Being forced to pay for pricey auto insurance premiums can diminish your savings and possibly require postponing other expenditures. Online insurance companies like State Farm and GEICO continually hit you with fancy advertisements and it is challenging if not impossible to separate fact from fiction and do the work needed to find the best deal.
Some insurers do not advertise all disounts very well, so below is a list some of the more common and the more hidden credits available to you.
As a footnote on discounts, most discount credits are not given to your bottom line cost. The majority will only reduce the price of certain insurance coverages like liability, collision or medical payments. So when it seems like you could get a free auto insurance policy, you’re out of luck.
To locate auto insurance companies offering auto insurance discounts, click here.
The quickest method to compare insurance rates from multiple companies is to take advantage of the fact car insurance companies have advanced systems to compare rate quotes. All consumers are required to do is give them some information including if you have an active license, if you went to college, if you lease or own, and if you require a SR-22. Those rating factors is then submitted to multiple top-rated companies and they return quotes immediately.
An important part of buying insurance is that you know some of the elements that come into play when calculating the price you pay for auto insurance. When consumers understand what controls the rates you pay, this allows you to make good choices that could result in lower premium levels. Lots of factors are used when quoting car insurance. Some are pretty understandable like a motor vehicle report, but other factors are less apparent like your vehicle usage or your vehicle rating.
When it comes to buying coverage, there isn’t really a “perfect” insurance plan. Everyone’s needs are different so this has to be addressed. Here are some questions about coverages that can aid in determining whether you would benefit from professional advice.
If it’s difficult to answer those questions but you think they might apply to your situation, then you may want to think about talking to a licensed insurance agent. To find lower rates from a local agent, simply complete this short form or you can go here for a list of companies in your area. It is quick, free and may give you better protection.
Understanding the coverages of your auto insurance policy can be of help when determining appropriate coverage and the correct deductibles and limits. The coverage terms in a policy can be ambiguous and coverage can change by endorsement. Listed below are typical coverages available from auto insurance companies.
This coverage gives you protection from other motorists when they either have no liability insurance or not enough. Covered losses include hospital bills for your injuries as well as your vehicle’s damage.
Since many drivers only carry the minimum required liability limits, it only takes a small accident to exceed their coverage. That’s why carrying high Uninsured/Underinsured Motorist coverage is a good idea.
Medical payments and Personal Injury Protection insurance kick in for bills such as dental work, X-ray expenses, rehabilitation expenses, EMT expenses and doctor visits. They are used to fill the gap from your health insurance policy or if you lack health insurance entirely. They cover you and your occupants in addition to being hit by a car walking across the street. PIP is not an option in every state but can be used in place of medical payments coverage
This pays for damage from a wide range of events other than collision. A deductible will apply and then insurance will cover the rest of the damage.
Comprehensive coverage protects against claims such as damage from a tornado or hurricane, falling objects and a tree branch falling on your vehicle. The most your auto insurance company will pay is the market value of your vehicle, so if the vehicle is not worth much consider removing comprehensive coverage.
Collision coverage pays to fix your vehicle from damage resulting from a 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 such as hitting a parking meter, hitting a mailbox, rolling your car, damaging your car on a curb and backing into a parked car. This coverage can be expensive, so consider dropping it from vehicles that are 8 years or older. You can also raise the deductible to bring the cost down.
Liability coverage provides protection from damages or injuries you inflict on other people or property in an accident. It protects you from claims by other people, and does not provide coverage for your own vehicle damage or injuries.
It consists of three limits, per person bodily injury, per accident bodily injury, and a property damage limit. You might see policy limits of 25/50/25 that translate to $25,000 bodily injury coverage, a limit of $50,000 in injury protection per accident, and $25,000 of coverage for damaged propery.
Liability insurance covers things like repair bills for other people’s vehicles, structural damage, attorney fees, court costs and repair costs for stationary objects. The amount of liability coverage you purchase is a personal decision, but it’s cheap coverage so purchase as much as you can afford.
Some insurance providers may not provide internet price quotes and many times these regional insurance providers sell through independent agents. Cost effective 2012 Mercedes-Benz CLS-Class insurance can be sourced on the web in addition to local insurance agencies, so you should compare both in order to have the best chance of saving money.
When searching for low cost auto insurance quotes, you should never skimp on critical coverages to save a buck or two. In many cases, an insured cut liability coverage limits only to regret at claim time that their decision to reduce coverage ended up costing them more. The proper strategy is to purchase a proper amount of coverage at the best price, but don’t skip important coverages to save money.
More detailed auto insurance information can be found in these articles: