Are you regretting the purchase of high-priced auto insurance? Believe me when I say there are many drivers thinking the same thing. Drivers have many insurers to purchase coverage from, and though it is a good thing to have multiple companies, so many choices can make it hard to compare company pricing.
The fastest way that we advise to compare insurance rates from multiple companies is to know most of the bigger providers will pay a fee to give rate comparisons. The only thing you need to do is provide a small amount of information like how many miles driven, whether the vehicles are used for commuting, how much coverage you want, and your education level. The data is sent automatically to many of the top insurers and you get price estimates instantly to find the best rate.
Consumers get pounded daily by advertisements that claim the cheapest car insurance rates from companies such as Geico, State Farm and Progressive. All the companies make the same claim about how much you will save if you switch your policy.
How can each company offer drivers better rates? Just pay attention to how they say it.
Different companies provide the lowest rates for the type of driver that earns them the highest profit. For example, a preferred risk might be described as over the age of 40, has never had a policy lapse, and insures a new vehicle. A driver that fits those parameters will get the preferred prices and will also cut their rates substantially.
Potential insureds who do not fit the ideal profile may be required to pay higher prices which results in business not being written. The trick is to say “drivers that switch” not “everyone that quotes” save that much money. That’s why companies can advertise the savings.
Because of these techniques, you really need to quote coverage with many companies. Because you cannot predict with any certainty which company will have the lowest rates.
Some insurers don’t always advertise the entire discount list in an easy-to-find place, so the next list breaks down some of the more common and also the more inconspicuous credits available to bring down your rates.
Please keep in mind that most of the big mark downs will not be given to your bottom line cost. A few only apply to the price of certain insurance coverages like comp or med pay. Just because it seems like it’s possible to get free car insurance, company stockholders wouldn’t be very happy. But any discount will help lower your overall bill.
A few of the larger companies and the discounts they provide are:
If you need cheaper insurance quotes, ask every insurance company which discounts you may be entitled to. Depending on the company, some discounts might not be offered in your area.
When it comes to buying adequate coverage, there is no single plan that fits everyone. Your needs are not the same as everyone else’s and your policy should reflect that. Here are some questions about coverages that may help highlight whether you will benefit from professional help.
If you’re not sure about those questions but a few of them apply then you might want to talk to an agent. To find an agent in your area, complete this form or click here for a list of insurance companies in your area. It’s fast, doesn’t cost anything and you can get the answers you need.
Learning about specific coverages of insurance can help you determine the best coverages for your vehicles. The terms used in a policy can be difficult to understand and coverage can change by endorsement. Below you’ll find the normal coverages found on the average insurance policy.
Uninsured and underinsured coverage
This coverage protects you and your vehicle’s occupants from other drivers when they either have no liability insurance or not enough. Covered claims include injuries sustained by your vehicle’s occupants as well as damage to your Mazda Tribute.
Due to the fact that many drivers carry very low liability coverage limits, it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is important protection for you and your family. Most of the time these limits are identical to your policy’s liability coverage.
Liability
Liability insurance protects you from injuries or damage you cause to other’s property or people that is your fault. It protects YOU from claims by other people. It does not 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. You commonly see liability limits of 25/50/25 that translate to a limit of $25,000 per injured person, a limit of $50,000 in injury protection per accident, and $25,000 of coverage for damaged propery. Some companies may use one number which is a combined single limit which combines the three limits into one amount without having the split limit caps.
Liability coverage pays for things like repair bills for other people’s vehicles, loss of income, legal defense fees, attorney fees and funeral expenses. How much liability coverage do you need? That is up to you, but it’s cheap coverage so purchase as much as you can afford.
Collision coverage protection
This coverage pays for damage to your Tribute resulting from a collision with an object or car. You will need to pay your deductible then your collision coverage will kick in.
Collision insurance covers claims such as backing into a parked car, driving through your garage door, hitting a parking meter and scraping a guard rail. Collision coverage makes up a good portion of your premium, so you might think about dropping it from older vehicles. You can also increase the deductible in order to get cheaper collision rates.
Coverage for medical payments
Coverage for medical payments and/or PIP reimburse you for short-term medical expenses for things like ambulance fees, funeral costs, nursing services and pain medications. They are often used in conjunction with a health insurance policy or if you do not have health coverage. It covers not only the driver but also the vehicle occupants and also covers any family member struck as a pedestrian. PIP coverage is only offered in select states and gives slightly broader coverage than med pay
Comprehensive coverages
Comprehensive insurance pays for damage caused by mother nature, theft, vandalism and other events. You need to pay your deductible first and then insurance will cover the rest of the damage.
Comprehensive can pay for claims such as fire damage, hail damage, hitting a deer and theft. The highest amount you’ll receive from a claim is the actual cash value, so if the vehicle’s value is low it’s not worth carrying full coverage.
Cheaper auto insurance can be purchased from both online companies and with local insurance agents, so get free insurance quotes from both of them so you have a total pricing picture. A few companies may not have online price quotes and many times these small insurance companies sell through independent insurance agencies.
When searching for low cost insurance quotes, never reduce needed coverages to save money. In many instances, an insured dropped uninsured motorist or liability limits only to regret at claim time that their decision to reduce coverage ended up costing them more. Your focus should be to purchase plenty of coverage at the best possible price, but do not sacrifice coverage to save money.
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