Did you fall for a flashy sales pitch and buy an expensive auto insurance policy? Trust us, there are many consumers feeling the pinch from expensive auto insurance.
Due to the fact that there are so many online and local companies to choose from, it’s nearly impossible to locate the cheapest company.
It’s a good habit to take a look at other company’s rates before your policy renews because auto insurance prices tend to go up over time. Despite the fact that you may have had the best deal on Safari coverage a couple years back you will most likely find a better rate today. Ignore everything you know about auto insurance because you’re about to learn the right way to save money, get proper deductibles and limits, all at the lowest rate.
The purpose of this article is to introduce you to how to effectively get price quotes and some money-saving tips. If you currently have a car insurance policy, you will most likely be able to cut costs considerably using this information. But consumers can benefit from knowing the way insurance companies sell online because it can help you find the best coverage.
There are multiple methods to compare auto insurance prices but there is one way that is less labor-intensive and much quicker. You can waste a few hours (or days) driving to local insurance agents in your area, or you can utilize online quotes to get pricing more quickly.
The majority of car insurance companies belong to an insurance system where prospective buyers send in one quote, and every company provides a quote. This prevents consumers from doing quote forms for every auto insurance company.
To access this free quoting program, click here (opens in new window).
The one disadvantage to getting quotes like this is you cannot specify the providers to receive prices from. So if you want to select individual companies to compare, we put together a list of the cheapest auto insurance companies in your area. Click to view list.
You can choose any of those ways to find more affodable coverage, but do your best to enter nearly identical coverages and limits on every quote. If your comparisons have mixed coverages it will be next to impossible to make a fair rate comparison. Quoting even small variations in limits could throw off the whole comparison. And when price shopping your coverage, getting more free quotes will improve the odds of getting the best price.
When it comes to choosing adequate coverage for your vehicles, there really is no “perfect” insurance plan. Everyone’s needs are different and your policy should reflect that. These are some specific questions could help you determine if you may require specific advice.
If you don’t know the answers to these questions then you might want to talk to an agent. If you want to speak to an agent in your area, fill out this quick form or click here for a list of auto insurance companies in your area.
Understanding the coverages of your policy helps when choosing the best coverages at the best deductibles and correct limits. Policy terminology can be confusing and reading a policy is terribly boring. Shown next are the usual coverages available from insurance companies.
Collision coverage – This pays to fix your vehicle from damage resulting from a collision with another car or object. A deductible applies then the remaining damage will be paid by your insurance company.
Collision can pay for things like hitting a mailbox, sideswiping another vehicle, crashing into a building and colliding with another moving vehicle. Paying for collision coverage can be pricey, so consider dropping it from lower value vehicles. Drivers also have the option to bump up the deductible in order to get cheaper collision rates.
Uninsured or underinsured coverage – Uninsured or Underinsured Motorist coverage gives you protection from other drivers when they either have no liability insurance or not enough. It can pay for injuries sustained by your vehicle’s occupants and damage to your GMC Safari.
Because many people only carry the minimum required liability limits, their limits can quickly be used up. For this reason, having high UM/UIM coverages is important protection for you and your family. Normally these coverages are identical to your policy’s liability coverage.
Comprehensive protection – This coverage pays for damage OTHER than collision with another vehicle or object. You need to pay your deductible first and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive insurance covers things like vandalism, a broken windshield, hitting a bird and hitting a deer. The highest amount a insurance company will pay at claim time is the ACV or actual cash value, so if the vehicle is not worth much consider dropping full coverage.
Medical expense coverage – Personal Injury Protection (PIP) and medical payments coverage provide coverage for short-term medical expenses for things like surgery, pain medications and X-ray expenses. They are used in conjunction with a health insurance plan or if you are not covered by health insurance. Medical payments and PIP cover both the driver and occupants and will also cover if you are hit as a while walking down the street. PIP coverage is not universally available and may carry a deductible
Liability car insurance – Liability coverage protects you from injuries or damage you cause to a person or their property. It protects YOU from legal claims by others. Liability doesn’t cover damage sustained by your vehicle in an accident.
It consists of three limits, 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 which stand for $25,000 bodily injury coverage, a per accident bodily injury limit of $50,000, and a limit of $25,000 paid for damaged property. Occasionally you may see one limit called combined single limit (CSL) that pays claims from the same limit rather than limiting it on a per person basis.
Liability insurance covers claims such as legal defense fees, repair bills for other people’s vehicles and medical expenses. How much liability coverage do you need? That is a personal decision, but consider buying higher limits if possible.