Wish you could get out of an underperforming, overpriced auto insurance policy? You’re in good company because you are not the only one feeling buyer’s remorse.
People have many car insurance companies to insure vehicles with, and although it’s a good thing to be able to choose, so many choices can make it hard to find the lowest rates.
Finding affordable coverage is not rocket science. In a nutshell, anyone who buys insurance stands a good chance to be able to find lower rates. Nevertheless, vehicle owners do need to know the way companies price online insurance and use this information to your advantage.
Multiple criteria are part of the calculation when pricing auto insurance. Some factors are common sense like a motor vehicle report, but other criteria are not as apparent such as your marital status or how safe your car is.
The following are some of the items used by insurance companies to determine your rates.
Some companies do not list every discount they offer very well, so the list below gives a summary of some of the more common as well as some of the hidden credits that may apply to you.
One last thing about discounts, most discount credits are not given to the entire cost. Most only reduce individual premiums such as liability and collision coverage. Just because it seems like it’s possible to get free car insurance, it’s just not the way it works. Any amount of discount will lower your policy premium.
The best insurance coverage companies and some of the premium reductions they offer can be read below.
When getting free insurance coverage quotes, it’s a good idea to each company or agent the best way to save money. Discounts might not apply in every state. To find insurance coverage companies who offer discounts, click here to view.
Well-known car insurance companies like Geico, State Farm and Progressive seem to constantly run television and radio advertisements. All the companies try to convey promises about savings if you just switch your coverage to them. How does every car insurance company cost less than your current company? Just pay attention to how they say it.
Different companies have a preferred profile for the driver that earns them a profit. An example of a desirable risk might have to be married and over the age of 30, owns a home, and does not commute to work. Any customer that matches those criteria will get a cheap rate quote as well as save if they switch.
Potential customers who don’t measure up to those criteria may receive a higher rate which usually ends up with the customer buying from someone else. If you pay close attention to the ads, they say “drivers that switch” but not “everyone who gets a quote” save that much money. This is how companies can truthfully make claims like that. This really drives home the point why drivers should compare free insurance coverage quotes often. It is just not possible to predict with any certainty which company will provide the lowest auto insurance rates.
When it comes to choosing coverage, there really is not a “perfect” insurance plan. Coverage needs to be tailored to your specific needs so your insurance needs to address that. For instance, these questions can aid in determining if your insurance needs would benefit from professional advice.
If you can’t answer these questions but a few of them apply then you might want to talk to an agent. To find an agent in your area, simply complete this short form or click here for a list of insurance companies in your area.
Understanding the coverages of your policy can help you determine which coverages you need for your vehicles. Auto insurance terms can be difficult to understand and coverage can change by endorsement. Listed below are typical coverages offered by auto insurance companies.
Comprehensive or Other Than Collision
This coverage pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You first must pay your deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive insurance covers things such as a broken windshield, hail damage, theft, hitting a deer and damage from a tornado or hurricane. The highest amount a auto insurance company will pay at claim time is the ACV or actual cash value, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.
Medical costs insurance
Med pay and PIP coverage reimburse you for expenses for things like dental work, hospital visits and doctor visits. They can be used to cover expenses not covered by your health insurance policy or if you do not have health coverage. Coverage applies to not only the driver but also the vehicle occupants as well as if you are hit as a while walking down the street. Personal Injury Protection is not universally available and gives slightly broader coverage than med pay
UM/UIM Coverage
Uninsured or Underinsured Motorist coverage protects you and your vehicle’s occupants from other motorists when they do not carry enough liability coverage. It can pay for injuries to you and your family as well as damage to your Honda Civic.
Since many drivers have only the minimum liability required by law, it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage is important protection for you and your family.
Liability
Liability coverage will cover damage that occurs to other people or property by causing an accident. This coverage protects you against claims from other people. Liability doesn’t cover your injuries or vehicle damage.
It consists of three limits, per person bodily injury, per accident bodily injury, and a property damage limit. As an example, you may have values of 50/100/50 that means you have $50,000 in coverage for each person’s injuries, $100,000 for the entire accident, and property damage coverage for $50,000.
Liability coverage protects against claims like loss of income, structural damage, repair costs for stationary objects, attorney fees and bail bonds. The amount of liability coverage you purchase is your choice, but consider buying higher limits if possible.
Collision protection
Collision insurance pays for damage to your Civic from colliding with a stationary object or other vehicle. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision can pay for things such as crashing into a ditch, sideswiping another vehicle, rolling your car, hitting a mailbox and colliding with a tree. Paying for collision coverage can be pricey, so consider removing coverage from lower value vehicles. Another option is to increase the deductible to bring the cost down.
When you buy insurance coverage online, you should never skimp on critical coverages to save a buck or two. There are many occasions where drivers have reduced comprehensive coverage or liability limits to discover at claim time that the savings was not a smart move. The aim is to buy the best coverage you can find at the lowest possible cost, but do not sacrifice coverage to save money.
Some insurance providers do not offer the ability to get a quote online and usually these smaller providers prefer to sell through independent insurance agencies. Cheaper car insurance can be purchased both online in addition to local insurance agencies, and you should compare rates from both so you have a total pricing picture.
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