Are you drained from sacrificing other expenses to buy auto insurance? You’re in the same situation as many other drivers.
Due to the large number of online and local companies to choose from, it is very difficult to pick the lowest price insurance company.
This information will help you learn how car insurance quotes work and some tips to save money. If you have car insurance now, you will be able to lower your premiums substantially using these techniques. Although vehicle owners need to learn the way companies price insurance differently and use this information to your advantage.
Insurance coverage is expensive, but you can get discounts that many people don’t even know exist. A few discounts will be applied at the time you complete a quote, but a few must be requested specifically before you will receive the discount.
A little note about advertised discounts, most credits do not apply to the entire cost. Most only apply to the price of certain insurance coverages like liability, collision or medical payments. So when the math indicates it’s possible to get free car insurance, insurance companies wouldn’t stay in business. Any qualifying discounts will lower the cost of coverage.
The best insurance coverage companies and some of the discounts can be found below.
When comparing rates, check with each insurance company which discounts you may be entitled to. Some discounts listed above might not apply in your area. To locate insurers that have a full spectrum of discounts, follow this link.
When choosing the best auto insurance coverage, there isn’t really a single plan that fits everyone. Each situation is unique and a cookie cutter policy won’t apply. Here are some questions about coverages that can help discover if you would benefit from an agent’s advice.
If you’re not sure about those questions but you know they apply to you, then you may want to think about talking to an insurance agent. If you don’t have a local agent, complete this form or go to this page to view a list of companies.
Allstate, Geico and Progressive constantly bombard you with ads on TV and radio. All the ads make the same claim about savings if you change your policy. How can each company say the same thing? Here is the trick they use.
Insurance companies have underwriting criteria for a prospective insured that earns them a profit. An example of a desirable insured might have to be over the age of 35, owns a home, and drives newer vehicles. Any person that hits that “sweet spot” will most likely get cheap car insurance rates and have a good chance to save when they switch companies.
Potential insureds who do not fit those standards may be required to pay more expensive rates which usually ends up with the customer buying from someone else. The trick companies use is to say “customers that switch” not “everyone who quotes” save the amount stated. That is how companies can truthfully lure you into getting a quote.
Because of the profiling, you need to get a wide range of price quotes. It’s just too difficult to predict the company that will be your best fit.
Knowing the specifics of a car insurance policy can be of help when determining which coverages you need at the best deductibles and correct limits. Policy terminology can be difficult to understand and nobody wants to actually read their policy. Shown next are typical coverage types found on the average car insurance policy.
Insurance for medical payments – Med pay and PIP coverage kick in for immediate expenses such as chiropractic care, funeral costs and ambulance fees. The coverages can be utilized in addition to your health insurance policy or if there is no health insurance coverage. Medical payments and PIP cover both the driver and occupants in addition to getting struck while a pedestrian. Personal injury protection coverage is only offered in select states but can be used in place of medical payments coverage
Uninsured Motorist or Underinsured Motorist insurance – Your UM/UIM coverage protects you and your vehicle 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.
Due to the fact that many drivers only purchase the least amount of liability that is required, their liability coverage can quickly be exhausted. So UM/UIM coverage is important protection for you and your family. Frequently the UM/UIM limits are similar to your liability insurance amounts.
Liability coverages – Liability insurance can cover damage or injury you incur to other’s property or people that is your fault. It protects YOU from claims by other people. Liability doesn’t cover damage sustained by your vehicle in an accident.
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 25/50/25 that translate to $25,000 in coverage for each person’s injuries, $50,000 for the entire accident, and $25,000 of coverage for damaged propery. Alternatively, you may have one number which is a combined single limit which combines the three limits into one amount rather than limiting it on a per person basis.
Liability coverage pays for claims such as loss of income, medical expenses and pain and suffering. How much liability should you purchase? That is a decision to put some thought into, but consider buying as high a limit as you can afford.
Collision – Collision insurance pays for damage to your LR4 caused by collision with a stationary object or other vehicle. You have to pay a deductible then your collision coverage will kick in.
Collision coverage protects against claims like colliding with a tree, sideswiping another vehicle and backing into a parked car. This coverage can be expensive, so consider dropping it from vehicles that are 8 years or older. Another option is to increase the deductible in order to get cheaper collision rates.
Comprehensive coverage (or Other than Collision) – This coverage pays for damage from a wide range of events other than collision. You first have to pay a deductible and then insurance will cover the rest of the damage.
Comprehensive insurance covers claims like rock chips in glass, vandalism and fire damage. The most you can receive from a comprehensive claim is the cash value of the vehicle, so if your deductible is as high as the vehicle’s value consider dropping full coverage.
As you restructure your insurance plan, never skimp on critical coverages to save a buck or two. There are a lot of situations where drivers have reduced comprehensive coverage or liability limits only to discover later that the small savings ended up costing them much more. Your aim should be to purchase a proper amount of coverage for the lowest cost.
Cheaper insurance coverage can be sourced online in addition to many insurance agents, so get free auto insurance quotes from both of them to have the best selection. Some insurance companies don’t offer online price quotes and most of the time these regional insurance providers prefer to sell through local independent agents.