Have you fallen victim to overpriced auto insurance? Trust us when we tell you there are many drivers thinking the same thing.
You have multiple car insurance companies to choose from, and though it is a good thing to be able to choose, it can be more challenging to compare rates and find the lowest cost auto insurance.
Lots of things are part of the equation when pricing auto insurance. Some are obvious like an MVR report, but other criteria are less obvious such as your credit history or your commute time.When buying insurance coverage it’s important to understand some of the factors that help calculate your policy premiums. If you know what determines premiums, this enables informed choices that may result in lower premium levels.
Shown below are a few of the things companies use to determine your prices.
The majority of larger companies provide prices for coverage direct online. Getting quotes doesn’t take much effort as all you need to do is type in the amount of coverage you want on the page. When the form is submitted, their system orders your credit score and driving record and generates a price. Quoting online makes comparing rates easy, but the work required to visit multiple sites and enter the same data into a form can be a bit repetitive. Unfortunately, it is important to compare as many rates as possible if you want to get better auto insurance pricing.
A less time-consuming method to find better auto insurance pricing uses one simple form to return rates from a lot of companies. The form is fast, requires much less work on your part, and makes quoting online much more efficient. After sending the form, it is rated and you are able to buy any or none of the returned quotes. If the quotes result in lower rates, it’s easy to complete the application and purchase the new policy. The whole process takes 15 minutes at the most and you’ll know if lower rates are available.
In order to use this form to compare rates, click here and submit your coverage information. If you currently have coverage, we recommend you type in the coverage information exactly as shown on your declarations page. This makes sure you will have a price comparison based on similar coverages.
Insuring your fleet can be pricey, but discounts can save money and there are some available that can help lower your rates. Many of these discounts will be applied automatically at the time of quoting, but a few must be manually applied before you will receive the discount. If you do not double check each discount you qualify for, you’re just leaving money on the table.
While discounts sound great, it’s important to understand that some of the credits will not apply to the entire policy premium. Most only reduce the cost of specific coverages such as comprehensive or collision. Even though it appears you could get a free insurance policy, companies don’t profit that way. But all discounts should help lower your premiums.
To see a list of companies that can offer you the previously mentioned discounts, click here to view.
When it comes to choosing the right insurance coverage for your personal vehicles, there is no single plan that fits everyone. Everyone’s needs are different and your policy should reflect that. For example, these questions can help discover if you will benefit from professional help.
If you’re not sure about those questions but one or more may apply to you, you may need to chat with an insurance agent. To find lower rates from a local agent, fill out this quick form or go to this page to view a list of companies.
Having a good grasp of your policy helps when choosing appropriate coverage and the correct deductibles and limits. Policy terminology can be ambiguous and nobody wants to actually read their policy. Shown next are the normal coverages offered by car insurance companies.
UM/UIM (Uninsured/Underinsured Motorist) coverage – Your UM/UIM coverage protects you and your vehicle from other drivers when they are uninsured or don’t have enough coverage. Covered losses include medical payments for you and your occupants and damage to your BMW 3 Series.
Since many 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.
Comprehensive auto coverage – This coverage will pay to fix damage caused by mother nature, theft, vandalism and other events. A deductible will apply then your comprehensive coverage will pay.
Comprehensive insurance covers things like fire damage, vandalism, hail damage, theft and a broken windshield. The maximum amount your car insurance company will pay is the cash value of the vehicle, so if the vehicle is not worth much consider removing comprehensive coverage.
Auto liability – Liability coverage will cover damages or injuries you inflict on a person or their property. It protects YOU against other people’s claims. It does not cover damage to your own property or vehicle.
Coverage consists of three different limits, per person bodily injury, per accident bodily injury, and a property damage limit. As an example, you may have policy limits of 50/100/50 that translate to a limit of $50,000 per injured person, a total of $100,000 of bodily injury coverage per accident, and property damage coverage for $50,000.
Liability insurance covers things like attorney fees, funeral expenses and structural damage. How much coverage you buy is your choice, but it’s cheap coverage so purchase as large an amount as possible.
Collision coverage – This pays for damage to your 3 Series resulting from colliding with another car or object. You have to pay a deductible and then insurance will cover the remainder.
Collision can pay for claims like rolling your car, hitting a mailbox, driving through your garage door and scraping a guard rail. Collision is rather expensive coverage, so analyze the benefit of dropping coverage from vehicles that are older. Another option is to raise the deductible to get cheaper collision coverage.
Medical payments and PIP coverage – Personal Injury Protection (PIP) and medical payments coverage provide coverage for bills for things like chiropractic care, rehabilitation expenses, EMT expenses, prosthetic devices and nursing services. They are often 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 and also covers any family member struck as a pedestrian. PIP is only offered in select states and gives slightly broader coverage than med pay
When you buy car insurance online, never buy poor coverage just to save money. There have been many cases where an accident victim reduced uninsured motorist or liability limits only to regret at claim time they didn’t purchase enough coverage. Your objective should be to buy enough coverage for the lowest price, but don’t skip important coverages to save money.
Lower-priced insurance is possible on the web and from local agencies, and you need to comparison shop both to have the best chance of lowering rates. Some insurance companies do not provide the ability to get quotes online and usually these regional carriers sell through independent agents.