No one in their right mind is fond of buying insurance coverage, in particular when they are paying too much.
Because you have many insurance providers from which to choose, it can be challenging to locate the right insurer.
Smart consumers have a good feel for some of the factors that help calculate your premiums. When you know what positively or negatively determines premiums, this helps enable you to make changes that could result in much lower annual insurance costs.
The itemized list below are just a few of the factors used by insurance companies to determine rates.
Some companies don’t always advertise every possible discount in an easy-to-find place, so we took the time to find some of the best known and also the more inconspicuous credits available to lower your premiums when you buy auto insurance online. If you do not double check each discount possible, you’re just leaving money on the table.
We need to note that most credits do not apply to your bottom line cost. Most cut specific coverage prices like physical damage coverage or medical payments. Even though it appears you could get a free auto insurance policy, it’s just not the way it works.
Auto insurance companies who may offer many of the previously listed discounts include:
When comparing rates, check with every insurance company which discounts you may be entitled to. Some of the discounts discussed earlier may not be available in your state. If you would like to view auto insurance companies that offer multiple discounts, click here.
Well-known insurance coverage companies like Progressive, GEICO, Allstate and State Farm regularly use ads on TV and radio. All the ads advertise claims about savings if you get a free auto insurance quote and switch your insurance coverage policy to them. But how can every company make almost identical claims? It’s all in how they say it.
All the different companies can use profiling for a prospective insured that earns them a profit. For instance, a desirable insured could possibly be a female over age 40, is a homeowner, and insures a new vehicle. Anybody that fits those parameters is entitled to the best price and as a result will probably save some money.
People who do not match these criteria may receive a higher rate with the end result being the customer not purchasing. If you listen to the ad wording, they say “customers who switch” not “everyone who quotes” save that much. That’s why insurance companies can confidently make claims like that. That is why drivers should compare free auto insurance quotes often. Because you never know which company will provide the lowest rates.
When it comes to choosing the best auto insurance coverage for your vehicles, there is no perfect coverage plan. Everyone’s situation is a little different and your policy should reflect that. These are some specific questions can aid in determining if your situation could use an agent’s help.
If you can’t answer these questions, then you may want to think about talking to a licensed agent. If you want to speak to an agent in your area, fill out this quick form or you can also visit this page to select a carrier
Learning about specific coverages of car insurance can help you determine the right coverages for your vehicles. Car insurance terms can be difficult to understand and even agents have difficulty translating policy wording. Shown next are typical coverage types found on most car insurance policies.
Collision insurance pays for damage to your Grand Cherokee caused by collision with an object or car. You first must pay a deductible then the remaining damage will be paid by your insurance company.
Collision can pay for claims like hitting a parking meter, rolling your car, scraping a guard rail, sustaining damage from a pot hole and crashing into a building. Paying for collision coverage can be pricey, so consider removing coverage from lower value vehicles. Drivers also have the option to choose a higher deductible in order to get cheaper collision rates.
Med pay and PIP coverage reimburse you for short-term medical expenses such as rehabilitation expenses, prosthetic devices, hospital visits, ambulance fees and pain medications. They can be used to fill the gap from your health insurance policy or if you do not have health coverage. Medical payments and PIP cover all vehicle occupants and will also cover getting struck while a pedestrian. Personal injury protection coverage is not available in all states but it provides additional coverages not offered by medical payments coverage
This provides protection when the “other guys” are uninsured or don’t have enough coverage. This coverage pays for hospital bills for your injuries as well as your vehicle’s damage.
Since many drivers carry very low liability coverage limits, it doesn’t take a major accident to exceed their coverage limits. This is the reason having UM/UIM coverage is important protection for you and your family.
This protects you from damages or injuries you inflict on people or other property in an accident. It protects you from legal claims by others. Liability doesn’t cover damage to your own property or vehicle.
Split limit liability has three limits of coverage: bodily injury per person, bodily injury per accident and property damage. You commonly see values of 50/100/50 which means $50,000 in coverage for each person’s injuries, a total of $100,000 of bodily injury coverage per accident, and $50,000 of coverage for damaged propery.
Liability coverage protects against claims such as medical expenses, legal defense fees and loss of income. How much liability should you purchase? That is up to you, but consider buying as large an amount as possible.
Comprehensive insurance will pay to fix damage that is not covered by collision coverage. You need to pay your deductible first then your comprehensive coverage will pay.
Comprehensive insurance covers things like falling objects, theft, fire damage, rock chips in glass and hitting a deer. The maximum amount your car insurance company will pay is the cash value of the vehicle, so if the vehicle’s value is low it’s not worth carrying full coverage.
A few companies may not have the ability to get a quote online and many times these regional carriers provide coverage only through local independent agencies. Budget-friendly insurance can be bought online as well as from insurance agents, so compare prices from both so you have a total pricing picture.
As you go through the steps to switch your coverage, make sure you don’t buy lower coverage limits just to save a few bucks. In many cases, an insured dropped liability coverage limits only to discover later they didn’t have enough coverage. Your aim should be to get the best coverage possible at an affordable rate, not the least amount of coverage.
More detailed insurance information can be found at these sites: