Trying to come up with a payment for overpriced auto insurance can consume your budget, especially in this economy. Doing a rate analysis can be a smart way to lower your bills every month.
There are many car insurance companies to buy insurance from, and although it’s a good thing to be able to choose, lots of choices makes it harder to compare rates and find the lowest cost auto insurance.
Auto insurance companies don’t always publicize all available discounts very well, so below is a list both well-publicized as well as the least known discounts that you can inquire about if you buy insurance coverage online. If you don’t get every credit you qualify for, you could be paying more than you need to.
Discounts lower rates, but most discount credits are not given to your bottom line cost. Most only apply to individual premiums such as liability, collision or medical payments. Even though the math looks like you would end up receiving a 100% discount, it just doesn’t work that way. But all discounts will definitely lower your policy premium.
Large insurance companies and a partial list of their discounts are:
Double check with each company which credits you are entitled to. Some of the earlier mentioned discounts might not be offered on policies in your area. To view insurance companies that offer multiple discounts, click here to view.
When choosing coverage, there isn’t really a cookie cutter policy. Everyone’s situation is a little different so your insurance needs to address that. Here are some questions about coverages that can help discover if your insurance needs might need an agent’s assistance.
If it’s difficult to answer those questions but you know they apply to you then you might want to talk to an agent. To find lower rates from a local agent, simply complete this short form or click here for a list of car insurance companies in your area. It’s fast, free and you can get the answers you need.
Learning about specific coverages of a car insurance policy can be of help when determining appropriate coverage and the correct deductibles and limits. The coverage terms in a policy can be confusing and nobody wants to actually read their policy. These are typical coverages found on the average car insurance policy.
Coverage for liability – Liability insurance provides protection from damages or injuries you inflict on other people or property that is your fault. It consists of three limits, per person bodily injury, per accident bodily injury, and a property damage limit. You commonly see limits of 25/50/25 that means you have $25,000 in coverage for each person’s injuries, a total of $50,000 of bodily injury coverage per accident, and $25,000 of coverage for damaged propery. Another option is a combined limit that pays claims from the same limit and claims can be made without the split limit restrictions.
Liability coverage pays for things like funeral expenses, court costs and medical expenses. How much liability should you purchase? That is up to you, but consider buying as high a limit as you can afford.
Collision coverage – This coverage will pay to fix damage to your Expedition caused by collision with an object or car. A deductible applies and then insurance will cover the remainder.
Collision can pay for things like scraping a guard rail, hitting a mailbox and crashing into a ditch. Collision coverage makes up a good portion of your premium, so consider removing coverage from older vehicles. Drivers also have the option to increase the deductible in order to get cheaper collision rates.
Medical payments coverage and PIP – Coverage for medical payments and/or PIP reimburse you for bills for things like X-ray expenses, funeral costs and chiropractic care. They are often used to fill the gap from your health insurance policy or if there is no health insurance coverage. Coverage applies to all vehicle occupants and also covers any family member struck as a pedestrian. Personal injury protection coverage is not universally available and gives slightly broader coverage than med pay
Comprehensive coverage – Comprehensive insurance will pay to fix damage caused by mother nature, theft, vandalism and other events. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for claims like damage from flooding, a tree branch falling on your vehicle, a broken windshield and theft. The highest amount you can receive from a comprehensive claim is the cash value of the vehicle, so if your deductible is as high as the vehicle’s value it’s not worth carrying full coverage.
Uninsured/Underinsured Motorist coverage – Uninsured or Underinsured Motorist coverage gives you protection when the “other guys” either are underinsured or have no liability coverage at all. It can pay for hospital bills for your injuries as well as your vehicle’s damage.
Since a lot of drivers carry very low liability coverage limits, their liability coverage can quickly be exhausted. This is the reason having UM/UIM coverage is very important. Frequently your uninsured/underinsured motorist coverages are similar to your liability insurance amounts.
More affordable insurance can be sourced from both online companies and from local insurance agents, so get free insurance coverage quotes from both of them to have the best chance of lowering rates. A few companies may not have rate quotes online and most of the time these small, regional companies prefer to sell through independent insurance agencies.
As you quote insurance coverage, do not skimp on coverage in order to save money. In many instances, someone dropped full coverage and found out when filing a claim that the savings was not a smart move. The proper strategy is to buy a smart amount of coverage for the lowest cost, but don’t skip important coverages to save money.
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