No one in their right mind anticipates paying for car insurance, particularly when the cost is too high. Due to the increasing number of options when it comes to car insurance, it can be challenging to choose a lower cost insurance company.
Many things are used in the calculation when quoting car insurance. Some factors are common sense such as traffic violations, although some other factors are less obvious such as your marital status or how financially stable you are.A large part of saving on insurance is knowing some of the things that are used to determine insurance rates. If you know what determines base rates, this empowers consumers to make smart changes that could help you find big savings.
The itemized list below are a few of the things companies use to determine your rate level.
Some companies don’t necessarily list the complete list of policy discounts very well, so the list below gives a summary of a few of the more well known in addition to some of the lesser obvious discounts that you may qualify for.
A little disclaimer on discounts, some credits don’t apply to all coverage premiums. Some only reduce specific coverage prices like liability, collision or medical payments. So when the math indicates you could get a free insurance policy, that’s just not realistic.
Large insurance companies and their possible discounts are shown below.
It’s a good idea to ask every prospective company which discounts you may be entitled to. Depending on the company, some discounts may not apply in your area.
Consumers get pounded daily by advertisements for the lowest price car insurance by Allstate, Geico and Progressive. They all seem to make the point that people will save after switching your coverage.
How does each company have lower policy pricing? Just pay attention to how they say it.
Companies quote their cheapest rates for the right customer that is profitable for them. An example of a profitable insured should be a married male, has other policies, and drives newer vehicles. Any new insured that hits that “sweet spot” will get very good auto insurance rates and will most likely cut their rates if they switch.
People who don’t qualify for these criteria will be quoted a higher rate which usually ends up with the driver buying from a lower-cost company. If you listen closely, the ads state “drivers that switch” but not “all drivers who get quotes” save that much. That is how insurance companies can confidently state the savings.
Different companies use different criteria so you really should get price quotes at each policy renewal. It is impossible to guess which insurance companies will fit you best based on your risk profile.
When it comes to buying proper insurance coverage for your vehicles, there is no single plan that fits everyone. Everyone’s needs are different so this has to be addressed. These are some specific questions could help you determine if your insurance needs will benefit from professional help.
If it’s difficult to answer those questions but one or more may apply to you, then you may want to think about talking to a licensed agent. To find an agent in your area, fill out this quick form or you can also visit this page to select a carrier It’s fast, doesn’t cost anything and may give you better protection.
Having a good grasp of insurance can help you determine which coverages you need and proper limits and deductibles. Policy terminology can be impossible to understand and reading a policy is terribly boring. These are the usual coverages found on most insurance policies.
This provides 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.
Since a lot of drivers only carry the minimum required liability limits, it doesn’t take a major accident to exceed their coverage limits. So UM/UIM coverage is important protection for you and your family. Most of the time these limits are set the same as your liablity limits.
Comprehensive insurance coverage pays for damage from a wide range of events other than collision. You first must pay your deductible and then insurance will cover the rest of the damage.
Comprehensive can pay for things such as a broken windshield, damage from getting keyed, vandalism, hail damage and hitting a bird. The maximum payout you’ll receive from a claim 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.
This coverage will cover damages or injuries you inflict on other people or property in an accident. This insurance protects YOU from claims by other people, and does not provide coverage for damage to your own property or vehicle.
Split limit liability has three limits of coverage: per person bodily injury, per accident bodily injury, and a property damage limit. As an example, you may have limits of 100/300/100 which means $100,000 in coverage for each person’s injuries, a limit of $300,000 in injury protection per accident, and property damage coverage for $100,000. Alternatively, you may have a combined single limit or CSL which limits claims to one amount with no separate limits for injury or property damage.
Liability insurance covers things like repair costs for stationary objects, emergency aid, repair bills for other people’s vehicles, funeral expenses and medical expenses. How much coverage you buy is a personal decision, but it’s cheap coverage so purchase as high a limit as you can afford.
Collision coverage covers damage to your Suburban from colliding with another car or object. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision insurance covers claims such as backing into a parked car, colliding with a tree, crashing into a building and hitting a parking meter. Paying for collision coverage can be pricey, so consider dropping it from lower value vehicles. Another option is to bump up the deductible to bring the cost down.
Medical payments and Personal Injury Protection insurance provide coverage for short-term medical expenses for things like surgery, nursing services, dental work and chiropractic care. They are often utilized in addition to your health insurance policy or if you are not covered by health insurance. Coverage applies to all vehicle occupants and also covers being hit by a car walking across the street. Personal Injury Protection is not available in all states and may carry a deductible
Some insurance companies may not offer price quotes online and most of the time these smaller providers prefer to sell through independent insurance agents. More affordable insurance is available online as well as from insurance agents, and you should compare price quotes from both to have the best chance of lowering rates.
We’ve covered many ideas to lower your 2002 Chevy Suburban insurance car insurance rates. It’s most important to understand that the more companies you get premium rates for, the higher the chance of saving money. You may even find the lowest priced insurance comes from a lesser-known regional company. These companies may often insure only within specific states and give getter rates than their larger competitors like State Farm or Progressive.