Did you fall for a flashy sales pitch and buy overpriced car insurance? You’re in good company because many drivers have buyer’s remorse. Insurance companies such as Geico and Progressive continually hit you with advertising and it can be hard to ignore the flashy ads and do the work needed to find the best deal.
Auto insurance is neither fun to buy or cheap, but there could be significant discounts to help offset the cost. Some trigger automatically at the time you complete a quote, but a few need to be asked about before you will receive the discount. If you are not receiving all the discounts available, you are throwing money away.
A little note about advertised discounts, most credits do not apply to the entire policy premium. Most only reduce the cost of specific coverages such as liability, collision or medical payments. Even though the math looks like you would end up receiving a 100% discount, companies wouldn’t make money that way.
Popular auto insurance companies and a partial list of their discounts can be read below.
When quoting, ask each insurance company how many discounts you can get. Depending on the company, some discounts might not apply in every state.
When buying proper insurance coverage for your personal vehicles, there really is not a best way to insure your cars. Everyone’s situation is a little different and a cookie cutter policy won’t apply. For example, these questions could help you determine if you would benefit from professional advice.
If it’s difficult to answer those questions but you think they might apply to your situation then you might want to talk to an insurance agent. To find lower rates from a local agent, take a second and complete this form or go to this page to view a list of companies. It only takes a few minutes and may give you better protection.
Learning about specific coverages of car insurance can help you determine appropriate coverage at the best deductibles and correct limits. Car insurance terms can be ambiguous and even agents have difficulty translating policy wording. Shown next are the normal coverages available from car insurance companies.
Collision – Collision coverage will pay to fix damage to your Fit from colliding with another vehicle or an object, but not an animal. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision can pay for things like colliding with a tree, hitting a parking meter and sustaining damage from a pot hole. Collision coverage makes up a good portion of your premium, so analyze the benefit of dropping coverage from vehicles that are older. Another option is to raise the deductible to save money on collision insurance.
Comprehensive auto coverage – Comprehensive insurance coverage pays for damage OTHER than collision with another vehicle or object. You first have to pay a deductible and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage pays for claims like a broken windshield, rock chips in glass and theft. The maximum amount your car insurance company will pay is the ACV or actual cash value, so if the vehicle’s value is low consider dropping full coverage.
UM/UIM (Uninsured/Underinsured Motorist) coverage – This protects you and your vehicle’s occupants from other motorists when they either have no liability insurance or not enough. It can pay for medical payments for you and your occupants as well as your vehicle’s damage.
Due to the fact that many drivers have only the minimum liability required by law, it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage is very important.
Liability coverage – This can cover damage or injury you incur to a person or their property in an accident. Liability coverage has three limits: per person bodily injury, per accident bodily injury, and a property damage limit. Your policy might show values of 25/50/25 that means you have $25,000 bodily injury coverage, a limit of $50,000 in injury protection per accident, and $25,000 of coverage for damaged propery.
Liability coverage protects against claims like legal defense fees, funeral expenses and emergency aid. How much liability should you purchase? That is a decision to put some thought into, but buy as much as you can afford.
Medical payments and PIP coverage – Personal Injury Protection (PIP) and medical payments coverage reimburse you for immediate expenses such as EMT expenses, rehabilitation expenses, ambulance fees, dental work and doctor visits. They are often used in conjunction with a health insurance policy or if you lack health insurance entirely. It covers you and your occupants and also covers if you are hit as a while walking down the street. Personal Injury Protection is not an option in every state and may carry a deductible
As you prepare to switch companies, it’s a bad idea to skimp on coverage in order to save money. In too many instances, an accident victim reduced uninsured motorist or liability limits and discovered at claim time that the savings was not a smart move. The ultimate goal is to buy the best coverage you can find at the best cost, but don’t skip important coverages to save money.
We just covered a lot of tips how to reduce 2013 Honda Fit insurance premium rates online. It’s most important to understand that the more rate quotes you have, the higher the chance of saving money. Consumers may even find the lowest priced auto insurance comes from a small mutual company. These companies can often insure niche markets at a lower cost than their larger competitors like State Farm or Progressive.
Much more information about auto insurance can be found on the following sites: