No one rejoices having to buy auto insurance, especially when they know the cost is way too high. Insurance companies such as State Farm, Farmers Insurance, Geico and Allstate constantly blast consumers with catchy ads and it is challenging if not impossible to ignore the flashy ads and find the best price available.
Auto insurance companies don’t always publicize all their discounts very clearly, so we break down some of the best known as well as some of the hidden discounts that may be available.
One thing to note about discounts is that most discounts do not apply to all coverage premiums. Some only apply to individual premiums such as medical payments or collision. Just because you may think having all the discounts means you get insurance for free, you won’t be that lucky.
A list of companies and some of the premium reductions they offer can be read below.
Check with all companies you are considering to apply every possible discount. All car insurance discounts may not apply to policyholders in your area. For a list of providers that have a full spectrum of discounts, click here.
There are a variety of methods to shop for car insurance, and some are more efficient than others. You could spend the better part of a day talking to insurance companies in your area, or you can stay home and use the web to accomplish the same thing much quicker.
Most major companies take part in a program that enables customers to enter their policy data once, and at least one company then returns a price quote for coverage. This saves time by eliminating quotation requests for every car insurance company.
To find out how much you can save on car insurance click here to open in new window.
The only drawback to getting quotes like this is that you can’t choose which insurance companies you want to price. So if you prefer to choose from a list of companies to request quotes from, we have a listing of companies who write car insurance in your area. View list of insurance companies.
Which method you use is up to you, but ensure you are comparing the exact same coverages with each company. If you compare different coverage information you can’t possibly determine the lowest rate for your BMW X5.
When choosing adequate coverage for your vehicles, there isn’t really a cookie cutter policy. Everyone’s situation is a little different so your insurance should reflect that These are some specific questions could help you determine whether or not you may require specific advice.
If you can’t answer these questions but a few of them apply, you may need to chat with a licensed insurance agent. If you don’t have a local agent, fill out this quick form or you can go here for a list of companies in your area. It’s fast, free and you can get the answers you need.
Knowing the specifics of your auto insurance policy helps when choosing the right coverages and the correct deductibles and limits. The coverage terms in a policy can be impossible to understand and coverage can change by endorsement. Below you’ll find the usual coverages found on the average auto insurance policy.
Protection from uninsured/underinsured drivers – This provides protection from other drivers when they either are underinsured or have no liability coverage at all. Covered claims include injuries sustained by your vehicle’s occupants and also any damage incurred to your 2002 BMW X5.
Because many people have only the minimum liability required by law, it only takes a small accident to exceed their coverage. That’s why carrying high Uninsured/Underinsured Motorist coverage is very important. Normally your uninsured/underinsured motorist coverages do not exceed the liability coverage limits.
Liability coverages – This will cover damage or injury you incur to people or other property. It protects YOU from legal claims by others, and does not provide coverage for your injuries or vehicle damage.
Liability coverage has 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 limits of 25/50/25 which means $25,000 in coverage for each person’s 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. Occasionally you may see a combined single limit or CSL which combines the three limits into one amount and claims can be made without the split limit restrictions.
Liability insurance covers things such as repair bills for other people’s vehicles, loss of income, repair costs for stationary objects and court costs. How much liability should you purchase? That is a personal decision, but you should buy as high a limit as you can afford.
Collision coverages – Collision coverage covers damage to your X5 resulting from colliding with an object or car. A deductible applies and then insurance will cover the remainder.
Collision coverage protects against claims like rolling your car, damaging your car on a curb, sideswiping another vehicle and hitting a parking meter. This coverage can be expensive, so you might think about dropping it from older vehicles. Another option is to bump up the deductible to bring the cost down.
Comprehensive (Other than Collision) – This coverage covers damage OTHER than collision with another vehicle or object. You need to pay your deductible first and then insurance will cover the rest of the damage.
Comprehensive insurance covers claims like a broken windshield, damage from getting keyed, a tree branch falling on your vehicle and fire damage. The highest amount your auto insurance company will pay is the market value of your vehicle, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.
Medical expense insurance – Med pay and PIP coverage reimburse you for immediate expenses for things like nursing services, pain medications, EMT expenses and funeral costs. They are often used in conjunction with a health insurance plan or if you are not covered by health insurance. They cover you and your occupants and will also cover any family member struck as a pedestrian. PIP is not universally available but can be used in place of medical payments coverage
As you go through the steps to switch your coverage, do not buy poor coverage just to save money. In many cases, an insured dropped comprehensive coverage or liability limits only to discover later that it was a big error on their part. The aim is to buy a smart amount of coverage at an affordable rate while still protecting your assets.
Some insurance providers may not provide price quotes online and these regional carriers only sell through independent agents. The cheapest 2002 BMW X5 insurance can be bought on the web as well as from independent agents, and you should compare price quotes from both so you have a total pricing picture.
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