Buying budget-priced insurance coverage can seem to be somewhat intimidating for vehicle owners who are new to buying insurance over the internet. With more and more online companies, how can anyone have the ability to compare each option to find the best pricing?
An important part of buying insurance is that you know some of the elements that go into determining your premiums. If you understand what influences your rates, this helps enable you to make changes that may result in cheaper rates.
The factors shown below are some of the most rate-impacting factors used by companies to determine premiums.
Car insurance can be pricey, but you may be missing some discounts that could drop your premiums quite a bit. Most are applied when you complete an application, but a few need to be specially asked for before being credited. If you aren’t receiving every discount possible, you’re just leaving money on the table.
You should keep in mind that some of the credits will not apply to all coverage premiums. Most cut specific coverage prices like comp or med pay. Even though it may seem like adding up those discounts means a free policy, insurance companies wouldn’t stay in business.
A few of the larger companies and some of their more popular discounts are detailed below.
Before buying, ask every insurance company the best way to save money. Discounts might not apply everywhere. To see a list of car insurance companies that have a full spectrum of discounts, click here.
When it comes to buying the right insurance coverage for your vehicles, there really is no best way to insure your cars. Every situation is different.
These are some specific questions may help highlight if 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. To find lower rates from a local agent, take a second and complete this form.
Having a good grasp of car insurance can help you determine appropriate coverage and proper limits and deductibles. Car insurance terms can be ambiguous and even agents have difficulty translating policy wording.
Auto liability – Liability coverage will cover injuries or damage you cause to people or other property. This insurance protects YOU from claims by other people. Liability doesn’t cover damage to your own property or vehicle.
Liability coverage has three limits: per person bodily injury, per accident bodily injury, and a property damage limit. You might see values 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 property damage coverage for $25,000.
Liability coverage protects against claims such as repair bills for other people’s vehicles, legal defense fees, emergency aid and bail bonds. The amount of liability coverage you purchase is a personal decision, but buy as much as you can afford.
Collision coverage – This covers damage to your Lancer Evolution resulting from a collision with another car or object. You will need to pay your deductible and then insurance will cover the remainder.
Collision can pay for things like sustaining damage from a pot hole, hitting a mailbox, sideswiping another vehicle, crashing into a building and driving through your garage door. Collision is rather expensive coverage, so consider dropping it from vehicles that are 8 years or older. It’s also possible to raise the deductible in order to get cheaper collision rates.
UM/UIM Coverage – This coverage protects you and your vehicle’s occupants from other drivers when they do not carry enough liability coverage. It can pay for injuries sustained by your vehicle’s occupants and damage to your Mitsubishi Lancer Evolution.
Since many drivers only carry the minimum required liability limits, it doesn’t take a major accident to exceed their coverage limits. That’s why carrying high Uninsured/Underinsured Motorist coverage is very important.
Comprehensive or Other Than Collision – Comprehensive insurance will pay to fix damage OTHER than collision with another vehicle or object. You first have to pay a deductible and then insurance will cover the rest of the damage.
Comprehensive can pay for claims such as a broken windshield, damage from a tornado or hurricane and hitting a deer. The most your car insurance company will pay is the actual cash value, so if it’s not worth much more than your deductible consider dropping full coverage.
Medical costs insurance – Coverage for medical payments and/or PIP provide coverage for immediate expenses for hospital visits, surgery and doctor visits. They can be used to cover expenses not covered by your health insurance plan or if you lack health insurance entirely. They cover not only the driver but also the vehicle occupants and will also cover being hit by a car walking across the street. PIP is not an option in every state and gives slightly broader coverage than med pay
When you buy car insurance online, don’t be tempted to reduce needed coverages to save money. In too many instances, consumers will sacrifice uninsured motorist or liability limits only to discover later that they should have had better coverage. Your goal is to get the best coverage possible at the best cost.
Drivers switch companies for a variety of reasons including denial of a claim, policy non-renewal, lack of trust in their agent and questionable increases in premium. Regardless of your reason for switching companies, choosing a new insurance company is pretty simple and you could end up saving a buck or two.
Lower-priced insurance coverage can be found on the web and from local insurance agents, and you need to comparison shop both so you have a total pricing picture. Some insurance coverage companies may not have the ability to get a quote online and many times these smaller companies only sell coverage through independent insurance agents.