Expensive car insurance can dwindle your checking account and make it impossible to make ends meet. Doing a price comparison is a smart way to tighten up your finances. Many auto insurance companies compete for your insurance dollar, and it can be difficult to compare rates and uncover the absolute lowest rate possible.
Insuring your vehicles can cost a lot, buy you may qualify for discounts to reduce the price significantly. Most are applied at the time of quoting, but lesser-known reductions have to be specially asked for before you will receive the discount. If you don’t get every credit available, you are throwing money away.
Drivers should understand that some credits don’t apply to all coverage premiums. Some only reduce specific coverage prices like physical damage coverage or medical payments. So when it seems like you would end up receiving a 100% discount, you’re out of luck. But all discounts will cut your overall premium however.
Insurance companies that possibly offer these discounts include:
Check with each company what discounts are available to you. All car insurance discounts may not be available in your state.
When buying adequate coverage, there really is not a cookie cutter policy. Everyone’s situation is a little different so your insurance needs to address that. Here are some questions about coverages that may help highlight whether your personal situation might need professional guidance.
If you can’t answer these questions but one or more may apply to you, then you may want to think about talking to a licensed insurance agent. To find lower rates from a local agent, take a second and complete this form or you can go here for a list of companies in your area. It only takes a few minutes and may give you better protection.
Having a good grasp of a auto insurance policy can be of help when determining appropriate coverage at the best deductibles and correct limits. The coverage terms in a policy can be ambiguous and nobody wants to actually read their policy. Below you’ll find typical coverage types found on most auto insurance policies.
Collision coverages – Collision coverage pays to fix your vehicle from damage from colliding with a stationary object or other vehicle. You first must pay a deductible then your collision coverage will kick in.
Collision coverage pays for claims such as crashing into a building, sustaining damage from a pot hole, driving through your garage door, hitting a mailbox and hitting a parking meter. Collision coverage makes up a good portion of your premium, so consider removing coverage from older vehicles. Another option is to choose a higher deductible to save money on collision insurance.
Uninsured and underinsured coverage – This coverage protects you and your vehicle when other motorists either are underinsured or have no liability coverage at all. This coverage pays for medical payments for you and your occupants as well as your vehicle’s damage.
Since a lot of drivers have only the minimum liability required by law, it only takes a small accident to exceed their coverage. So UM/UIM coverage is a good idea. Normally your uninsured/underinsured motorist coverages are identical to your policy’s liability coverage.
Coverage for medical payments – Medical payments and Personal Injury Protection insurance kick in for short-term medical expenses for things like EMT expenses, ambulance fees and prosthetic devices. The coverages can be used in conjunction with a health insurance program 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 coverage is not available in all states but can be used in place of medical payments coverage
Liability coverage – This coverage can cover injuries or damage you cause to people or other property. This insurance protects YOU against other people’s claims, and does not provide coverage for damage to your own property or vehicle.
Liability coverage has three limits: bodily injury per person, bodily injury per accident and property damage. You might see values of 100/300/100 that translate to a $100,000 limit per person for injuries, a per accident bodily injury limit of $300,000, and $100,000 of coverage for damaged propery. Another option is a combined limit which combines the three limits into one amount and claims can be made without the split limit restrictions.
Liability can pay for claims such as legal defense fees, bail bonds, court costs, repair costs for stationary objects and structural damage. How much coverage you buy is a decision to put some thought into, but buy higher limits if possible.
Comprehensive coverages – Comprehensive insurance pays for damage from a wide range of events other than collision. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage pays for claims like damage from flooding, theft, hitting a deer and hail damage. The maximum payout a auto insurance company will pay at claim time is the cash value of the vehicle, so if the vehicle’s value is low it’s probably time to drop comprehensive insurance.
Throughout this article, we presented a lot of tips how to get a better price on 2006 Lexus GX 470 insurance. The key thing to remember is the more quotes you get, the higher the chance of saving money. You may even find the lowest priced insurance coverage comes from some of the smallest insurance companies. They may have significantly lower rates on certain market segments compared to the large companies like Allstate or State Farm.
As you prepare to switch companies, make sure you don’t reduce coverage to reduce premium. There are too many instances where drivers have reduced comprehensive coverage or liability limits only to regret that a couple dollars of savings turned into a financial nightmare. The proper strategy is to purchase plenty of coverage at a price you can afford.