Have you had enough of being strong-armed each month for insurance coverage? You are no different than the majority of other consumers. There are many auto insurance companies to buy insurance from, and although it’s a good thing to have a selection, having more insurers makes it harder to compare rates.
You need to compare prices at least once a year because rates fluctuate regularly. Even if you think you had the lowest rate on SL-Class coverage at your last renewal you may be paying too much now. Block out anything you think you know about insurance coverage because we’re going to demonstrate the fastest way to reduce your cost while improving coverage.
The method we recommend to get policy rate comparisons is to take advantage of the fact almost all companies provide online access to provide you with free rate quotes. All you need to do is provide the companies a bit of rating information such as how your vehicles are used, how much you drive, if the car is leased, and driver ages. Your details is then submitted to insurance companies and they return cost estimate instantly.
Consumers can’t ignore all the ads that promise big savings from companies such as Allstate and Progressive. All the ads have a common claim that people will save if you move your insurance coverage coverage to their company.
How does every company give you a lower rate? It’s all in the words they use.
Most companies can use profiling for the type of customer that will add to their bottom line. For example, a driver they prefer could be a female over age 40, has other policies, and drives less than 5,000 miles a year. Someone who fits that profile will get the preferred rates and will cut their rates if they switch.
Potential customers who do not match these criteria will probably be forced to pay more expensive rates and business not being written. Company advertisements say “drivers that switch” but not “all drivers who get quotes” save money. That’s the way companies can make those claims.
Because every company is different, you should compare many company’s car insurance rates. Because you cannot predict which insurance companies will give you the biggest savings.
It’s important that you understand the factors that come into play when calculating your premiums. If you know what influences your rates, this allows you to make educated decisions that may reward you with big savings. Lots of factors are used when you get your auto insurance bill. Some are pretty understandable like an MVR report, although others are more transparent such as your marital status or your vehicle rating.
The itemized list below are most of the major factors car insurance companies consider when setting prices.
The price of auto insurance can be rather high, but you might be missing out on some discounts that can dramatically reduce your bill. A few discounts will automatically apply when you complete an application, but lesser-known reductions have to be asked about before you get the savings.
We need to note that most discounts do not apply the the whole policy. A few only apply to the price of certain insurance coverages like comp or med pay. Even though the math looks like adding up those discounts means a free policy, it doesn’t quite work that way.
Larger insurance companies and some of their more popular discounts are shown below.
Before buying, ask each company or agent to give you their best rates. Some discounts listed above might not be offered on policies everywhere.
When it comes to choosing coverage, there is no cookie cutter policy. Each situation is unique and your policy should reflect that. Here are some questions about coverages that can aid in determining if your situation might need professional guidance.
If you can’t answer these questions, you may need to chat with a licensed agent. To find an agent in your area, fill out this quick form or you can also visit this page to select a carrier It only takes a few minutes and you can get the answers you need.
Learning about specific coverages of your policy can be of help when determining which coverages you need at the best deductibles and correct limits. The coverage terms in a policy can be ambiguous and even agents have difficulty translating policy wording. Below you’ll find typical coverages found on most insurance policies.
Collision coverage pays to fix your vehicle from damage from colliding with another vehicle or an object, but not an animal. You have to pay a deductible then your collision coverage will kick in.
Collision coverage pays for things like rolling your car, hitting a parking meter, damaging your car on a curb and scraping a guard rail. Collision is rather expensive coverage, so analyze the benefit of dropping coverage from older vehicles. You can also choose a higher deductible in order to get cheaper collision rates.
This will pay to fix damage that is not covered by collision coverage. You need to pay your deductible first then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things such as theft, damage from getting keyed, hitting a bird and a broken windshield. The maximum payout you can receive from a comprehensive claim is the cash value of the vehicle, so if the vehicle’s value is low consider removing comprehensive coverage.
This coverage protects you and your vehicle’s occupants when the “other guys” either are underinsured or have no liability coverage at all. It can pay for hospital bills for your injuries as well as your vehicle’s damage.
Since a lot of drivers only purchase the least amount of liability that is required, 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. Normally these limits are similar to your liability insurance amounts.
Liability coverage will cover damages or injuries you inflict on a person or their property by causing an accident. This insurance protects YOU from legal claims by others, and doesn’t cover damage sustained by your vehicle in an accident.
Split limit liability has three limits of coverage: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. You might see policy limits of 50/100/50 that means you have $50,000 bodily injury coverage, a total of $100,000 of bodily injury coverage per accident, and property damage coverage for $50,000. Alternatively, you may have one limit called combined single limit (CSL) which combines the three limits into one amount without having the split limit caps.
Liability insurance covers things like loss of income, medical expenses, pain and suffering, emergency aid and legal defense fees. How much coverage you buy is a personal decision, but buy higher limits if possible.
Med pay and PIP coverage reimburse you for short-term medical expenses for things like chiropractic care, pain medications, surgery and ambulance fees. The coverages can be used in conjunction with a health insurance policy or if you do not have health coverage. Coverage applies to not only the driver but also the vehicle occupants and also covers being hit by a car walking across the street. PIP coverage is not available in all states and may carry a deductible
When you buy auto insurance online, make sure you don’t sacrifice coverage to reduce premiums. There have been many cases where an accident victim reduced physical damage coverage only to regret at claim time that the savings was not a smart move. The proper strategy is to buy the best coverage you can find for the lowest price while not skimping on critical coverages.
Budget-friendly car insurance can be purchased on the web and also from your neighborhood agents, so get free auto insurance quotes from both of them in order to have the best chance of saving money. There are still a few companies who do not offer rate quotes online and many times these smaller providers only sell through local independent agencies.