Are you irritated from robbing Peter to pay Paul to buy auto insurance? Your situation is no different than many other consumers. Lots of auto insurance companies contend for your business, so it’s not easy to compare every company to discover the definitive cheapest price
It’s a good habit to do rate comparisons every six months because auto insurance rates change regularly. Just because you found the lowest premium rates on X5 insurance a few years ago you may be paying too much now. Forget anything you know (or think you know) about auto insurance because you’re going to learn the best methods to properly buy coverages and cut your premium.
Companies that sell car insurance don’t always publicize every disount available in a way that’s easy to find, so we took the time to find both the well known and also the more inconspicuous credits available to bring down your rates.
Don’t be shocked that most of the big mark downs will not be given the the whole policy. Some only reduce specific coverage prices like physical damage coverage or medical payments. Despite the appearance that all those discounts means the company will pay you, you won’t be that lucky. But all discounts should help lower the cost of coverage.
Larger auto insurance companies and a selection of discounts can be read below.
When comparing rates, check with each insurance company which credits you are entitled to. Some discounts may not apply to policies in your area.
Consumers can’t get away from ads for insurance savings from the likes of State Farm, Allstate and GEICO. All the ads make an identical promise that drivers can save some big amount if you move your insurance policy to them.
How does each company have lower policy pricing? You have to listen carefully.
Companies quote their cheapest rates for the type of customer that earns them the most money. An example of a profitable customer could possibly be between the ages of 30 and 50, has a low-risk occupation, and drives a lower-performance vehicle. A customer that meets those criteria will get a cheap rate quote and will probably save quite a bit of money when switching.
Potential insureds who fall short of those criteria may receive higher prices and this results in the customer buying from a different company. If you listen closely, the ads state “customers that switch” not “all people who quote” save the amount stated. That’s why insurance companies can confidently advertise the savings. This illustrates why you should compare rate quotes every year. It’s just too difficult to predict with any certainty which company will have the lowest prices for your situation.
When buying adequate coverage, there isn’t really a “perfect” insurance plan. Each situation is unique and a cookie cutter policy won’t apply. For instance, these questions might help in determining whether or not you would benefit from an agent’s advice.
If you’re not sure about those questions but you think they might apply to your situation, you might consider talking to an agent. If you want to speak to an agent in your area, simply complete this short form or click here for a list of car insurance companies in your area. It’s fast, free and can provide invaluable advice.
Learning about specific coverages of a insurance policy aids in choosing which coverages you need and proper limits and deductibles. Insurance terms can be ambiguous and nobody wants to actually read their policy. These are typical coverages found on most insurance policies.
Medical expense insurance
Personal Injury Protection (PIP) and medical payments coverage kick in for bills for dental work, pain medications and rehabilitation expenses. They can be used to cover expenses not covered by your health insurance policy or if you are not covered by health insurance. Coverage applies to both the driver and occupants and also covers any family member struck as a pedestrian. Personal injury protection coverage is not universally available but it provides additional coverages not offered by medical payments coverage
Comprehensive (Other than Collision)
This pays for damage caused by mother nature, theft, vandalism and other events. A deductible will apply then your comprehensive coverage will pay.
Comprehensive coverage protects against claims such as fire damage, damage from getting keyed, damage from a tornado or hurricane, hitting a bird and damage from flooding. The most a insurance company will pay at claim time is the ACV or actual cash value, so if your deductible is as high as the vehicle’s value consider removing comprehensive coverage.
This will cover injuries or damage you cause to other people or property in an accident. It protects YOU against claims from other people, and doesn’t cover your injuries or vehicle damage.
Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. As an example, you may have limits of 50/100/50 that means you have a $50,000 limit per person for injuries, a total of $100,000 of bodily injury coverage per accident, and $50,000 of coverage for damaged propery.
Liability insurance covers claims like repair bills for other people’s vehicles, bail bonds and legal defense fees. How much coverage you buy is your choice, but consider buying higher limits if possible.
Collision insurance pays to fix your vehicle from damage resulting from colliding with another car or object. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision coverage pays for things such as driving through your garage door, damaging your car on a curb, crashing into a ditch and colliding with a tree. Collision coverage makes up a good portion of your premium, so analyze the benefit of dropping coverage from vehicles that are older. Drivers also have the option to bump up the deductible in order to get cheaper collision rates.
Protection from uninsured/underinsured drivers
Uninsured or Underinsured Motorist coverage protects you and your vehicle’s occupants when other motorists either have no liability insurance or not enough. Covered claims include injuries to you and your family as well as damage to your BMW X5.
Since a lot of drivers only carry the minimum required liability limits, it doesn’t take a major accident to exceed their coverage limits. That’s why carrying high Uninsured/Underinsured Motorist coverage is very important.
More affordable auto insurance can be bought from both online companies as well as from independent agents, so you should compare both to get a complete price analysis. Some insurance companies may not have online rate quotes and many times these regional carriers provide coverage only through local independent agents.
As you restructure your insurance plan, it’s very important that you do not sacrifice coverage to reduce premiums. In many cases, someone dropped uninsured motorist or liability limits to discover at claim time that a couple dollars of savings turned into a financial nightmare. Your goal is to get the best coverage possible for the lowest price, not the least amount of coverage.
Even more information can be read by following these links: