Did budget coverage turn out to be overpriced car insurance? Trust us when we tell you there are many drivers thinking the same thing. Popular companies such as Allstate and Progressive persitently shower you with advertising and consumers find it hard to separate fact from fiction and find the best price available.
If you have a policy now or need a new policy, you can learn to cut your premiums while maintaining coverages. Choosing the best insurance company for you is not rocket science. Consumers only need to know the best way to get comparison rates on the web.
Shopping for lower auto insurance rates can be exhausting if you aren’t aware of the best way to get rate quotes. You could waste a few hours talking about coverages with agents in your area, or you could save time and use the web to get prices fast.
Many popular insurance companies participate in an industry program that allows shoppers to complete one form, and each participating company then gives them pricing based on the submitted data. This eliminates the need for form submissions for each company you want a rate for.
To use this form to compare rates click to open in new window.
The one downside to using this type of form is you don’t know exactly the companies to get quotes from. If you would rather choose individual companies to compare, we have a listing of the cheapest auto insurance companies in your area. Click to view list.
It’s up to you how you get prices quotes, just make sure you compare the exact same quote data with every price quote. If you have different liability limits it will be very difficult to determine which company has the best rates.
Some companies don’t always advertise all their discounts in an easy-to-find place, so the next list breaks down a few of the more common and also the more inconspicuous discounts you could be receiving when you buy auto insurance online. If you check and find you aren’t receiving every discount possible, you may be paying too high a price.
As is typical with insurance, most discount credits are not given the the whole policy. Most only apply to the price of certain insurance coverages like liability and collision coverage. So even though it sounds like having all the discounts means you get insurance for free, it just doesn’t work that way.
For a list of providers who offer discounts, click here.
Lots of things are used when quoting car insurance. Some of the criteria are obvious such as your driving history, but others are more transparent such as whether you are married or how safe your car is.
Shown below are a partial list of the pieces utilized by car insurance companies to help set premiums.
When choosing the right insurance coverage for your personal vehicles, there really is no one size fits all plan. Every situation is different so this has to be addressed. For example, these questions may help you determine whether you might need an agent’s assistance.
If you can’t answer these questions but you think they might apply to your situation then you might want to talk to a licensed insurance agent. If you don’t have a local agent, simply complete this short form or you can go here for a list of companies in your area. It’s fast, free and may give you better protection.
Consumers can’t avoid all the ads for the lowest price insurance coverage from the likes of 21st Century, Allstate and State Farm. All the companies advertise the message that you’ll save big if you change your coverage.
Is it even possible that every company can offer you a better deal? Here is how they do it.
Insurance coverage companies quote their best rates for the type of driver that makes them money. An example of a profitable risk profile could possibly be over the age of 50, has never had a policy lapse, and has great credit. A customer who meets those qualifications receive the lowest rate quotes and will probably save if they switch.
Consumers who do not match the “perfect” profile will see higher premiums and this can result in the prospect going elsewhere. Company advertisements say “people who switch” but not “all drivers who get quotes” save money. That’s why companies can truthfully claim big savings.
This really illustrates why you need to compare many company’s prices. It is just not possible to predict the company that will give you lower premium rates than your current company.
Learning about specific coverages of a car insurance policy can help you determine the right coverages at the best deductibles and correct limits. The coverage terms in a policy can be ambiguous and nobody wants to actually read their policy. Shown next are typical coverages found on most car insurance policies.
Collision coverages – Collision coverage will pay to fix damage to your Insight from colliding with an object or car. A deductible applies and the rest of the damage will be paid by collision coverage.
Collision can pay for claims such as hitting a parking meter, hitting a mailbox and rolling your car. Collision coverage makes up a good portion of your premium, so consider removing coverage from vehicles that are 8 years or older. Drivers also have the option to bump up the deductible to save money on collision insurance.
UM/UIM (Uninsured/Underinsured Motorist) coverage – Your UM/UIM coverage protects you and your vehicle’s occupants when the “other guys” either have no liability insurance or not enough. This coverage pays for hospital bills for your injuries as well as your vehicle’s damage.
Because many people have only the minimum liability required by law, it only takes a small accident to exceed their coverage. So UM/UIM coverage should not be overlooked. Normally the UM/UIM limits are similar to your liability insurance amounts.
Comprehensive auto coverage – This coverage pays for damage that is not covered by collision coverage. You need to pay your deductible first and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive can pay for claims like fire damage, a broken windshield, damage from flooding, damage from getting keyed and rock chips in glass. The maximum payout a car insurance company will pay at claim time is the market value of your vehicle, so if the vehicle is not worth much it’s probably time to drop comprehensive insurance.
Medical payments and PIP coverage – Coverage for medical payments and/or PIP kick in for immediate expenses for things like surgery, rehabilitation expenses, doctor visits and funeral costs. The coverages can be used to cover expenses not covered by your health insurance program or if there is no health insurance coverage. They cover not only the driver but also the vehicle occupants in addition to if you are hit as a while walking down the street. Personal injury protection coverage is not an option in every state and gives slightly broader coverage than med pay
Liability coverage – This provides protection from injuries or damage you cause to a person or their property in an accident. It protects you from claims by other people. Liability doesn’t cover your injuries or vehicle damage.
Coverage consists of three different limits, bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. You commonly see limits of 100/300/100 that translate to $100,000 bodily injury coverage, a limit of $300,000 in injury protection per accident, and a total limit of $100,000 for damage to vehicles and property. Occasionally you may see a combined limit which provides one coverage limit without having the split limit caps.
Liability coverage protects against things like repair costs for stationary objects, court costs, loss of income, legal defense fees and medical expenses. How much liability should you purchase? That is a decision to put some thought into, but you should buy as large an amount as possible.
As you prepare to switch companies, it’s not a good idea to sacrifice coverage to reduce premiums. There are many occasions where consumers will sacrifice uninsured motorist or liability limits only to regret at claim time that the small savings ended up costing them much more. Your strategy should be to buy the best coverage you can find at the best price while still protecting your assets.
Low-cost 2012 Honda Insight insurance can be purchased from both online companies and from local insurance agents, so get free auto insurance quotes from both of them to get a complete price analysis. Some companies may not provide online quoting and most of the time these regional carriers only sell through independent agents.
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