Are you kicking yourself for buying high-priced auto insurance? You’re preaching to the choir because there are many drivers thinking the same thing.
Big-name insurance companies like State Farm, Geico and Farmers Insurance all promote huge savings with ads and it can be hard to not get sucked in by the cute commercials and effectively compare rates to find the best deal.
If you have car insurance now, you will most likely be able to save some money using these methods. Finding affordable coverage is easy if you know what you’re doing. But consumers should learn how big insurance companies determine prices and take advantage of how the system works.
The method we recommend to compare insurance rates in your area utilizes the fact most larger insurance companies allow for online access to give you rate quotes. The only thing you need to do is give them rating details including any included safety features, whether you are married, driver ages, and what your job is. Your rating data gets transmitted to insurance carriers in your area and they provide comparison quotes instantly to find the best rate.
Car insurance is not an enjoyable expense, but you may find discounts that can drop the cost substantially. Certain reductions will be credited at the time of purchase, but a few must be requested specifically prior to getting the savings.
Discounts save money, but please remember that most credits do not apply to all coverage premiums. Most only reduce the price of certain insurance coverages like comprehensive or collision. So even though you would think you would end up receiving a 100% discount, it’s just not the way it works.
Auto insurance companies who may offer these discounts are:
When comparing rates, check with every insurance company which discounts can lower your rates. Some discounts may not be offered in your area. To see insurers that provide some of the discounts listed above, click here.
When it comes to buying proper insurance coverage for your personal vehicles, there really is no “perfect” insurance plan. Everyone’s situation is unique so this has to be addressed. For example, these questions may help you determine if your situation might need an agent’s assistance.
If you’re not sure about those questions then you might want to talk to an agent. If you don’t have a local agent, simply complete this short form or click here for a list of car insurance companies in your area.
Many things are part of the equation when you get your auto insurance bill. Some are obvious such as traffic violations, but other criteria are less apparent like your continuous coverage or your financial responsibility.A large part of saving on auto insurance is knowing a few of the rating criteria that help determine your policy premiums. If you know what impacts premium levels, this allows you to make educated decisions that may reward you with much lower annual insurance costs.
Understanding the coverages of a insurance policy can help you determine the right coverages and proper limits and deductibles. The coverage terms in a policy can be ambiguous and nobody wants to actually read their policy. Below you’ll find typical coverages found on most insurance policies.
Medical costs insurance – Medical payments and Personal Injury Protection insurance provide coverage for expenses for nursing services, prosthetic devices, doctor visits, ambulance fees and surgery. They are used to cover expenses not covered by your health insurance policy or if you are not covered by health insurance. It covers you and your occupants and also covers getting struck while a pedestrian. PIP is only offered in select states and may carry a deductible
Collision – This pays to fix your vehicle from damage resulting 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 colliding with another moving vehicle, rolling your car, crashing into a building, damaging your car on a curb and sideswiping another vehicle. Collision is rather expensive coverage, so consider dropping it from older vehicles. Another option is to choose a higher deductible to bring the cost down.
UM/UIM Coverage – This protects you and your vehicle’s occupants when other motorists do not carry enough liability coverage. Covered losses include injuries sustained by your vehicle’s occupants as well as damage to your Mercedes-Benz C-Class.
Due to the fact that many drivers only purchase the least amount of liability that is required, it only takes a small accident to exceed their coverage. So UM/UIM coverage should not be overlooked. Usually the UM/UIM limits are similar to your liability insurance amounts.
Liability auto insurance – This coverage can cover injuries or damage you cause to other’s property or people. It protects you against other people’s claims. It does not cover your own vehicle damage or injuries.
Liability coverage has three limits: bodily injury per person, bodily injury per accident and property damage. You commonly see liability limits of 50/100/50 which stand for a $50,000 limit per person for injuries, a limit of $100,000 in injury protection per accident, and $50,000 of coverage for damaged propery. Alternatively, you may have one limit called combined single limit (CSL) which provides one coverage limit with no separate limits for injury or property damage.
Liability coverage pays for claims like funeral expenses, medical services and repair costs for stationary objects. How much liability coverage do you need? That is a personal decision, but consider buying as large an amount as possible.
Comprehensive or Other Than Collision – This coverage covers damage from a wide range of events other than collision. You need to pay your deductible first then the remaining damage will be covered by your comprehensive coverage.
Comprehensive insurance covers claims like damage from a tornado or hurricane, hitting a deer, vandalism and hitting a bird. The most your insurance company will pay is the market value of your vehicle, so if your deductible is as high as the vehicle’s value consider removing comprehensive coverage.
More affordable car insurance is possible online and with local insurance agents, so you should be comparing quotes from both in order to have the best chance of saving money. There are still a few companies who do not offer price quotes online and these smaller providers work with local independent agents.
When getting auto insurance quotes online, you should never reduce coverage to reduce premium. There are many occasions where someone sacrificed collision coverage only to find out that a couple dollars of savings turned into a financial nightmare. The aim is to buy the best coverage you can find for the lowest price, but do not sacrifice coverage to save money.