Locating cheap auto insurance online is difficult for drivers who are new to comparing rates on the internet. Because there are so many online companies available, how can drivers even start to compare them all to find the lowest price available?
Buying car insurance is not rocket science. Just about everyone who carries insurance should be able to find lower rates. But car owners must comprehend how big insurance companies sell insurance online and apply this information to your search.
Part of the insurance coverage buying process is learning the different types of things that are used to determine your premiums. When you understand what determines base rates, this enables informed choices that will entitle you to lower rates. Multiple criteria are taken into consideration when you get your auto insurance bill. Some are pretty understandable such as your driving history, although others are less apparent such as whether you are married or your financial responsibility.
Shown below are some of the most rate-impacting factors insurance coverage companies consider when setting your rates.
Performing a rate comparison can take hours if you don’t understand the best way to get rate quotes. You can waste a lot of time talking to insurance companies in your area, or you can stay home and use online quotes to maximize your effort.
Most car insurance companies enroll in a system that allows shoppers to enter their policy data once, and at least one company returns a competitive quote determined by their information. This prevents consumers from doing quote requests to each individual insurance coverage company. To compare rates now click to open in new window.
One minor caviat to pricing coverage this way is you can’t choose which insurance companies you want pricing from. If you wish to select specific providers for rate comparison, we put together a list of low cost insurance coverage companies in your area. Click here for list of insurance companies.
It’s up to you which method you use, but compare apples-to-apples coverage limits and deductibles on every price quote you get. If you have unequal deductibles or liability limits it will be very difficult to determine the best price for your Mazda 323. Even a minor difference in insurance coverages or limits could throw off the whole comparison. Keep in mind that quoting more will improve the odds of getting a lower rate than you’re paying now. Not every company does rate quotes online, so you should also compare price quotes from those companies as well.
Big name companies like Geico, State Farm and Progressive seem to constantly run ads in print and on television. All the ads state the claim of big savings if you move your insurance coverage to their company. It sounds good, but how can they all give you a lower rate? It’s all in the wording.
Insurance companies have underwriting criteria for the type of driver that earns them the most money. One example of a preferred risk might have to be between the ages of 30 and 45, has a clean driving record, and the vehicle is rated for pleasure use. Any new insured who matches those parameters may get the lowest premium rates and as a result will probably save money with a new company.
Insureds who cannot meet this ideal profile will get more expensive rates which results in the customer not buying. If you listen to the ad wording, they say “customers who switch” not “all people who quote” save that kind of money. That’s the way insurance companies can advertise the way they do. This really illustrates why you need to get as many free auto insurance quotes as possible. It’s just too difficult to predict with any certainty which company will have the lowest rate quotes.
Insurance is not an enjoyable expense, but there are discounts available that may help make it more affordable. Larger premium reductions will be automatically applied at quote time, but some need to be specifically requested prior to getting the savings.
One thing to note about discounts is that some of the credits will not apply to all coverage premiums. Most only reduce the price of certain insurance coverages like physical damage coverage or medical payments. Just because you may think you would end up receiving a 100% discount, you won’t be that lucky.
Insurance companies that may offer policyholders these discounts include:
When quoting, ask every prospective company which discounts can lower your rates. Some discounts might not be offered on policies in your area.
When choosing coverage, there is no “best” method to buy coverage. Each situation is unique.
For instance, these questions may help highlight whether or not you could use an agent’s help.
If you can’t answer these questions then you might want to talk to a licensed insurance agent. To find an agent in your area, fill out this quick form.
Having a good grasp of your auto insurance policy helps when choosing appropriate coverage at the best deductibles and correct limits. The coverage terms in a policy can be ambiguous and reading a policy is terribly boring.
Liability coverage
Liability insurance can cover damages or injuries you inflict on people or other property in an accident. This insurance protects YOU from claims by other people. It does not cover damage to your own property or vehicle.
Liability coverage has three limits: bodily injury per person, bodily injury per accident and property damage. Your policy might show liability limits of 100/300/100 that means you have a $100,000 limit per person for injuries, a limit of $300,000 in injury protection per accident, and a total limit of $100,000 for damage to vehicles and property.
Liability coverage pays for things like pain and suffering, funeral expenses, loss of income, attorney fees and emergency aid. How much liability should you purchase? That is a decision to put some thought into, but it’s cheap coverage so purchase as much as you can afford.
Comprehensive protection
Comprehensive insurance will pay to fix damage caused by mother nature, theft, vandalism and other events. A deductible will apply then your comprehensive coverage will pay.
Comprehensive coverage pays for claims like fire damage, hitting a deer and damage from a tornado or hurricane. The highest amount you can receive from a comprehensive 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.
Uninsured or underinsured coverage
This coverage provides protection when other motorists either have no liability insurance or not enough. Covered losses include hospital bills for your injuries and also any damage incurred to your Mazda 323.
Since a lot of drivers carry very low liability coverage limits, it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage is a good idea.
Medical expense coverage
Personal Injury Protection (PIP) and medical payments coverage provide coverage for short-term medical expenses such as surgery, nursing services, prosthetic devices, EMT expenses and doctor visits. They are used to cover expenses not covered by your health insurance program or if there is no health insurance coverage. Coverage applies to not only the driver but also the vehicle occupants and will also cover if you are hit as a while walking down the street. Personal Injury Protection is not universally available and may carry a deductible
Collision insurance
This coverage pays for damage to your 323 resulting from a collision with another car or object. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision coverage protects against claims like crashing into a building, sideswiping another vehicle, driving through your garage door and rolling your car. This coverage can be expensive, so consider removing coverage from vehicles that are 8 years or older. Drivers also have the option to bump up the deductible in order to get cheaper collision rates.
As you restructure your insurance plan, you should never buy lower coverage limits just to save a few bucks. Too many times, someone sacrificed full coverage only to discover later that their decision to reduce coverage ended up costing them more. Your goal should be to purchase plenty of coverage at the best cost, not the least amount of coverage.
Consumers who switch companies do it for a variety of reasons including being labeled a high risk driver, policy cancellation, questionable increases in premium and even delays in responding to claim requests. Whatever your reason, choosing a new insurance company is not as hard as you think.
You just learned some good ideas how you can lower your 1994 Mazda 323 insurance prices. The key thing to remember is the more quotes you get, the better your comparison will be. You may be surprised to find that the lowest prices are with some of the lesser-known companies.
Much more information about insurance coverage can be found at the links below