Compare 2006 BMW 5 Series Insurance Rates

Buying discount insurance may be overwhelming for comparison shopping on the internet. With so many insurance agents and insurers to choose from, how are we expected to effectively compare every company to locate the cheapest available price?

Six factors that impact insurance premiums

When buying auto insurance it’s important to understand some of the factors that come into play when calculating the level of your policy premiums. If you know what influences your rates, this enables you to make decisions that may result in lower rates.

  • Costs may be higher where you live – Choosing to live in less populated areas of the country has definite advantages when it comes to auto insurance. Residents of big cities have to deal with much more traffic and higher rates of accident claims. Less people living in that area means a lower chance of having an accident and a lower car theft rate.
  • See if your company offers a multi-policy discount – Most larger auto insurance companies allow better rates to policyholders who have multiple policies with them such as combining an auto and homeowners policy. The discount can be ten or even up to twenty percent in some cases. Even if you’re getting this discount drivers will still want to shop around to make sure you are getting the best deal. You may still save money by buying insurance from more than one company.
  • Extra policy coverages can cost a lot – There are a lot of extra bells and whistles you can purchase on your 5 Series policy. Coverages for coverage for rental cars, accident forgiveness, and motor club memberships are examples of these. You may think they are a good idea when discussing your needs, but your money might be better spent on other coverage so consider taking them off your policy.
  • Drive lots and pay more – The higher the mileage driven in a year the higher your rate. Many insurance companies apply a rate based upon how the vehicle is primarily used. Cars that have low annual miles qualify for better rates compared to those used for work or business. Make sure your auto insurance policy is rated on how each vehicle is driven. Incorrect rating for your 5 Series can cost quite a bit.
  • Five star NHTSA crash test rating saves money – Safe vehicles tend to be cheaper to insure. Highly rated vehicles reduce occupant injuries and any reduction in injury severity translates directly to fewer claims which can result in lower premiums. If your BMW has at least four stars on Safercar.gov or an “acceptable” rating on iihs.org you may qualify for a discount.
  • Better premiums for continuous auto insurance coverage – Driving with no insurance is a big no-no and any future policy may cost more because you let your insurance lapse for non-payment. Not only will you pay higher rates, the inability to provide proof of insurance could earn you a fine, jail time, or a revoked license. Then you may be required to provide proof of insurance in the form of an SR-22 filing with your state motor vehicle department.

Earn discounts to get lower-cost insurance coverage rates

The price of auto insurance can be rather high, but you may find discounts that can dramatically reduce your bill. Many of these discounts will be applied automatically at the time of quoting, but a few must be requested specifically before being credited.

  • Bundled Policy Discount – When you have multiple policies with one insurance company you may earn at least 10 to 15 percent or more.
  • Good Driver Discount – Safe drivers may receive a discount up to 45% for 5 Series coverage as compared to drivers with claims.
  • Multi-line Discount – Some insurance coverage companies give lower rates if you buy auto and life insurance together.
  • Smart Student Discounts – Being a good student can earn a discount of 20% or more. Many companies even apply the discount to college students up until you turn 25.
  • Switch and Save Discount – A few insurance companies offer discounts for switching to them early. It can save you around 10%.
  • Driver Training Discounts – Participating in a course in driver safety may get you a small discount and easily recoup the cost of the course.
  • Discount for Passive Restraints – Factory air bags or motorized seat belts can qualify for discounts of 20% or more.
  • Homeowners Discount – Owning your own home or condo can get you a discount due to the fact that maintaining a home demonstrates responsibility.

Consumers should know that most credits do not apply to your bottom line cost. The majority will only reduce the cost of specific coverages such as comprehensive or collision. Despite the fact that it seems like all those discounts means the company will pay you, companies don’t profit that way. But any discount should help lower the cost of coverage.

Companies and a selection of discounts include:

  • Progressive has discounts for good student, online quote discount, homeowner, online signing, continuous coverage, multi-policy, and multi-vehicle.
  • AAA offers discounts including multi-car, good student, good driver, education and occupation, and anti-theft.
  • Farmers Insurance has savings for homeowner, business and professional, good student, multi-car, mature driver, and bundle discounts.
  • Geico offers discounts for air bags, driver training, anti-lock brakes, seat belt use, membership and employees, emergency military deployment, and military active duty.
  • Esurance may have discounts that include renters, online quote, DriveSense, safety device, multi-policy, and Switch & Save.
  • SAFECO includes discounts for teen safety rewards, teen safe driver, anti-lock brakes, drive less, safe driver, and multi-car.
  • State Farm policyholders can earn discounts including defensive driving training, good driver, passive restraint, multiple autos, student away at school, and Drive Safe & Save.

