Wish you could get a refund on an overpriced car insurance policy? It’s a common feeling and many consumers are in the same pinch. Consumers have many car insurance companies to insure vehicles with, and although it’s a good thing to have multiple companies, too many choices makes it more difficult to find the lowest rates.
Many different elements are used in the calculation when pricing auto insurance. A few of the factors are predictable such as traffic violations, although some other factors are less obvious such as whether you are married or how safe your car is.
Shown below are some of the items companies use to determine your prices.
Some insurers do not list all disounts very well, so the list below gives a summary of some of the best known in addition to some of the lesser obvious car insurance savings. If you don’t get every credit available, you’re just leaving money on the table.
Policy discounts save money, but most discount credits are not given to the entire cost. Most cut the cost of specific coverages such as physical damage coverage or medical payments. So when the math indicates all the discounts add up to a free policy, companies don’t profit that way.
Larger car insurance companies and some of their more popular discounts can be found below.
It’s a good idea to ask every insurance company to give you their best rates. Some discounts listed above may not be available in your area. To locate insurance companies that offer discounts, click here.
Consumers can’t escape the ads that promise big savings for switching from the likes of GEICO, State Farm and Progressive. They all make the same claim that drivers will save a bundle if you just switch your policy.
It sounds good, but how can they all offer drivers better rates? It’s all in the wording.
Companies provide the lowest rates for the driver that makes them money. One example of a profitable customer may need to be between the ages of 40 and 55, has a clean driving record, and drives less than 5,000 miles a year. Any person who fits that profile gets the lowest premium rates and will probably save if they switch.
Potential customers who are not a match for the “perfect” profile may receive a more expensive rate and business not being written. The trick is to say “people who switch” not “everyone that quotes” save that much when switching. That is how companies can truthfully make those statements. This really drives home the point why it is so important to do a quote comparison often. Because without a comparison, you cannot know which insurance companies will have the lowest rates.
When choosing adequate coverage for your personal vehicles, there isn’t really a single plan that fits everyone. Every situation is different and a cookie cutter policy won’t apply. For example, these questions may help highlight if your insurance needs may require specific 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 an agent. To find lower rates from a local agent, simply complete this short form or click here for a list of auto insurance companies in your area. It only takes a few minutes and can help protect your family.
Understanding the coverages of insurance helps when choosing the best coverages and the correct deductibles and limits. Policy terminology can be ambiguous and coverage can change by endorsement. Listed below are typical coverage types found on most insurance policies.
Comprehensive (Other than Collision) – Comprehensive insurance coverage pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You need to pay your deductible first then your comprehensive coverage will pay.
Comprehensive insurance covers claims like damage from a tornado or hurricane, hitting a deer, theft and a tree branch falling on your vehicle. The maximum payout your insurance company will pay is the cash value of the vehicle, so if the vehicle’s value is low it’s probably time to drop comprehensive insurance.
Protection from uninsured/underinsured drivers – This coverage protects you and your vehicle’s occupants when the “other guys” either are underinsured or have no liability coverage at all. This coverage pays for medical payments for you and your occupants 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 very important.
Collision coverages – Collision coverage will pay to fix damage to your Bronco from colliding with another car or object. You first must pay a deductible then your collision coverage will kick in.
Collision coverage pays for claims like driving through your garage door, backing into a parked car, crashing into a ditch and hitting a parking meter. Collision coverage makes up a good portion of your premium, so you might think about dropping it from vehicles that are older. Drivers also have the option to increase the deductible to save money on collision insurance.
Liability car insurance – Liability insurance provides protection from damage or injury you incur to other’s property or people in an accident. It protects you from legal claims by others. Liability doesn’t cover damage sustained by your vehicle in an accident.
Coverage consists of three different limits, bodily injury per person, bodily injury per accident and property damage. Your policy might show policy limits of 25/50/25 which stand for $25,000 in coverage for each person’s injuries, a limit of $50,000 in injury protection per accident, and property damage coverage for $25,000.
Liability can pay for claims like structural damage, bail bonds, repair bills for other people’s vehicles and court costs. How much liability coverage do you need? That is a decision to put some thought into, but buy higher limits if possible.
Medical expense insurance – Personal Injury Protection (PIP) and medical payments coverage provide coverage for immediate expenses for things like hospital visits, dental work and ambulance fees. They are often used to cover expenses not covered by your health insurance plan or if you do not have health coverage. It covers you and your occupants in addition to if you are hit as a while walking down the street. Personal Injury Protection is not an option in every state but can be used in place of medical payments coverage
As you restructure your insurance plan, it’s not a good idea to sacrifice coverage to reduce premiums. There are many occasions where someone sacrificed uninsured motorist or liability limits and found out when filing a claim that saving that couple of dollars actually costed them tens of thousands. The goal is to purchase plenty of coverage at an affordable rate.
Throughout this article, we presented some good ideas how you can get a better price on 1995 Ford Bronco insurance. The key thing to remember is the more providers you compare, the better your comparison will be. You may be surprised to find that the lowest priced auto insurance comes from the least-expected company. Some small companies can often insure niche markets at a lower cost than the large multi-state companies such as Allstate or State Farm.
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