Buying the cheapest car insurance online might appear difficult for drivers new to buying their car insurance on the internet. Since there are so many online companies available, how are we expected to even start to compare all the different companies and get the best available rates?
Most major insurance companies such as 21st Century, Allstate and State Farm provide prices for coverage on their websites. Comparing rates online can be done by anyone because it’s just a matter of typing in your coverage information into the form. When complete, the company’s rating system pulls reports for credit and driving violations and quotes a price based on these factors.
Online quotes simplifies rate comparisons, but the work required to visit several different sites and fill out multiple forms can be a bit repetitive. But it’s necessary to have as many quotes as possible if you want to get the lowest auto insurance rates.
The preferred way to lower your rates uses one form that analyzes rates from many companies. This type of form saves time, reduces the work, and makes quoting online a lot less work. After your information is entered, it gets priced and you are able to buy any or none of the quotes returned.
If one or more price quotes are lower than your current rates, you can click and sign and buy the policy. It takes just a few minutes to complete and you will find out if you’re overpaying now.
In order to find out what other companies charge, simply click here to open in new window and input your coverage information. If you have your current policy handy, we recommend you copy the insurance coverages exactly as they are listed on your policy. Doing this guarantees you will have a rate comparison based on identical coverages.
Buying car insurance is not cheap, but there’s a good chance there are discounts that you may not know about. Larger premium reductions will be automatically applied at the time you complete a quote, but a few need to be asked for before you will receive the discount.
One last thing about discounts, most of the big mark downs will not be given to the overall cost of the policy. The majority will only reduce the price of certain insurance coverages like comprehensive or collision. Even though the math looks like you would end up receiving a 100% discount, nobody gets a free ride.
Auto insurance companies who may offer some of the discounts shown above include:
It’s a good idea to ask every prospective company the best way to save money. Depending on the company, some discounts might not be offered in your area. To choose insurance companies who offer discounts, follow this link.
Smart consumers have a good feel for some of the things that play a part in calculating the rates you pay for car insurance. When you understand what positively or negatively impacts your premiums, this enables informed choices that could result in lower premium levels.
When buying the right insurance coverage, there isn’t really a one size fits all plan. Every insured’s situation is different.
For instance, these questions can help discover if your situation might need professional guidance.
If you don’t know the answers to these questions but one or more may apply to you, you might consider talking to an insurance agent. To find an agent in your area, take a second and complete this form.
Companies like 21st Century, Allstate and State Farm regularly use ads in print and on television. All the companies advertise the message that drivers will save a bundle if you just switch your coverage. How do they all offer drivers better rates? This is the way they can do it.
Companies have strict underwriting profiles for the type of driver that makes them money. A good example of a profitable insured might be described as a mature driver, has no tickets, and has great credit. A customer who fits that profile will most likely get cheap rates and most likely will save a lot if they switch.
People who are not a match for this ideal profile will be quoted a higher rate which leads to the prospect going elsewhere. If you listen to the ad wording, they say “customers who switch” not “everyone who quotes” save that much money. That is how companies can advertise the savings.
This really drives home the point why you absolutely need to compare many company’s premium rates. Because without a comparison, you cannot know which insurance companies will have the lowest car insurance rates for your situation.
Having a good grasp of your policy helps when choosing the right coverages and proper limits and deductibles. The terms used in a policy can be ambiguous and even agents have difficulty translating policy wording.
Comprehensive coverage
This pays to fix your vehicle from damage that is not covered by collision coverage. You first must pay your deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage protects against claims like vandalism, theft, hitting a deer and damage from flooding. 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 it’s not worth carrying full coverage.
Medical payments coverage and PIP
Personal Injury Protection (PIP) and medical payments coverage kick in for expenses like surgery, pain medications, rehabilitation expenses and EMT expenses. The coverages can be used in conjunction with a health insurance program or if you do not have health coverage. Medical payments and PIP cover all vehicle occupants in addition to being hit by a car walking across the street. PIP is not universally available but can be used in place of medical payments coverage
Auto liability insurance
Liability insurance can cover injuries or damage you cause to a person or their property that is your fault. It protects you from legal claims by others. It does not cover damage to your own property or vehicle.
It consists of 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 liability limits of 50/100/50 which means $50,000 bodily injury coverage, a per accident bodily injury limit of $100,000, and a limit of $50,000 paid for damaged property. Another option is a combined single limit or CSL that pays claims from the same limit without having the split limit caps.
Liability coverage protects against claims like attorney fees, court costs, funeral expenses, pain and suffering and bail bonds. The amount of liability coverage you purchase is a decision to put some thought into, but you should buy as high a limit as you can afford.
Uninsured/Underinsured Motorist coverage
Uninsured or Underinsured Motorist coverage provides protection when the “other guys” either have no liability insurance or not enough. This coverage pays for injuries sustained by your vehicle’s occupants and damage to your 2013 FIAT 500.
Since many drivers carry very low liability coverage limits, it doesn’t take a major accident to exceed their coverage limits. That’s why carrying high Uninsured/Underinsured Motorist coverage is very important. Usually these coverages are identical to your policy’s liability coverage.
Collision insurance
Collision coverage pays to fix your vehicle from damage caused by collision with an object or car. You have to pay a deductible and the rest of the damage will be paid by collision coverage.
Collision can pay for claims like crashing into a building, hitting a parking meter and backing into a parked car. Collision coverage makes up a good portion of your premium, so consider removing coverage from older vehicles. Another option is to choose a higher deductible in order to get cheaper collision rates.
As you quote car insurance, never reduce coverage to reduce premium. Too many times, drivers have reduced liability limits or collision coverage only to find out that the savings was not a smart move. The aim is to purchase a proper amount of coverage at the best cost while still protecting your assets.
Lower-priced car insurance can be sourced from both online companies and from local insurance agents, so you need to shop car insurance with both so you have a total pricing picture. Some insurance companies don’t offer the ability to get quotes online and most of the time these smaller companies only sell coverage through independent insurance agents.
Consumers switch companies for many reasons like an unsatisfactory settlement offer, questionable increases in premium, delays in responding to claim requests or even policy cancellation. Regardless of your reason, finding a new company is not as difficult as it may seem.
Even more information is available at these sites: