Being forced to pay for high-priced insurance coverage premiums can draw down your personal savings and force you to tighten up your finances. Shopping your coverage around can be a smart way to lower your monthly bill.
There is such a variety of auto insurance companies to buy insurance from, and even though it’s nice to have a selection, too many choices makes it more difficult to find the best rates.
Some insurers don’t always publicize all their discounts very well, so we break down a few of the more common and the more hidden discounts that you may qualify for. If you’re not getting every credit available, you may be paying too high a price.
Drivers should understand that most of the big mark downs will not be given to the overall cost of the policy. Some only apply to specific coverage prices like comprehensive or collision. So when the math indicates you would end up receiving a 100% discount, it doesn’t quite work that way. But any discount will positively reduce the amount you have to pay.
To view insurers that offer many of these discounts, click here to view.
Many things are used when pricing auto insurance. Some are pretty understandable like your driving record, but some are less apparent like your vehicle usage or your vehicle rating.
Listed below are a few of the things that factor into premiums.
When buying proper insurance coverage for your personal vehicles, there is no best way to insure your cars. Every insured’s situation is different so your insurance should reflect that For example, these questions could help you determine whether your personal situation would benefit from an agent’s advice.
If it’s difficult to answer those questions but you know they apply to you, then you may want to think about talking to a licensed insurance agent. If you want to speak to an agent in your area, fill out this quick form or you can go here for a list of companies in your area.
Having a good grasp of your policy aids in choosing the right coverages and proper limits and deductibles. Policy terminology can be confusing and reading a policy is terribly boring. Below you’ll find the normal coverages offered by car insurance companies.
Med pay and Personal Injury Protection (PIP)
Coverage for medical payments and/or PIP provide coverage for expenses for things like X-ray expenses, chiropractic care, rehabilitation expenses, funeral costs and doctor visits. They are often used in conjunction with a health insurance policy or if you lack health insurance entirely. It covers you and your occupants as well as any family member struck as a pedestrian. PIP is not available in all states but it provides additional coverages not offered by medical payments coverage
Uninsured/Underinsured Motorist (UM/UIM)
Uninsured or Underinsured Motorist coverage gives you protection from other motorists when they are uninsured or don’t have enough coverage. Covered losses include injuries to you and your family as well as damage to your Lexus SC 400.
Since a lot of drivers only carry the minimum required liability limits, it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is a good idea. Frequently these coverages are similar to your liability insurance amounts.
Comprehensive insurance pays to fix your vehicle from damage OTHER than collision with another vehicle or object. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage pays for claims such as vandalism, hitting a bird and damage from flooding. The most your car insurance company will pay is the market value of your vehicle, so if it’s not worth much more than your deductible consider dropping full coverage.
This will cover damage that occurs to a person or their property. This insurance protects YOU against claims from other people, and doesn’t cover damage to your own property or vehicle.
Liability coverage has three 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 which means $50,000 bodily injury coverage, a per accident bodily injury limit of $100,000, and a total limit of $50,000 for damage to vehicles and property. Another option is a combined limit which combines the three limits into one amount with no separate limits for injury or property damage.
Liability insurance covers claims like structural damage, medical services, loss of income and emergency aid. How much liability should you purchase? That is your choice, but you should buy as high a limit as you can afford.
Collision coverage pays to fix your vehicle from damage resulting from a collision with another vehicle or an object, but not an animal. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision can pay for things like damaging your car on a curb, driving through your garage door, crashing into a ditch and hitting a parking meter. Collision coverage makes up a good portion of your premium, so you might think about dropping it from vehicles that are 8 years or older. Drivers also have the option to bump up the deductible to save money on collision insurance.
As you quote auto insurance, it’s not a good idea to reduce coverage to reduce premium. There are too many instances where an insured cut collision coverage only to regret at claim time that the small savings ended up costing them much more. The aim is to get the best coverage possible at an affordable rate.
A few companies don’t offer the ability to get a quote online regional carriers work with independent insurance agents. Lower-priced car insurance can be purchased both online and with local insurance agents, and you should compare price quotes from both so you have a total pricing picture.
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