Drivers fed up with high insurance prices and are new to comparing insurance prices on the web could find purchasing low cost insurance is harder than it should be.
It’s a good idea to compare premium rates at least once a year because auto insurance prices trend upward over time. Even if you think you had the best rate for 300 insurance last year there is a good chance you can find better premium rates now. Block out anything you think you know about auto insurance because you’re about to learn the proper way to save money, get proper deductibles and limits, all at the lowest rate.
The best way to compare car insurance rates is to know most insurance companies participate in a system to provide you with free rate quotes. All you need to do is provide a small amount of information such as how old drivers are, if you have an active license, how much coverage you want, and if a SR-22 is needed. Your information is then sent to multiple companies and they respond with quotes very quickly.
Car insurance companies do not advertise all disounts very well, so the following is a list of both the well known as well as the least known savings tricks you should be using when you buy insurance online.
As a sidenote, many deductions do not apply to the entire cost. Most cut the cost of specific coverages such as liability, collision or medical payments. So even though they make it sound like all those discounts means the company will pay you, companies wouldn’t make money that way.
A few popular companies and a partial list of their discounts are included below.
Before buying, ask each insurance company how you can save money. Discounts might not be available to policyholders everywhere.
When it comes to buying coverage, there really is no cookie cutter policy. Every situation is different.
Here are some questions about coverages that might point out if your situation might need professional guidance.
If it’s difficult to answer those questions but one or more may apply to you, then you may want to think about talking to an agent. If you don’t have a local agent, simply complete this short form.
Knowing the specifics of your policy aids in choosing the right coverages and the correct deductibles and limits. Policy terminology can be difficult to understand and nobody wants to actually read their policy.
Medical payments coverage and PIP – Med pay and PIP coverage reimburse you for bills for things like chiropractic care, surgery, X-ray expenses, dental work and hospital visits. They are utilized in addition to your health insurance policy or if there is no health insurance coverage. Medical payments and PIP cover you and your occupants as well as being hit by a car walking across the street. Personal injury protection coverage is only offered in select states but it provides additional coverages not offered by medical payments coverage
Comprehensive coverage – This pays for damage that is not covered by collision coverage. You first must pay your deductible and then insurance will cover the rest of the damage.
Comprehensive insurance covers claims such as hitting a deer, rock chips in glass, damage from getting keyed, vandalism and hail damage. The highest amount you’ll receive from a claim is the cash value of the vehicle, so if the vehicle’s value is low consider removing comprehensive coverage.
Collision coverage – Collision coverage pays to fix your vehicle from damage resulting from colliding with a stationary object or other vehicle. You will need to pay your deductible and the rest of the damage will be paid by collision coverage.
Collision coverage protects against things such as rolling your car, backing into a parked car and colliding with another moving vehicle. Paying for collision coverage can be pricey, so consider removing coverage from lower value vehicles. It’s also possible to choose a higher deductible to save money on collision insurance.
Auto liability insurance – This coverage will cover injuries or damage you cause to other’s property or people in an accident. Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You commonly see limits of 100/300/100 that translate to $100,000 bodily injury coverage, a total of $300,000 of bodily injury coverage per accident, and $100,000 of coverage for damaged propery. Another option is one limit called combined single limit (CSL) which provides one coverage limit rather than limiting it on a per person basis.
Liability insurance covers things like loss of income, funeral expenses, emergency aid, repair bills for other people’s vehicles and structural damage. How much liability should you purchase? That is a decision to put some thought into, but buy as much as you can afford.
Uninsured/Underinsured Motorist coverage – Uninsured or Underinsured Motorist coverage gives you protection from other drivers when they either are underinsured or have no liability coverage at all. This coverage pays for injuries to you and your family as well as your vehicle’s damage.
Due to the fact that many drivers carry very low liability coverage limits, their limits can quickly be used up. For this reason, having high UM/UIM coverages is important protection for you and your family. Normally your uninsured/underinsured motorist coverages are similar to your liability insurance amounts.