage buying process is learning some of the factors that help calculate insurance coverage rates. If you understand what determines base rates, this helps enable you to make changes that may reward you with lower insurance coverage prices. Many different elements are part of the equation when premium rates are determined. Some factors are common sense like an MVR report, although some other factors are more transparent like your vehicle usage or how safe your car is.
Listed below are some of the factors utilized by car insurance companies to help set your rates.
Some companies do not list the complete list of policy discounts very clearly, so here is a list some of the best known and the harder-to-find credits that may apply to you.
One last thing about discounts, most credits do not apply the the whole policy. Some only apply to the cost of specific coverages such as physical damage coverage or medical payments. If you do the math and it seems like it’s possible to get free car insurance, insurance coverage companies aren’t that generous.
If you would like to see a list of companies that offer the discounts shown above, click here.
Big name companies like GEICO, State Farm and Progressive continually stream ads on TV and radio. They all seem to have a common claim that drivers can save some big amount if you get a free car insurance quote and switch to their company. How do they all sell you cheaper insurance coverage? Here is how they do it.
Insurance companies give the best rates for the type of driver that earns them the most money. For example, a desirable risk may be over the age of 35, has had continuous coverage, and does not commute to work. Someone that fits those parameters is entitled to the best price and therefore will save when they switch companies.
Drivers who are not a match for the “perfect” profile will get higher premium rates and this results in the customer buying from a different company. The trick is to say “drivers that switch” but not “all drivers who get quotes” save money. That is how insurance companies can make claims that they all have the best car insurance rates. Because of the profiling, you need to quote coverage with many companies. Because without a comparison, you cannot know which insurance company will fit your personal profile best.
When it comes to choosing the best insurance coverage coverage for your personal vehicles, there isn’t really a perfect coverage plan. Coverage needs to be tailored to your specific needs.
For example, these questions may help highlight whether or not you could use an agent’s help.
If it’s difficult to answer those questions, then you may want to think about talking to an agent. To find an agent in your area, fill out this quick form.
Learning about specific coverages of your policy helps when choosing which coverages you need and the correct deductibles and limits. The terms used in a policy can be difficult to understand and nobody wants to actually read their policy.
Collision – This coverage will pay to fix damage to your Golf resulting from colliding with an object or car. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision coverage protects against things like crashing into a building, hitting a parking meter, crashing into a ditch, colliding with another moving vehicle and colliding with a tree. This coverage can be expensive, so you might think about dropping it from vehicles that are older. It’s also possible to raise the deductible to get cheaper collision coverage.
Comprehensive or Other Than Collision – This coverage will pay to fix damage caused by mother nature, theft, vandalism and other events. You first must pay your deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage pays for things like theft, a broken windshield and damage from a tornado or hurricane. The highest amount 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.
UM/UIM Coverage – Uninsured or Underinsured Motorist coverage provides protection when other motorists either are underinsured or have no liability coverage at all. Covered losses include injuries to you and your family as well as your vehicle’s damage.
Since a lot of drivers only carry the minimum required liability limits, it only takes a small accident to exceed their coverage. So UM/UIM coverage is very important.
Liability insurance – Liability insurance will cover injuries or damage you cause to a person or their property that is your fault. It protects YOU from claims by other people. It does not cover your own vehicle damage or injuries.
Coverage consists of three different limits, bodily injury per person, bodily injury per accident and property damage. You commonly see liability limits of 50/100/50 that translate to $50,000 bodily injury coverage, $100,000 for the entire accident, and a limit of $50,000 paid for damaged property.
Liability can pay for things like repair bills for other people’s vehicles, repair costs for stationary objects, emergency aid, loss of income and attorney fees. The amount of liability coverage you purchase is a decision to put some thought into, but it’s cheap coverage so purchase as much as you can afford.
Medical costs insurance – Coverage for medical payments and/or PIP pay for expenses like nursing services, EMT expenses and pain medications. They can be used to fill the gap from your health insurance plan or if you do not have health coverage. They cover both the driver and occupants and will also cover being hit by a car walking across the street. Personal injury protection coverage is not available in all states but can be used in place of medical payments coverage
We covered many ideas to save on 2010 Volkswagen Golf insurance. The most important thing to understand is the more rate comparisons you have, the higher your chance of finding affordable car insurance. Consumers may even find the best premium rates are with the least-expected company.
As you restructure your insurance plan, it’s very important that you do not sacrifice coverage to reduce premiums. There are too many instances where drivers have reduced collision coverage only to find out they didn’t purchase enough coverage. The ultimate goal is to buy enough coverage at the best price, but do not sacrifice coverage to save money.
People leave their current company for a number of reasons such as policy non-renewal, extreme rates for teen drivers, questionable increases in premium or an unsatisfactory settlement offer. It doesn’t matter what your reason, finding a great new company is pretty easy and you might even save some money in the process.
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