I can’t think of anyone who rejoices having to buy auto insurance, especially when they are aware that they are paying too much.
Big companies like State Farm and GEICO constantly bombard you with fancy advertisements and it can be hard to not get sucked in by the cute commercials and effectively compare rates to find the best deal.
If you currently have car insurance, you stand a good chance to be able to cut costs considerably using these techniques. Finding affordable coverage is not rocket science. Although drivers can benefit by having an understanding of how insurance companies compete online and use this information to your advantage.
Insurance can cost an arm and a leg, but you might find some hidden discounts that you may not even be aware of. Certain credits will be shown at the time of purchase, but some must be specifically requested prior to receiving the credit.
It’s important to note that most discount credits are not given to the overall cost of the policy. Most only cut the cost of specific coverages such as comprehensive or collision. So even though they make it sound like adding up those discounts means a free policy, you aren’t that lucky.
If you would like to view insurance companies that offer many of these discounts, click here to view.
When buying the best insurance coverage for your personal vehicles, there is no perfect coverage plan. Coverage needs to be tailored to your specific needs and your policy should reflect that. For example, these questions may help highlight whether your personal situation could use an agent’s help.
If you can’t answer these questions but one or more may apply to you, then you may want to think about talking to a licensed insurance agent. If you don’t have a local agent, complete this form or you can go here for a list of companies in your area.
Progressive, Allstate and GEICO constantly bombard you with ads on television and other media. All the ads make the point that you’ll save big if you switch your insurance coverage coverage to their company. How is it plausible that every one can give you a lower rate? This is the way they can do it.
All companies have specific criteria for the type of driver that earns them a profit. For instance, this type of driver might have to be between the ages of 40 and 55, has no driving citations, and the vehicle is rated for pleasure use. Someone who fits that profile receives the best car insurance rates and is almost guaranteed to save a lot if they switch.
Potential customers who don’t measure up to this stringent profile may be forced to pay higher premium rates and business going elsewhere. The trick is to say “people that switch” not “everyone who quotes” save the amount stated. That’s the way insurance companies can make the claims of big savings. This really illustrates why you need to compare as many free auto insurance quotes as you can. Because you never know which insurance coverage company will have the lowest prices for your situation.
Knowing the specifics of insurance aids in choosing which coverages you need and proper limits and deductibles. Insurance terms can be difficult to understand and even agents have difficulty translating policy wording. These are the normal coverages available from insurance companies.
Comprehensive coverage (or Other than Collision)
This pays to fix your vehicle from damage caused by mother nature, theft, vandalism and other events. You first must pay your deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for claims such as vandalism, rock chips in glass, theft, damage from getting keyed and hitting a bird. The most you can receive from a comprehensive claim is the cash value of the vehicle, so if it’s not worth much more than your deductible consider removing comprehensive coverage.
This coverage protects you from damage that occurs to a person or their property that is your fault. This insurance protects YOU against other people’s claims. It does not cover damage sustained by your vehicle in an accident.
It consists of three limits, bodily injury per person, bodily injury per accident and property damage. You commonly see values of 25/50/25 which stand for $25,000 in coverage for each person’s injuries, $50,000 for the entire accident, and property damage coverage for $25,000.
Liability insurance covers things like structural damage, funeral expenses and repair costs for stationary objects. How much liability should you purchase? That is a personal decision, but buy as much as you can afford.
Uninsured Motorist or Underinsured Motorist insurance
This gives you protection when the “other guys” either have no liability insurance or not enough. This coverage pays for hospital bills for your injuries as well as your vehicle’s damage.
Since many drivers carry very low liability coverage limits, their liability coverage can quickly be exhausted. For this reason, having high UM/UIM coverages is a good idea.
Insurance for medical payments
Med pay and PIP coverage provide coverage for short-term medical expenses for things like prosthetic devices, doctor visits, surgery, funeral costs and X-ray expenses. They are often utilized in addition to your health insurance plan or if you are not covered by health insurance. It covers not only the driver but also the vehicle occupants and will also cover any family member struck as a pedestrian. Personal injury protection coverage is only offered in select states but it provides additional coverages not offered by medical payments coverage
Collision coverage protection
Collision coverage covers damage to your Passat from colliding with another vehicle or an object, but not an animal. You first must pay a deductible and then insurance will cover the remainder.
Collision coverage protects against things like sustaining damage from a pot hole, sideswiping another vehicle, driving through your garage door and hitting a parking meter. Collision coverage makes up a good portion of your premium, so analyze the benefit of dropping coverage from older vehicles. It’s also possible to choose a higher deductible to bring the cost down.
When buying insurance coverage, it’s not a good idea to skimp on critical coverages to save a buck or two. There are a lot of situations where an insured cut liability limits or collision coverage to discover at claim time that it was a big error on their part. Your focus should be to purchase plenty of coverage at the best possible price while not skimping on critical coverages.
We just covered a lot of tips how to compare 2001 Volkswagen Passat insurance premium rates online. The key concept to understand is the more rate quotes you have, the better your chances of lowering your prices. You may even discover the lowest priced auto insurance comes from a small mutual company. These companies may have significantly lower prices on certain market segments as compared to the big name companies such as Allstate or State Farm.
A few companies may not have price quotes online and usually these regional insurance providers sell through local independent agents. More affordable auto insurance can be purchased from both online companies and also from your neighborhood agents, so you should be comparing quotes from both to have the best rate selection.
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