It’s a good idea to ask each company or agent which discounts you qualify for. Some discounts listed above may not be offered in your area. If you would like to view providers with discount insurance coverage rates, click here.

Tailor your car insurance coverage to you

When buying coverage for your personal vehicles, there is no single plan that fits everyone. Each situation is unique.

For example, these questions might help in determining whether or not you would benefit from professional advice.

  • Are there companies who specialize in insuring high-risk drivers?
  • Am I covered when pulling a rental trailer?
  • How can I find cheaper teen driver insurance?
  • Am I covered when renting a car or should I buy coverage from the car rental agency?
  • Does coverage extend to Mexico or Canada?
  • Am I missing any policy discounts?

If you’re not sure about those questions, you may need to chat with a licensed agent. To find lower rates from a local agent, take a second and complete this form.

Auto insurance coverage breakdown

Knowing the specifics of a auto insurance policy can help you determine the right coverages and the correct deductibles and limits. The coverage terms in a policy can be impossible to understand and even agents have difficulty translating policy wording.

Auto collision coverage

Collision insurance pays to fix your vehicle from damage resulting from colliding with a stationary object or other vehicle. A deductible applies and the rest of the damage will be paid by collision coverage.

Collision coverage pays for claims such as hitting a parking meter, driving through your garage door, colliding with another moving vehicle and crashing into a ditch. Collision coverage makes up a good portion of your premium, so consider removing coverage from lower value vehicles. It’s also possible to increase the deductible to save money on collision insurance.

Comprehensive coverage

This coverage pays for damage that is not covered by collision coverage. You first have to pay a deductible then your comprehensive coverage will pay.

Comprehensive coverage protects against things like damage from a tornado or hurricane, a tree branch falling on your vehicle and fire damage. The maximum payout you’ll receive from a claim is the ACV or actual cash value, so if the vehicle’s value is low consider dropping full coverage.

Liability insurance

This provides protection from damage that occurs to people or other property. This coverage protects you against claims from other people, and does not provide coverage for your injuries or vehicle damage.

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 policy limits of 100/300/100 that translate to a limit of $100,000 per injured person, a total of $300,000 of bodily injury coverage per accident, and $100,000 of coverage for damaged propery. Occasionally you may see one number which is a combined single limit which limits claims to one amount and claims can be made without the split limit restrictions.

Liability can pay for things such as loss of income, structural damage and pain and suffering. How much liability should you purchase? That is a personal decision, but consider buying as large an amount as possible.

Medical payments coverage and PIP

Medical payments and Personal Injury Protection insurance provide coverage for bills such as doctor visits, nursing services and rehabilitation expenses. The coverages can be utilized in addition to your health insurance plan or if there is no health insurance coverage. They cover both the driver and occupants in addition to any family member struck as a pedestrian. PIP is not an option in every state and may carry a deductible

Uninsured/Underinsured Motorist coverage

This coverage gives you protection from other drivers when they either have no liability insurance or not enough. This coverage pays for injuries sustained by your vehicle’s occupants and also any damage incurred to your BMW 5 Series.

Since many drivers have only the minimum liability required by law, it doesn’t take a major accident to exceed their coverage limits. That’s why carrying high Uninsured/Underinsured Motorist coverage is very important. Normally your uninsured/underinsured motorist coverages are identical to your policy’s liability coverage.

Take this to the bank

Insureds who switch companies do it for a variety of reasons including high prices, poor customer service, policy cancellation or extreme rates for teen drivers. Regardless of your reason, choosing a new insurance company is not as difficult as it may seem.

Cost effective 2006 BMW 5 Series insurance is available both online and with local insurance agents, so you need to quote insurance coverage with both to have the best chance of lowering rates. Some car insurance companies don’t offer online rate quotes and many times these regional carriers work with local independent agents.

As you quote insurance coverage, you should never reduce coverage to reduce premium. There have been many cases where consumers will sacrifice full coverage only to discover later that it was a big error on their part. The proper strategy is to buy a smart amount of coverage at the best price while not skimping on critical coverages.

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