Are you tired of sacrificing other expenses to pay insurance coverage each month? You have the same problem as most other people.
People have multiple car insurance companies to purchase coverage from, and even though it’s nice to have multiple companies, lots of choices makes it harder to compare company pricing.
It’s important that you understand the different types of things that aid in calculating your insurance coverage rates. If you understand what positively or negatively impacts your premiums, this helps enable you to make changes that can help you get cheaper rates.
Shown below are a few of the “ingredients” utilized by car insurance companies to help set your prices.
Companies offering auto insurance don’t always advertise every discount very well, so the list below details some of the more common and also the more inconspicuous auto insurance savings.
You should keep in mind that some credits don’t apply the the whole policy. A few only apply to individual premiums such as liability and collision coverage. Even though it may seem like it’s possible to get free car insurance, it doesn’t quite work that way.
To choose insurers with the best auto insurance discounts, click here.
Respected companies like Allstate and Progressive continually stream ads on television and other media. All the companies advertise the message of big savings just by switching your coverage. How does each company charge you a lower premium? Here is how they do it.
Car insurance companies have strict underwriting profiles for the driver that earns them the most money. One example of a desirable risk should be between the ages of 30 and 50, has a clear driving record, and has great credit. Someone who fits those characteristics will qualify for the lowest prices and is almost guaranteed to cut their rates if they switch.
Consumers who cannot meet the requirements will be quoted higher prices which results in the customer buying from someone else. The ads say “drivers who switch” not “everybody who quotes” will save that much if they switch. This is how insurance companies can confidently claim big savings.
Because each company has a different risk profile, you really should compare many company’s prices. It is impossible to predict which insurance companies will fit your personal profile best.
When buying proper insurance coverage, there isn’t really a single plan that fits everyone. Coverage needs to be tailored to your specific needs so this has to be addressed. Here are some questions about coverages that might help in determining whether you will benefit from professional help.
If you can’t answer these questions but you think they might apply to your situation, then you may want to think about talking to an insurance agent. If you don’t have a local agent, fill out this quick form or go to this page to view a list of companies.
Knowing the specifics of insurance can be of help when determining the best coverages for your vehicles. Policy terminology can be ambiguous and coverage can change by endorsement. Shown next are typical coverages available from insurance companies.
Collision – Collision insurance will pay to fix damage to your Malibu Maxx resulting from a collision with another car or object. You will need to pay your deductible and then insurance will cover the remainder.
Collision coverage pays for claims such as colliding with another moving vehicle, sideswiping another vehicle and scraping a guard rail. This coverage can be expensive, so you might think about dropping it from lower value vehicles. Another option is to raise the deductible in order to get cheaper collision rates.
Medical costs insurance – Personal Injury Protection (PIP) and medical payments coverage kick in for short-term medical expenses for things like surgery, pain medications, prosthetic devices, ambulance fees and X-ray expenses. They can be used in conjunction with a health insurance policy or if you are not covered by health insurance. It covers you and your occupants and also covers any family member struck as a pedestrian. Personal Injury Protection is not an option in every state but can be used in place of medical payments coverage
Liability – Liability insurance protects you from damages or injuries you inflict on people or other property that is your fault. This coverage protects you against claims from other people. It does not cover your own vehicle damage or injuries.
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 limits of 25/50/25 which means $25,000 bodily injury coverage, a total of $50,000 of bodily injury coverage per accident, and $25,000 of coverage for damaged propery. Some companies may use one number which is a combined single limit which limits claims to one amount rather than limiting it on a per person basis.
Liability insurance covers claims like structural damage, attorney fees and court costs. The amount of liability coverage you purchase is up to you, but you should buy as high a limit as you can afford.
UM/UIM Coverage – Your UM/UIM coverage gives you protection when other motorists are uninsured or don’t have enough coverage. Covered losses include hospital bills for your injuries as well as your vehicle’s damage.
Due to the fact that many drivers only purchase the least amount of liability that is required, it doesn’t take a major accident to exceed their coverage limits. That’s why carrying high Uninsured/Underinsured Motorist coverage should not be overlooked. Most of the time the UM/UIM limits are similar to your liability insurance amounts.
Comprehensive or Other Than Collision – Comprehensive insurance coverage covers damage that is not covered by collision coverage. You first have to pay a deductible then your comprehensive coverage will pay.
Comprehensive coverage pays for things like hitting a bird, falling objects, damage from getting keyed and rock chips in glass. The highest amount you can receive from a comprehensive claim is the actual cash value, so if the vehicle’s value is low consider dropping full coverage.
Lower-priced auto insurance is definitely available online in addition to local insurance agencies, and you need to comparison shop both so you have a total pricing picture. Some insurance companies do not offer rate quotes online and these smaller companies work with independent insurance agents.
We covered a lot of ways to reduce 2006 Chevy Malibu Maxx insurance prices online. The key thing to remember is the more rate quotes you have, the more likely it is that you will get a better rate. You may even discover the lowest prices come from the smaller companies. Some small companies may have significantly lower rates on certain market segments than the large multi-state companies such as State Farm, GEICO and Nationwide.