Pretty sure you bought high-priced auto insurance? Don’t feel bad because you’re not alone. Multiple car insurance companies compete for your insurance dollar, so it’s not easy to compare every insurance company and uncover the absolute lowest cost out there.
Some providers don’t always list all available discounts in an easy-to-find place, so we researched both well-publicized and the more hidden credits that you can use to lower your rates.
Discounts reduce rates, but you should keep in mind that many deductions do not apply to the overall cost of the policy. Most only apply to the cost of specific coverages such as liability and collision coverage. So despite the fact that it appears it’s possible to get free car insurance, nobody gets a free ride.
If you would like to see a list of insurance companies with the best insurance discounts, click here.
It’s important that you understand some of the elements that go into determining the rates you pay for car insurance. If you know what impacts premium levels, this enables you to make decisions that can help you get much lower annual insurance costs. Multiple criteria are part of the calculation when you quote your car insurance policy. Most are fairly basic such as your driving record, but others are more obscure such as your credit history or your vehicle rating.
When choosing proper insurance coverage for your personal vehicles, there isn’t really a one size fits all plan. Your needs are not the same as everyone else’s and your policy should reflect that. For example, these questions might help in determining whether or not you could use an agent’s help.
If you don’t know the answers to these questions but one or more may apply to you then you might want to talk to a licensed insurance agent. To find an agent in your area, simply complete this short form or you can go here for a list of companies in your area. It only takes a few minutes and you can get the answers you need.
Consumers can’t escape the ads that claim the cheapest rates from companies such as Allstate, Geico and Progressive. They all say the same thing that you can save if you move your insurance coverage to their company.
How is it possible that every company can cost less than your current company? It’s all in the words they use.
Different companies have strict underwriting profiles for the type of driver that earns them a profit. For instance, this type of risk profile might be described as between the ages of 40 and 55, has no prior claims, and does not commute to work. Any new insured who fits those characteristics will most likely get cheap car insurance rates and will most likely save quite a bit of money when switching.
Drivers who do not fit this stringent profile must pay a higher premium and ends up with the customer not buying. The wording the ads use say “drivers that switch” not “everyone that quotes” save that kind of money. This is how insurance companies can confidently claim big savings. Because of this risk profiling, drivers should compare price quotes frequently. Because without a comparison, you cannot know which insurance companies will have the best premium rates.
Learning about specific coverages of your auto insurance policy can help you determine the right coverages at the best deductibles and correct limits. The coverage terms in a policy can be confusing and coverage can change by endorsement. Below you’ll find typical coverages available from auto insurance companies.
Liability auto insurance
Liability coverage will cover damage that occurs to people or other property. This coverage protects you from claims by other people. Liability doesn’t cover damage sustained by your vehicle in an accident.
Split limit liability has three limits of coverage: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. As an example, you may have limits of 25/50/25 which stand for $25,000 in coverage for each person’s injuries, $50,000 for the entire accident, and a total limit of $25,000 for damage to vehicles and property.
Liability can pay for claims like repair costs for stationary objects, structural damage and loss of income. The amount of liability coverage you purchase is a decision to put some thought into, but consider buying as much as you can afford.
Collision protection
This coverage pays to fix your vehicle from damage resulting from a collision with an object or car. You have to pay a deductible then the remaining damage will be paid by your insurance company.
Collision coverage protects against claims like backing into a parked car, damaging your car on a curb, driving through your garage door and colliding with a tree. This coverage can be expensive, so consider removing coverage from vehicles that are 8 years or older. It’s also possible to increase the deductible in order to get cheaper collision rates.
Comprehensive auto coverage
This coverage covers damage OTHER than collision with another vehicle or object. You first have to pay a deductible then your comprehensive coverage will pay.
Comprehensive coverage protects against claims such as hitting a deer, hail damage, falling objects, damage from getting keyed and damage from a tornado or hurricane. The most your auto insurance company will pay is the actual cash value, so if the vehicle is not worth much it’s not worth carrying full coverage.
Medical payments and PIP coverage
Med pay and PIP coverage kick in for bills like nursing services, pain medications and X-ray expenses. They are used in conjunction with a health insurance policy or if there is no health insurance coverage. It covers all vehicle occupants and also covers if you are hit as a while walking down the street. Personal Injury Protection is only offered in select states but can be used in place of medical payments coverage
UM/UIM (Uninsured/Underinsured Motorist) coverage
This protects you and your vehicle’s occupants when other motorists either have no liability insurance or not enough. It can pay for injuries to you and your family as well as damage to your Acura RSX.
Due to the fact that many drivers only purchase the least amount of liability that is required, their limits can quickly be used up. For this reason, having high UM/UIM coverages should not be overlooked.
When you buy auto insurance online, you should never skimp on critical coverages to save a buck or two. There are many occasions where someone sacrificed uninsured motorist or liability limits only to discover later that their decision to reduce coverage ended up costing them more. The aim is to buy enough coverage at the best possible price but still have enough coverage for asset protection.
Some insurance companies do not offer the ability to get quotes online and usually these regional insurance providers provide coverage only through independent agents. Affordable 2003 Acura RSX insurance is available on the web in addition to local insurance agencies, so you should compare both to have the best chance of lowering rates.
Much more information about insurance coverage is located on the following sites: