Did a good deal turn into overpriced insurance coverage? You’re preaching to the choir because there are a lot of people just like you who feel imprisoned by their insurance coverage policy.
Popular companies such as Allstate and Progressive all claim big savings, bombarding you with ad campaigns and it can be hard to separate fact from fiction and do the work needed to find the best deal.
The cost of insuring your cars can be expensive, but you might be missing out on some discounts that can drop the cost substantially. Many discounts should be triggered at the time you complete a quote, but some need to be inquired about before you get the savings.
A quick disclaimer, most of the big mark downs will not be given to the entire policy premium. Some only apply to the cost of specific coverages such as comp or med pay. So when it seems like you can get free auto insurance, companies wouldn’t make money that way. Any amount of discount will positively reduce the cost of coverage.
To find providers that offer the discounts shown above, click this link.
Insurance coverage companies such as Allstate, Geico and Progressive seem to constantly run ads on television and other media. All the ads have a common claim that you can save if you change your insurance coverage policy to them. Is it even possible that every company can charge less that you’re paying now? Here is the trick they use.
Insurance coverage companies can use profiling for the type of customer that will not have excessive claims. For instance, a desirable risk should be over the age of 40, has never had a policy lapse, and does not commute to work. Any person who matches those parameters is entitled to the best price and will cut their rates if they switch.
Potential insureds who cannot meet these criteria will be charged more expensive rates and this results in the driver buying from a lower-cost company. The ad wording is “people that switch” not “all people who quote” save money. That’s the way insurance companies can confidently make it sound like they have such great prices. Because of this risk profiling, drivers must compare as many free insurance coverage quotes as you can. Because without a comparison, you cannot know with any certainty which company will fit you best based on your risk profile.
When it comes to choosing the right insurance coverage, there really is no “best” method to buy coverage. Everyone’s situation is a little different so your insurance needs to address that. Here are some questions about coverages that might point out whether or not you might need professional guidance.
If it’s difficult to answer those questions but you think they might apply to your situation then you might want to talk to an agent. To find lower rates from a local agent, simply complete this short form or click here for a list of insurance coverage companies in your area.
Having a good grasp of your policy can help you determine the best coverages and the correct deductibles and limits. Policy terminology can be impossible to understand and reading a policy is terribly boring. Shown next are typical coverages found on the average insurance policy.
Collision insurance pays to fix your vehicle from damage resulting 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 can pay for claims like crashing into a ditch, rolling your car, colliding with a tree and driving through your garage door. Collision coverage makes up a good portion of your premium, so analyze the benefit of dropping coverage from vehicles that are 8 years or older. You can also increase the deductible to bring the cost down.
Liability coverage provides protection from injuries or damage you cause to a person or their property that is your fault. Liability coverage has three limits: per person bodily injury, per accident bodily injury, and a property damage limit. Your policy might show liability limits of 25/50/25 that translate to $25,000 in coverage for each person’s injuries, a total of $50,000 of bodily injury coverage per accident, and a limit of $25,000 paid for damaged property.
Liability coverage pays for things such as legal defense fees, repair bills for other people’s vehicles and pain and suffering. How much liability coverage do you need? That is a personal decision, but you should buy as large an amount as possible.
This coverage protects you and your vehicle from other motorists when they are uninsured or don’t have enough coverage. Covered claims include injuries sustained by your vehicle’s occupants and damage to your 2003 GMC Safari Cargo.
Due to the fact that many drivers carry very low liability coverage limits, it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage should not be overlooked.
Coverage for medical payments and/or PIP provide coverage for bills such as doctor visits, ambulance fees, surgery, nursing services and dental work. The coverages can be used in conjunction with a health insurance plan or if you do not have health coverage. It covers you and your occupants and will also cover if you are hit as a while walking down the street. PIP is not an option in every state and may carry a deductible
Comprehensive insurance coverage covers damage that is not covered by collision coverage. You first must pay your deductible and then insurance will cover the rest of the damage.
Comprehensive coverage pays for claims like theft, vandalism, damage from getting keyed and rock chips in glass. The maximum payout your insurance company will pay is the actual cash value, so if your deductible is as high as the vehicle’s value it’s probably time to drop comprehensive insurance.
Some insurance companies may not have online price quotes and these small, regional companies prefer to sell through independent insurance agents. More affordable insurance coverage can be sourced both online as well as from independent agents, so you should be comparing quotes from both in order to have the best chance of saving money.
While you’re price shopping online, don’t be tempted to buy lower coverage limits just to save a few bucks. There are many occasions where an insured cut physical damage coverage only to regret they didn’t have enough coverage. Your aim should be to find the BEST coverage for the lowest price, but do not sacrifice coverage to save money.
Additional detailed information can be read in the articles below: