Trying to come up with a payment for overpriced insurance coverage can dry up your accounts and put a big crunch on your finances. Companies like Progressive, Geico and Farmers Insurance continually bombard you with TV and radio ads and consumers find it hard to sift through the bull and find the best price available.
If you have a current auto insurance policy or are shopping for new coverage, you can use this information to cut your premiums while maintaining coverages. Choosing the best insurance company for you is easy if you know what you’re doing. Consumers just need to learn the most efficient way to get comparison quotes online.
The quickest way to compare insurance rates from multiple companies is to realize auto insurance companies participate in online systems to give free rates quotes. All you need to do is give them some information such as if the vehicle is leased, distance driven, whether the vehicles are used for commuting, and deductibles desired. The rating information gets sent immediately to many different companies and they provide comparison quotes within a short period of time.
Drivers constantly see and hear ads that claim the best auto insurance rates from the likes of Progressive, Geico, Allstate and State Farm. All the ads make the point of big savings just by switching to them.
How does each company charge you a lower premium?
Many companies offer their best rates for the type of driver that makes them money. For example, a driver they prefer could be a married female, has never had a policy lapse, and drives less than 10,000 miles a year. A customer that meets those criteria will get very good auto insurance rates and have a good chance to save when switching.
People who cannot meet those criteria will probably be forced to pay more expensive rates which leads to the customer not purchasing. The ads state “customers who switch” but not “everyone who gets a quote” can save as much as they claim. That’s the way insurance companies can confidently make claims that they all have the best rates. Because of these techniques, you should compare many company’s rates. It is impossible to guess which company will have the lowest prices for your situation.
Many different elements are used in the calculation when quoting car insurance. Some factors are common sense such as your driving history, but other criteria are more transparent such as your marital status and annual miles driven.
Some providers do not advertise all available discounts very clearly, so the list below gives a summary of a few of the more common and the more hidden discounts that you may qualify for.
As a disclaimer on discounts, some of the credits will not apply to the entire cost. A few only apply to specific coverage prices like comp or med pay. Even though it may seem like you could get a free auto insurance policy, insurance companies wouldn’t stay in business.
A list of companies and a partial list of their discounts are detailed below.
When quoting, ask each company or agent which credits you are entitled to. Some credits may not apply in your area. If you would like to choose from a list of auto insurance companies with the best auto insurance discounts, click this link.
When it comes to buying the right insurance coverage for your personal vehicles, there really is no perfect coverage plan. Coverage needs to be tailored to your specific needs so your insurance needs to address that. For example, these questions can help discover whether your personal situation could use an agent’s help.
If you’re not sure about those questions but a few of them apply, you might consider talking to an insurance agent. If you want to speak to an agent in your area, take a second and complete this form or go to this page to view a list of companies. It only takes a few minutes and may give you better protection.
Understanding the coverages of your policy helps when choosing appropriate coverage at the best deductibles and correct limits. The coverage terms in a policy can be difficult to understand and coverage can change by endorsement. Listed below are typical coverage types available from car insurance companies.
UM/UIM (Uninsured/Underinsured Motorist) coverage
This gives you protection from other drivers when they are uninsured or don’t have enough coverage. Covered claims include injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Since a lot of drivers have only the minimum liability required by law, their liability coverage can quickly be exhausted. This is the reason having UM/UIM coverage is very important.
Auto liability insurance
This can cover damage or injury you incur to other people or property in an accident. It protects you against other people’s claims, and does not provide coverage for damage sustained by your vehicle in an accident.
Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. Your policy might show limits of 25/50/25 that translate to a limit of $25,000 per injured person, $50,000 for the entire accident, and $25,000 of coverage for damaged propery.
Liability coverage pays for claims such as attorney fees, pain and suffering, funeral expenses, court costs and loss of income. How much coverage you buy is a decision to put some thought into, but buy as large an amount as possible.
Medical payments and PIP coverage
Coverage for medical payments and/or PIP provide coverage for expenses such as rehabilitation expenses, surgery and chiropractic care. They are utilized in addition to your health insurance program or if you do not have health coverage. It covers both the driver and occupants as well as if you are hit as a while walking down the street. PIP is not universally available but it provides additional coverages not offered by medical payments coverage
Comprehensive auto coverage
This coverage pays for damage that is not covered by collision coverage. You first must pay your deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage protects against things such as damage from getting keyed, falling objects and damage from flooding. The highest amount you’ll receive from a claim is the cash value of the vehicle, so if the vehicle is not worth much it’s not worth carrying full coverage.
Collision protection
This coverage pays for damage to your Sedona resulting from colliding with another car or object. A deductible applies then the remaining damage will be paid by your insurance company.
Collision coverage protects against claims such as colliding with another moving vehicle, damaging your car on a curb, crashing into a building, hitting a mailbox and crashing into a ditch. Collision coverage makes up a good portion of your premium, so consider removing coverage from lower value vehicles. You can also choose a higher deductible to get cheaper collision coverage.
Some insurance companies don’t offer online rate quotes and many times these regional insurance providers only sell through independent insurance agents. More affordable insurance is attainable from both online companies as well as from insurance agents, so you should compare both to have the best chance of lowering rates.
When buying insurance coverage, do not reduce needed coverages to save money. In many cases, an insured cut comprehensive coverage or liability limits only to regret that their decision to reduce coverage ended up costing them more. The ultimate goal is to purchase plenty of coverage at a price you can afford.
More detailed insurance information can be found at these sites: