I doubt anyone looks forward to buying auto insurance, especially when they are aware that their premiums are too high.
Companies like GEICO, Farmers Insurance and State Farm promote their brand names with fancy advertisements and it can be hard to ignore the promise of big savings and effectively compare rates to find the best deal.
Some companies don’t necessarily list every possible discount in an easy-to-find place, so we break down some of the best known and also the lesser-known credits available to lower your premiums when you buy insurance online.
While discounts sound great, it’s important to understand that many deductions do not apply to your bottom line cost. Most cut individual premiums such as collision or personal injury protection. So even though they make it sound like you would end up receiving a 100% discount, it’s just not the way it works.
The best auto insurance companies and a partial list of their discounts are:
Double check with each insurance company how many discounts you can get. Some discounts may not apply in every state. If you would like to view providers that provide some of the discounts listed above, click here to view.
When it comes to choosing the right insurance coverage, there isn’t really a “perfect” insurance plan. Coverage needs to be tailored to your specific needs and your policy should reflect that. For instance, these questions might point out if your insurance needs may require specific advice.
If you can’t answer these questions but a few of them apply then you might want to talk to an agent. To find an agent in your area, complete this form or click here for a list of car insurance companies in your area.
Companies like Allstate, GEICO and Progressive constantly bombard you with television and radio advertisements. They all seem to make the promise about how much you will save if you change your insurance coverage policy to them. How is it possible that every company can give you a lower rate?
Companies have specific guidelines for the type of insured that will be a good risk. An example of a profitable risk profile may be a married male, has never had a claim, and does not commute to work. A customer getting a price quote that hits that “sweet spot” may get the lowest prices and therefore will save if they switch.
Drivers who fall outside this stringent profile will be quoted higher premium rates and this can result in the customer buying from someone else. If you listen closely, the ads state “people who switch” but not “everyone who gets a quote” save that much when switching. That is how insurance companies can confidently make it sound like they have such great prices. This really drives home the point why you should quote coverage with many companies. It’s just too difficult to predict with any certainty which company will provide you with the cheapest premium rates.
Learning about specific coverages of your policy helps when choosing the right coverages at the best deductibles and correct limits. The coverage terms in a policy can be confusing and even agents have difficulty translating policy wording. Shown next are the usual coverages available from insurance companies.
Collision coverage covers damage to your F-150 caused by collision with an object or car. You have to pay a deductible and the rest of the damage will be paid by collision coverage.
Collision coverage protects against things like colliding with another moving vehicle, scraping a guard rail, crashing into a building and hitting a mailbox. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from vehicles that are older. You can also choose a higher deductible to bring the cost down.
Liability insurance can cover damage that occurs to a person or their property. Split limit liability has three limits of coverage: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. Your policy might show values of 25/50/25 which means $25,000 bodily injury coverage, $50,000 for the entire accident, and $25,000 of coverage for damaged propery.
Liability insurance covers claims such as pain and suffering, loss of income, funeral expenses and court costs. How much coverage you buy is up to you, but it’s cheap coverage so purchase higher limits if possible.
This coverage protects you and your vehicle’s occupants from other motorists when they either have no liability insurance or not enough. This coverage pays for injuries to you and your family and also any damage incurred to your Ford F-150.
Because many people carry very low liability coverage limits, it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is a good idea.
Personal Injury Protection (PIP) and medical payments coverage provide coverage for expenses such as EMT expenses, funeral costs, doctor visits and chiropractic care. They are often used in conjunction with a health insurance policy or if there is no health insurance coverage. It covers you and your occupants and will also cover any family member struck as a pedestrian. Personal Injury Protection is only offered in select states and may carry a deductible
Comprehensive insurance coverage covers damage OTHER than collision with another vehicle or object. You first must pay your deductible and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive can pay for claims such as rock chips in glass, a broken windshield, damage from a tornado or hurricane and hitting a bird. The highest amount you’ll receive from a claim is the market value of your vehicle, so if the vehicle is not worth much it’s not worth carrying full coverage.
As you shop your coverage around, it’s a bad idea to skimp on coverage in order to save money. In many instances, an insured cut physical damage coverage to discover at claim time that it was a big error on their part. The goal is to purchase plenty of coverage at the best possible price, but do not sacrifice coverage to save money.
More affordable insurance coverage can be sourced from both online companies and from local insurance agents, so you need to quote insurance with both to get a complete price analysis. There are still a few companies who may not offer rates over the internet and most of the time these smaller providers work with local independent agencies.