Having to pay for high-priced car insurance can dwindle your savings and force you to make tough financial choices.
Companies like State Farm, GEICO and Farmers Insurance promote their brand names with ad campaigns and it is challenging if not impossible to not get sucked in by the cute commercials and do the work needed to find the best deal.
If you are paying for car insurance now, you will be able to cut costs considerably using these techniques. Buying car insurance is not that difficult. But consumers must know the methods companies use to market on the web and take advantage of how the system works.
There are multiple methods to shop for insurance, and some are less time-consuming than others. You can spend your afternoon talking about coverages with agents in your area, or you can utilize the web to get the quickest rates.
Most of the larger companies take part in a program where prospective buyers enter their coverage request one time, and each company then returns a price quote for coverage. This eliminates the need for repetitive form submissions for every insurance company.
To use this form to compare rates click here (opens in new window).
The one downside to getting quotes like this is you are unable to specify which companies to get quotes from. So if you prefer to choose specific providers to compare rates, we have assembled a list of insurance companies in your area. Click to view list.
It’s up to you which method you use, but make sure you compare the exact same coverages and limits with every price quote. If your comparisons have different values for each quote you will not be able to decipher which rate is best. Even a minor difference in limits could skew the results. And when price shopping your coverage, comparing more quotes provides better odds of finding the best rates. Not every company allows you to get quotes online, so you should also compare price quotes from them, too.
Progressive, GEICO, Allstate and State Farm regularly use ads in print and on television. All the ads make the point that you’ll save big just by moving your insurance coverage coverage to their company. How does every company charge lower premium rates? It’s all in the words they use.
Different companies have a certain “appetite” for the type of customer that will most likely be profitable. A good example of a profitable customer could be married and over the age of 30, carries full coverage, and drives newer vehicles. A customer who fits those characteristics will get low rates and will also save a lot of money.
Potential customers who fall short of the ideal profile will have to pay a higher rate and this results in the customer not purchasing. If you listen closely, the ads state “people who switch” but not “everyone who gets a quote” save that much. That’s the way insurance companies can make it sound like they have such great premium rates. Because of the profiling, you absolutely need to do a price quote comparison at every renewal. It is just not possible to predict which insurance coverage company will have the best car insurance rates at this point in time.
Many different elements are part of the equation when you quote your car insurance policy. A few of the factors are predictable such as your driving record, although others are more transparent like your vehicle usage or your commute time.
Insurance coverage is expensive, but there may be some discounts to reduce the price significantly. Certain credits will be shown when you complete an application, but occassionally some discounts must be inquired about prior to getting the savings. If you do not double check each discount available, you are not getting the best rate possible.
Drivers should understand that most discount credits are not given to your bottom line cost. The majority will only reduce individual premiums such as comp or med pay. Just because you may think all those discounts means the company will pay you, you won’t be that lucky.
Companies who may offer these benefits include:
Before you buy a policy, ask all the companies to give you their best rates. Depending on the company, some discounts may not apply to policyholders in every state. If you would like to choose from a list of companies that have a full spectrum of discounts, follow this link.
When it comes to choosing coverage for your vehicles, there really is not a cookie cutter policy. Everyone’s situation is a little different and your policy should reflect that. These are some specific questions might point out whether your personal situation would benefit from an agent’s advice.
If it’s difficult to answer those questions, you might consider talking to an agent. If you don’t have a local agent, fill out this quick 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 and the correct deductibles and limits. The coverage terms in a policy can be confusing and reading a policy is terribly boring. These are typical coverages offered by insurance companies.
Coverage for medical expenses
Med pay and PIP coverage provide coverage for bills like nursing services, prosthetic devices, chiropractic care, dental work and doctor visits. They are often used to fill the gap from your health insurance program or if you do not have health coverage. It covers not only the driver but also the vehicle occupants and will also cover any family member struck as a pedestrian. PIP is not an option in every state but it provides additional coverages not offered by medical payments coverage
Collision insurance covers damage to your Probe from colliding with another car or object. You first must pay a deductible then the remaining damage will be paid by your insurance company.
Collision coverage pays for things such as scraping a guard rail, sideswiping another vehicle and crashing into a building. This coverage can be expensive, so analyze the benefit of dropping coverage from lower value vehicles. Another option is to bump up the deductible to get cheaper collision coverage.
Liability auto insurance
This coverage can cover damage or injury you incur to a person or their property. This insurance protects YOU against other people’s claims, and doesn’t cover your own vehicle damage or injuries.
Coverage consists of three different limits, bodily injury per person, bodily injury per accident and property damage. You might see values of 25/50/25 which stand for $25,000 in coverage for each person’s injuries, a per accident bodily injury limit of $50,000, and property damage coverage for $25,000.
Liability insurance covers claims such as legal defense fees, court costs and loss of income. The amount of liability coverage you purchase is your choice, but buy as high a limit as you can afford.
Coverage for uninsured or underinsured drivers
Uninsured or Underinsured Motorist coverage gives you protection from other drivers when they do not carry enough liability coverage. This coverage pays for injuries sustained by your vehicle’s occupants and also any damage incurred to your 1995 Ford Probe.
Since many drivers have only the minimum liability required by law, it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is a good idea.
This pays to fix your vehicle from damage that is not covered by collision coverage. You first must pay your deductible then your comprehensive coverage will pay.
Comprehensive can pay for things such as fire damage, hitting a bird and damage from a tornado or hurricane. The most you can receive from a comprehensive claim is the market value of your vehicle, so if the vehicle is not worth much it’s not worth carrying full coverage.
Some insurance providers do not offer online rate quotes and many times these smaller providers prefer to sell through independent insurance agencies. Cheap 1995 Ford Probe insurance is available both online as well as from independent agents, and you should be comparing both to have the best chance of lowering rates.
When trying to cut insurance costs, it’s very important that you do not skimp on coverage in order to save money. There have been many cases where someone dropped liability coverage limits and learned later that they should have had better coverage. Your goal is to get the best coverage possible at the best cost and still be able to protect your assets.
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