Did you come to the realization that you have an overpriced insurance policy? Trust us when we tell you you are not the only one feeling buyer’s remorse.
Companies like State Farm, Geico and Farmers Insurance all claim big savings, bombarding you with TV and radio ads and it is difficult to see past the geckos and flying pigs and take the time to shop coverage around.
If you have car insurance now, you stand a good chance to be able to lower your premiums substantially using this information. Buying car insurance is not rocket science. But drivers can benefit by having an understanding of how insurance companies price online insurance and take advantage of how the system works.
There are a variety of methods to compare insurance prices but there is one way that is less time-consuming than others. You could waste time talking about coverages with local insurance agents in your area, or you can stay home and use online quotes to get prices fast.
Many popular insurance companies are enrolled in a marketplace where prospective buyers submit their information once, and each participating company returns a rated price based on the submitted data. This eliminates the need for quotation requests for every insurance company.
To find out what other companies charge click here (opens in new window).
The only downside to pricing coverage this way is you can’t choose which providers to receive prices from. So if you prefer to pick from a list of companies to receive pricing from, we have a page of companies who write insurance in your area. Click to view list.
The method you choose is up to you, but make absolute certain that you use the exact same coverages and limits for each price quote. If you use different values for each quote you will not be able to make a fair rate comparison. Quoting even small variations in limits may result in a large different in cost. Just remember that making a lot of price comparisons increases your odds of finding more affordable insurance. Some regional insurers cannot provide prices over the internet, so you should also compare price quotes from the smaller companies as well.
Companies don’t always advertise every available discount in an easy-to-find place, so here is a list a few of the more common and also the lesser-known credits available to lower your premiums when you buy car insurance online.
Policy discounts save money, but some of the credits will not apply to the entire policy premium. Most only reduce the price of certain insurance coverages like liability, collision or medical payments. Even though it may seem like adding up those discounts means a free policy, it doesn’t quite work that way.
Larger car insurance companies and some of their more popular discounts are shown below.
If you need lower rates, check with all the companies what discounts are available to you. Some discounts might not apply in your area.
When buying the best car insurance coverage for your vehicles, there isn’t really a cookie cutter policy. Everyone’s needs are different and your policy should reflect that. These are some specific questions may help highlight whether your personal situation might need an agent’s assistance.
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 insurance agent. To find lower rates from a local agent, complete this form or go to this page to view a list of companies.
Understanding the coverages of car insurance can be of help when determining which coverages you need and proper limits and deductibles. Car insurance terms can be difficult to understand and nobody wants to actually read their policy. Below you’ll find the normal coverages offered by car insurance companies.
Med pay and Personal Injury Protection (PIP)
Medical payments and Personal Injury Protection insurance reimburse you for bills for dental work, nursing services, doctor visits and funeral costs. They can be used in conjunction with a health insurance program or if there is no health insurance coverage. They cover you and your occupants in addition to any family member struck as a pedestrian. PIP coverage is only offered in select states but can be used in place of medical payments coverage
Collision coverage protection
This pays for damage to your Legacy resulting from a collision with a stationary object or other vehicle. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision insurance covers things like rolling your car, backing into a parked car, hitting a parking meter and driving through your garage door. Collision is rather expensive coverage, so analyze the benefit of dropping coverage from vehicles that are 8 years or older. You can also bump up the deductible to bring the cost down.
Uninsured/Underinsured Motorist (UM/UIM)
Uninsured or Underinsured Motorist coverage gives you protection when the “other guys” either are underinsured or have no liability coverage at all. This coverage pays for injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Because many people only purchase the least amount of liability that is required, it doesn’t take a major accident to exceed their coverage limits. So UM/UIM coverage is a good idea.
Auto liability
Liability coverage can cover damage that occurs to other’s property or people by causing an accident. It protects you against claims from other people, and doesn’t cover damage sustained by your vehicle in an accident.
Split limit liability has three limits of coverage: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. As an example, you may have liability limits of 25/50/25 that translate to a $25,000 limit per person for injuries, a total of $50,000 of bodily injury coverage per accident, and a total limit of $25,000 for damage to vehicles and property.
Liability insurance covers claims such as repair bills for other people’s vehicles, pain and suffering and medical expenses. How much liability should you purchase? That is a decision to put some thought into, but buy as much as you can afford.
Comprehensive insurance
Comprehensive insurance coverage will pay to fix damage from a wide range of events other than collision. You first have to pay a deductible and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage pays for things like damage from getting keyed, rock chips in glass, falling objects, damage from flooding and damage from a tornado or hurricane. The maximum amount you’ll receive from a claim is the cash value of the vehicle, so if it’s not worth much more than your deductible consider dropping full coverage.
When getting car insurance quotes online, you should never reduce needed coverages to save money. There are many occasions where someone dropped comprehensive coverage or liability limits to discover at claim time they didn’t purchase enough coverage. Your objective should be to purchase plenty of coverage at a price you can afford, not the least amount of coverage.
Cost effective 1995 Subaru Legacy insurance can be purchased from both online companies and with local insurance agents, and you need to price shop both to have the best rate selection. There are still a few companies who don’t offer online rate quotes and most of the time these smaller companies only sell through independent agencies.