I can’t think of a single person who enjoys paying for insurance, especially when the price is too high.
You have multiple auto insurance companies to choose from, and although it’s a good thing to be able to choose, too many choices makes it more difficult to find the lowest rates.
An important part of buying insurance is that you know the factors that go into determining your car insurance rates. Knowing what impacts premium levels helps enable you to make changes that can help you get much lower annual insurance costs.
Companies don’t always list every discount very well, so the following is a list of some of the more common and the more hidden savings tricks you should be using.
It’s important to understand that most discount credits are not given the the whole policy. Most cut specific coverage prices like comprehensive or collision. So when the math indicates it’s possible to get free car insurance, companies wouldn’t make money that way.
Car insurance companies that may offer these money-saving discounts include:
Before buying, ask all companies you are considering what discounts are available to you. Savings may not be available in your state.
Car insurance providers like State Farm, Allstate and Geico regularly use ads in print and on television. They all say the same thing that you’ll save big if you move your policy. How does each company make almost identical claims? This is how they do it.
Different companies can use profiling for the type of customer that makes them money. An example of a driver they prefer could possibly be between the ages of 40 and 55, owns a home, and has a short commute. A customer that hits that “sweet spot” will qualify for the lowest rates and therefore will save when they switch companies.
Potential insureds who don’t measure up to these standards will be charged more money and this can result in business going elsewhere. The ads say “people who switch” but not “drivers who get quotes” save that kind of money. That’s why companies can truthfully make those claims. That is why you should compare as many rates as you can. It’s not possible to predict the company that will fit your personal profile best.
When it comes to buying the best auto insurance coverage, there is no one size fits all plan. Every insured’s situation is different and your policy should reflect that. For instance, these questions can help discover if your insurance needs would benefit from an agent’s advice.
If it’s difficult to answer those questions but one or more may apply to you, then you may want to think about talking to an agent. To find lower rates from a local agent, complete this form or click here for a list of auto insurance companies in your area.
Understanding the coverages of a insurance policy helps when choosing the right coverages at the best deductibles and correct limits. Policy terminology can be ambiguous and coverage can change by endorsement. These are the normal coverages found on most insurance policies.
Liability auto insurance
Liability coverage protects you from injuries or damage you cause to a person or their property that is your fault. This insurance protects YOU from claims by other people, and doesn’t cover your own vehicle damage or injuries.
Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You commonly see policy limits of 50/100/50 that means you have $50,000 in coverage for each person’s injuries, $100,000 for the entire accident, and a limit of $50,000 paid for damaged property.
Liability insurance covers claims such as legal defense fees, attorney fees and medical expenses. How much coverage you buy is a personal decision, but consider buying as high a limit as you can afford.
Medical payments and PIP coverage
Medical payments and Personal Injury Protection insurance provide coverage for bills for things like ambulance fees, prosthetic devices, chiropractic care and dental work. They are often used to cover expenses not covered by your health insurance plan or if there is no health insurance coverage. Medical payments and PIP cover both the driver and occupants and also covers any family member struck as a pedestrian. PIP is only offered in select states and gives slightly broader coverage than med pay
UM/UIM (Uninsured/Underinsured Motorist) coverage
Uninsured or Underinsured Motorist coverage gives you protection when other motorists either are underinsured or have no liability coverage at all. Covered claims include hospital bills for your injuries as well as your vehicle’s damage.
Because many people only purchase the least amount of liability that is required, it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage is a good idea.
Collision coverage protection
Collision coverage pays for damage to your Swift resulting from a collision with another car or object. You have to pay a deductible then the remaining damage will be paid by your insurance company.
Collision can pay for claims such as sideswiping another vehicle, rolling your car, crashing into a ditch, colliding with another moving vehicle and hitting a parking meter. Collision coverage makes up a good portion of your premium, so consider dropping it from lower value vehicles. It’s also possible to raise the deductible to bring the cost down.
Comprehensive auto coverage
This coverage pays to fix your vehicle from damage from a wide range of events other than collision. You need to pay your deductible first then your comprehensive coverage will pay.
Comprehensive can pay for things like damage from a tornado or hurricane, hail damage, a broken windshield, damage from getting keyed and a tree branch falling on your vehicle. The highest amount a insurance company will pay at claim time is the ACV or actual cash value, so if it’s not worth much more than your deductible consider removing comprehensive coverage.
Low-cost 1996 Suzuki Swift insurance can be sourced from both online companies and also from your neighborhood agents, and you need to comparison shop both in order to have the best chance of saving money. Some insurance companies may not provide the ability to get a quote online and usually these smaller companies provide coverage only through local independent agents.
In this article, we presented many ideas to save on insurance. It’s most important to understand that the more you quote, the more likely it is that you will get a better rate. Consumers may even find the lowest priced insurance comes from a small local company. Some small companies often have lower prices on specific markets than their larger competitors like Allstate and Progressive.
When you buy insurance online, never reduce needed coverages to save money. In too many instances, an insured cut liability limits or collision coverage to discover at claim time that a couple dollars of savings turned into a financial nightmare. Your focus should be to buy a smart amount of coverage at a price you can afford.