No sane person likes having to buy insurance, especially when they could lower their rates if they shopped around. There are many car insurance companies to purchase coverage from, and even though it’s nice to have multiple companies, it makes it harder to compare rates and find the lowest cost insurance.
Car insurance is not cheap, but you might find some hidden discounts to help offset the cost. A few discounts will be applied when you quote, but less common discounts must be inquired about prior to receiving the credit.
It’s important to understand that some of the credits will not apply to the entire policy premium. Most only reduce the cost of specific coverages such as comprehensive or collision. Despite the fact that it seems like all the discounts add up to a free policy, insurance companies wouldn’t stay in business.
Large insurance companies and their possible discounts are:
When comparing rates, check with each company or agent which discounts can lower your rates. A few discounts may not apply to policyholders in every state.
When it comes to buying proper insurance coverage, there is no one size fits all plan. Your needs are not the same as everyone else’s so your insurance should reflect that For instance, these questions can aid in determining if your situation might need professional guidance.
If you can’t answer these questions but you know they apply to you, you might consider talking to a licensed agent. If you don’t have a local agent, fill out this quick form or you can also visit this page to select a carrier It’s fast, doesn’t cost anything and you can get the answers you need.
Consumers can’t get away from all the ads for cheaper insurance by Progressive, Allstate and Geico. They all seem to make an identical promise about how much you will save after switching your insurance coverage to their company.
How do they all say the same thing? It’s all in the wording.
Different companies require specific criteria for the type of customer that earns them the highest profit. For example, a profitable customer might have to be over the age of 35, has no tickets, and drives less than 10,000 miles a year. Someone who fits that profile may get the lowest premium rates and most likely will save a lot of money.
Potential customers who cannot meet the ideal profile may be required to pay higher rates with the end result being the customer not buying. If you listen closely, the ads state “people who switch” but not “everyone who gets a quote” will save that much if they switch. That’s the way companies can truthfully advertise the way they do. This really drives home the point why you absolutely need to get price quotes at each policy renewal. It’s just too difficult to predict the company that will have the best car insurance rates.
Understanding the coverages of your insurance policy helps when choosing appropriate coverage and the correct deductibles and limits. The coverage terms in a policy can be ambiguous and coverage can change by endorsement. These are the normal coverages found on most insurance policies.
Comprehensive insurance – This coverage pays to fix your vehicle from damage OTHER than collision with another vehicle or object. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive insurance covers claims like damage from a tornado or hurricane, fire damage and a broken windshield. The maximum payout your insurance company will pay is the market value of your vehicle, so if the vehicle’s value is low it’s probably time to drop comprehensive insurance.
Liability auto insurance – Liability insurance can cover damages or injuries you inflict on a person or their property by causing an accident. This coverage protects you against other people’s claims, and doesn’t cover your injuries or vehicle damage.
It consists of three limits, bodily injury per person, bodily injury per accident and property damage. As an example, you may have policy limits of 25/50/25 which means 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 coverage pays for claims such as bail bonds, loss of income, repair bills for other people’s vehicles, structural damage and emergency aid. The amount of liability coverage you purchase is a decision to put some thought into, but consider buying as high a limit as you can afford.
Collision coverage – Collision insurance pays for damage to your Lumina resulting from colliding with another vehicle or an object, but not an animal. You have to pay a deductible then the remaining damage will be paid by your insurance company.
Collision coverage pays for things such as colliding with a tree, rolling your car and hitting a mailbox. Collision coverage makes up a good portion of your premium, so consider removing coverage from older vehicles. You can also choose a higher deductible to save money on collision insurance.
Coverage for medical expenses – Coverage for medical payments and/or PIP kick in for immediate expenses for things like chiropractic care, X-ray expenses and ambulance fees. They are often used to fill the gap from your health insurance plan or if you lack health insurance entirely. Medical payments and PIP cover not only the driver but also the vehicle occupants in addition to any family member struck as a pedestrian. Personal injury protection coverage is not an option in every state and may carry a deductible
Coverage for uninsured or underinsured drivers – Your UM/UIM coverage gives you protection from other motorists when they either have no liability insurance or not enough. Covered claims include hospital bills for your injuries and also any damage incurred to your 2001 Chevy Lumina.
Since many drivers only purchase the least amount of liability that is required, it only takes a small accident to exceed their coverage. That’s why carrying high Uninsured/Underinsured Motorist coverage should not be overlooked.
You just read a lot of information how to reduce 2001 Chevy Lumina insurance premium rates online. It’s most important to understand that the more rate comparisons you have, the better your chances of lowering your prices. Consumers may even find the lowest premium rates are with the smaller companies. Smaller companies may cover specific market segments cheaper than their larger competitors like Progressive and Geico.
When trying to cut insurance costs, you should never buy less coverage just to save a little money. There are too many instances where an accident victim reduced collision coverage and discovered at claim time that their decision to reduce coverage ended up costing them more. The goal is to buy a smart amount of coverage at an affordable rate, but do not sacrifice coverage to save money.
Additional auto insurance information is available at these links: