Did a good deal turn out to be an overpriced car insurance policy? It’s quite common and you are not the only one feeling buyer’s remorse. Lots of insurance companies contend for your hard-earned dollar, and it can be difficult to compare rates to find the absolute lowest price
It’s a great practice to shop coverage around once or twice a year since prices go up and down regularly. Even if you got the lowest price on Neon insurance two years ago you can probably find a better rate quote now. Ignore everything you know about car insurance because it’s time to teach you the right way to save on car insurance.
Many factors are used when quoting car insurance. A few of the factors are predictable like a motor vehicle report, although some other factors are more transparent such as your marital status or your financial responsibility.
The list below includes a few of the “ingredients” companies use to determine premiums.
Some insurance providers do not list every discount in a way that’s easy to find, so the following list contains a few of the more well known and the harder-to-find credits available to lower your premiums when you buy car insurance online. If you do not check that you are getting every discount possible, you could be saving more on your insurance.
While discounts sound great, it’s important to understand that most of the big mark downs will not be given to your bottom line cost. Most only apply to individual premiums such as collision or personal injury protection. So even though you would think you would end up receiving a 100% discount, you won’t be that lucky.
Large insurance companies and their possible discounts are shown below.
When quoting, ask all the companies to give you their best rates. Savings may not be available everywhere. To locate insurance companies that have a full spectrum of discounts, click here.
Consumers can’t get away from all the ads for auto insurance savings from companies such as State Farm, Allstate and GEICO. They all have a common claim that people will save just by moving to their company.
How can each company lower your rates?
Insurance companies can use profiling for the type of customer that will not have excessive claims. An example of a profitable insured should be between the ages of 30 and 50, has a low-risk occupation, and insures a new vehicle. Any person that fits those parameters will get low prices and therefore will save if they switch.
Potential insureds who are not a match for those criteria will probably be forced to pay higher rates which results in the customer buying from someone else. The wording the ads use say “people who switch” not “everybody who quotes” save that kind of money. This is how insurance companies can claim big savings.
Different companies use different criteria so you absolutely need to quote coverage with many companies. It is impossible to predict with any certainty which company will fit you best based on your risk profile.
When choosing proper insurance coverage, there really is no one size fits all plan. Everyone’s situation is a little different so your insurance needs to address that. For instance, these questions may help highlight if you would benefit from an agent’s advice.
If you’re not sure about those questions, then you may want to think about talking to an agent. If you want to speak to an agent in your area, take a second and complete this form or click here for a list of insurance coverage companies in your area. It’s fast, doesn’t cost anything and can provide invaluable advice.
Learning about specific coverages of a car insurance policy aids in choosing appropriate coverage for your vehicles. Policy terminology can be ambiguous and reading a policy is terribly boring. Shown next are typical coverage types found on the average car insurance policy.
Medical payments and PIP coverage
Personal Injury Protection (PIP) and medical payments coverage reimburse you for immediate expenses for things like hospital visits, prosthetic devices and nursing services. They are used to fill the gap from your health insurance program or if there is no health insurance coverage. It covers both the driver and occupants as well as getting struck while a pedestrian. Personal injury protection coverage is not an option in every state but can be used in place of medical payments coverage
UM/UIM (Uninsured/Underinsured Motorist) coverage
This protects you and your vehicle when the “other guys” either are underinsured or have no liability coverage at all. Covered losses include injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Since a lot of drivers only purchase the least amount of liability that is required, it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is a good idea. Most of the time these coverages are set the same as your liablity limits.
Comprehensive auto coverage
Comprehensive insurance coverage pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You need to pay your deductible first then your comprehensive coverage will pay.
Comprehensive can pay for claims such as hitting a deer, fire damage, a tree branch falling on your vehicle, vandalism and damage from flooding. The maximum payout your car insurance company will pay is the ACV or actual cash value, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.
This pays for damage to your Neon resulting from a collision with another car or object. A deductible applies then your collision coverage will kick in.
Collision coverage pays for claims such as damaging your car on a curb, sideswiping another vehicle and colliding with a tree. Collision is rather expensive coverage, so consider dropping it from lower value vehicles. Another option is to bump up the deductible to bring the cost down.
Liability auto insurance
This provides protection from damage or injury you incur to people or other property in an accident. This coverage protects you against other people’s claims. Liability doesn’t cover damage sustained by your vehicle in an accident.
It consists of three limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You might see liability limits of 100/300/100 that translate to $100,000 in coverage for each person’s injuries, $300,000 for the entire accident, and property damage coverage for $100,000. Alternatively, you may have one limit called combined single limit (CSL) which provides one coverage limit and claims can be made without the split limit restrictions.
Liability insurance covers things like repair costs for stationary objects, emergency aid and medical services. How much coverage you buy is up to you, but consider buying as high a limit as you can afford.
The cheapest 1998 Dodge Neon insurance is available from both online companies and also from your neighborhood agents, and you need to price shop both in order to have the best chance of saving money. Some insurance providers do not provide online quoting and these smaller providers only sell through local independent agents.
In this article, we covered a lot of information how to shop for 1998 Dodge Neon insurance online. The most important thing to understand is the more price quotes you have, the better your comparison will be. You may even discover the lowest priced car insurance comes from some of the lesser-known companies. Some small companies often have lower auto insurance rates on specific markets than their larger competitors like Progressive or GEICO.