Having to pay for overpriced auto insurance can take a big chunk out of your checking account and put the squeeze on your family’s finances. Doing a price comparison is a great way to tighten up your finances.
Many car insurance companies compete for your hard-earned dollar, so it’s not easy to compare every company to discover the definitive lowest rate
If you currently have car insurance, you should be able to reduce your rates substantially using these techniques. Buying car insurance is not that difficult. But consumers must learn how big insurance companies determine prices and apply this information to your search.
Properly insuring your vehicles can get expensive, but discounts can save money and there are some available that many people don’t even know exist. Some discounts apply automatically at quote time, but a few must be manually applied prior to receiving the credit.
Keep in mind that some credits don’t apply to the entire cost. A few only apply to the cost of specific coverages such as collision or personal injury protection. So when the math indicates it’s possible to get free car insurance, it just doesn’t work that way. But any discount will reduce your premiums.
For a list of companies with the best car insurance discounts, click this link.
It’s important that you understand the factors that go into determining your car insurance rates. Having a good understanding of what controls the rates you pay allows you to make educated decisions that could result in much lower annual insurance costs.
Listed below are some of the items companies use to determine premiums.
When it comes to buying adequate coverage for your vehicles, there is no “perfect” insurance plan. Every insured’s situation is different so this has to be addressed. These are some specific questions might point out if you will benefit from professional help.
If you can’t answer these questions but a few of them apply, you may need to chat with an agent. To find an agent in your area, simply complete this short form or click here for a list of auto insurance companies in your area.
Car insurance providers like Allstate, Geico and Progressive consistently run ads on TV and radio. They all make the same claim of big savings if you change your policy. How does each company claim to save you money? This is how they do it.
Insurance companies have a preferred profile for the driver that is profitable for them. For instance, a driver they prefer might be profiled as between 30 and 50, has no prior claims, and has a high credit rating. Any new insured who meets those qualifications is entitled to the best price and is almost guaranteed to save quite a bit of money when switching.
Potential customers who don’t measure up to the requirements must pay a more expensive rate and this can result in business going elsewhere. The ads say “people who switch” not “everyone that quotes” save money. This is how companies can state the savings.
This illustrates why drivers must quote coverage with many companies. It’s just too difficult to predict which company will fit your personal profile best.
Knowing the specifics of a car insurance policy aids in choosing appropriate coverage and proper limits and deductibles. Policy terminology can be impossible to understand and even agents have difficulty translating policy wording. Listed below are typical coverages offered by car insurance companies.
Liability
Liability coverage will cover injuries or damage you cause to a person or their property. This insurance protects YOU from claims by other people, and does not provide coverage for damage sustained by your vehicle in an accident.
Liability coverage has three limits: per person bodily injury, per accident bodily injury, and a property damage limit. You commonly see policy limits of 100/300/100 which stand for a $100,000 limit per person for injuries, a total of $300,000 of bodily injury coverage per accident, and a limit of $100,000 paid for damaged property. Another option is 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 protects against claims such as medical expenses, medical services and attorney fees. How much coverage you buy is up to you, but consider buying higher limits if possible.
Collision protection
This coverage pays for damage to your 3000GT from colliding with another car or object. You first must pay a deductible and then insurance will cover the remainder.
Collision coverage pays for things like damaging your car on a curb, crashing into a ditch and sideswiping another vehicle. Collision is rather expensive coverage, so consider removing coverage from older vehicles. Another option is to choose a higher deductible to save money on collision insurance.
Comprehensive coverage
Comprehensive insurance will pay to fix damage caused by mother nature, theft, vandalism and other events. A deductible will apply then your comprehensive coverage will pay.
Comprehensive insurance covers things like a tree branch falling on your vehicle, falling objects, fire damage and theft. The maximum payout a car insurance company will pay at claim time is the market value of your vehicle, so if it’s not worth much more than your deductible consider removing comprehensive coverage.
Medical payments coverage and PIP
Med pay and PIP coverage provide coverage for bills for things like funeral costs, ambulance fees, surgery, rehabilitation expenses and hospital visits. They are often used to cover expenses not covered by your health insurance program or if you lack health insurance entirely. Medical payments and PIP cover you and your occupants and will also cover if you are hit as a while walking down the street. PIP is only offered in select states and gives slightly broader coverage than med pay
Uninsured/Underinsured Motorist coverage
This coverage protects you and your vehicle’s occupants from other drivers when they do not carry enough liability coverage. Covered claims include hospital bills for your injuries as well as damage to your Mitsubishi 3000GT.
Since a lot of drivers only carry the minimum required liability limits, it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage is important protection for you and your family. Normally the UM/UIM limits are set the same as your liablity limits.
Low-cost 1995 Mitsubishi 3000GT insurance is available both online and with local insurance agents, and you should be comparing both in order to have the best chance of saving money. Some insurance companies do not offer online price quotes and most of the time these small insurance companies sell through independent agents.
We’ve covered many tips how you can compare insurance prices online. The key thing to remember is the more rate quotes you have, the better chance you’ll have of finding lower rates. Consumers may even find the lowest priced insurance comes from the smaller companies. These companies may have significantly lower rates on certain market segments as compared to the big name companies such as State Farm and Allstate.
As you shop your coverage around, don’t be tempted to reduce coverage to reduce premium. In many cases, someone dropped liability limits or collision coverage only to discover later that a couple dollars of savings turned into a financial nightmare. Your aim should be to get the best coverage possible for the lowest price.
Additional insurance information is located at the links below