Are you burned out from not being able to afford to pay your insurance bill each month? Your situation is no different than millions of other drivers.
Online insurance companies like Progressive, State Farm and Geico continually bombard you with fancy advertisements and it can be hard to ignore the flashy ads and do the work needed to find the best deal.
If you currently have car insurance, you should be able to save some money using these tips. Finding the best rates is not rocket science. But vehicle owners can benefit by having an understanding of the way companies price insurance differently because it can help you find the best coverage.
Shopping for lower auto insurance rates can be exhausting if you don’t understand the easiest way. You could waste time driving to agents in your area, or you could save time and use online quotes for quick rates.
Many popular insurance companies belong to an insurance system where prospective buyers send in one quote, and each company provides a quote. This prevents consumers from doing quote requests to each company.
To compare pricing click here (opens in new window).
The only downside to pricing coverage this way is you don’t know exactly the providers to get quotes from. So if you prefer to pick individual companies to compare rates, we put together a list of auto insurance companies in your area. Click here to view list.
Compare rates however you want, just be sure you’re using equivalent coverage information for every quote you compare. If you have different deductibles it’s not possible to determine the lowest rate for your Mazda 6. Just slight variations in insurance coverages or limits could skew the results. Keep in mind that comparing more company’s prices helps improve the odds of finding a better price.
Respected companies like Progressive, Geico, Allstate and State Farm constantly bombard you with ads in print and on television. They all make an identical promise that people will save after switching your policy. It sounds good, but how can they all charge you a lower premium? Here is how they do it.
All the different companies give the best rates for the type of driver that will most likely be profitable. A good example of a desirable insured might be described as between 25 and 40, owns a home, and has a short commute. Any driver that matches those criteria may get the lowest car insurance rates and therefore will save quite a bit of money when switching.
Consumers who don’t qualify for this ideal profile must pay a more expensive rate and business going elsewhere. Company advertisements say “drivers who switch” not “everyone who quotes” can save as much as they claim. That’s the way companies can truthfully make those statements. Because each company has a different risk profile, you really should get insurance coverage quotes from several different companies. Because you cannot predict which company will have better rates than you’re paying now.
The best way to find cheaper insurance is to take a look at some of the factors that are used to determine your premiums. When consumers understand what controls the rates you pay, this enables informed choices that will entitle you to much lower annual insurance costs. Many things are part of the equation when you quote your car insurance policy. Most are fairly basic like your driving record, although others are less apparent such as your marital status or your financial responsibility.
Buying auto insurance is not cheap, but you might already qualify for some discounts that you may not know about. Many of these discounts will be applied automatically at the time of quoting, but once in a while a discount must be specially asked for before being credited.
As a footnote on discounts, most credits do not apply to the entire policy premium. Some only apply to the cost of specific coverages such as comp or med pay. So even though it sounds like it’s possible to get free car insurance, you aren’t that lucky.
If you would like to see a list of insurance companies with the best discounts, follow this link.
When it comes to choosing coverage for your vehicles, there really is not a single plan that fits everyone. Every insured’s situation is different and a cookie cutter policy won’t apply. These are some specific questions might point out if your insurance needs might need an agent’s assistance.
If you can’t answer these questions, you might consider talking to a licensed insurance agent. If you don’t have a local agent, complete this form or you can go here for a list of companies in your area.
Knowing the specifics of a car insurance policy helps when choosing the right coverages and proper limits and deductibles. Car insurance terms can be difficult to understand and coverage can change by endorsement. These are the usual coverages found on most car insurance policies.
Collision – Collision insurance pays to fix your vehicle from damage resulting from a collision with an object or car. A deductible applies then your collision coverage will kick in.
Collision can pay for things like driving through your garage door, damaging your car on a curb, sustaining damage from a pot hole and hitting a parking meter. Paying for collision coverage can be pricey, so consider dropping it from lower value vehicles. Another option is to bump up the deductible to save money on collision insurance.
Comprehensive insurance – Comprehensive insurance coverage will pay to fix damage caused by mother nature, theft, vandalism and other events. You first have to pay a deductible and then insurance will cover the rest of the damage.
Comprehensive can pay for things such as damage from a tornado or hurricane, a broken windshield, fire damage, hail damage and hitting a deer. The maximum payout you can receive from a comprehensive claim is the ACV or actual cash value, so if your deductible is as high as the vehicle’s value it’s probably time to drop comprehensive insurance.
Uninsured/Underinsured Motorist (UM/UIM) – Your UM/UIM coverage provides protection when other motorists either are underinsured or have no liability coverage at all. This coverage pays for hospital bills for your injuries and also any damage incurred to your Mazda 6.
Due to the fact that many drivers carry very low liability coverage limits, their liability coverage can quickly be exhausted. For this reason, having high UM/UIM coverages is important protection for you and your family.
Liability auto insurance – This provides protection from injuries or damage you cause to a person or their property. It protects you against other people’s claims. Liability doesn’t cover damage sustained by your vehicle in an accident.
It consists of three limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You commonly see liability limits of 25/50/25 which stand for $25,000 in coverage for each person’s injuries, a limit of $50,000 in injury protection per accident, and $25,000 of coverage for damaged propery.
Liability can pay for claims such as emergency aid, medical services, medical expenses and repair costs for stationary objects. The amount of liability coverage you purchase is up to you, but buy as large an amount as possible.
Med pay and Personal Injury Protection (PIP) – Med pay and PIP coverage pay for bills for things like rehabilitation expenses, EMT expenses, funeral costs, nursing services and chiropractic care. They are often used to fill the gap from your health insurance policy or if you are not covered by health insurance. Coverage applies to not only the driver but also the vehicle occupants as well as if you are hit as a while walking down the street. PIP is not an option in every state but can be used in place of medical payments coverage
As you quote insurance coverage, make sure you don’t skimp on critical coverages to save a buck or two. There are a lot of situations where an accident victim reduced uninsured motorist or liability limits only to regret that their decision to reduce coverage ended up costing them more. Your focus should be to find the BEST coverage for the lowest price, but do not skimp to save money.
More affordable insurance can be sourced online and with local insurance agents, and you should compare price quotes from both to have the best rate selection. A few companies may not offer price quotes online and these regional insurance providers prefer to sell through independent insurance agents.