Have you fallen victim to an expensive car insurance policy? You’re preaching to the choir because many consumers feel financially strained by their car insurance policy.
Many insurers vie for your insurance dollar, so it can be very hard to choose a insurer to find the absolute lowest price
You should make it a habit to get comparison quotes once or twice a year because prices fluctuate regularly. Just because you had the best rates for RSX coverage six months ago a different company probably has better premium rates today. You can search a lot of car insurance online, but you can learn some tested techniques to lower your car insurance premiums.
There are several ways you can shop for insurance but one way is more efficient than others. You could waste a few hours discussing policy coverages with local insurance agents in your area, or you could use online quoting to get rate comparisons in just a few minutes.
Most of the larger companies enroll in a system that allows shoppers to only type in their quote data once, and at least one company can give them a price. This system prevents you from having to do quote forms to every company. To access this free quoting program, click to open in new window.
One minor caviat to pricing coverage this way is that consumers can’t choose which insurance companies to receive prices from. If you prefer to choose individual companies to receive pricing from, we have a listing of the cheapest insurance companies in your area. Click here for list of insurance companies.
You can choose any of those ways to find more affodable coverage, but ensure you’re using nearly identical information for each price quote. If you compare mixed coverages it will be next to impossible to get a fair rate comparison. Just a small difference in insurance coverages could throw off the whole comparison. It’s important to know that comparing a wide range of rates provides better odds of finding more affordable insurance.
The cost of insuring your cars can be expensive, but discounts can save money and there are some available that could drop your premiums quite a bit. Some of these disounts will be visible when you quote, but occassionally some discounts must be specially asked for before they will apply.
It’s important to understand that most of the big mark downs will not be given to the entire policy premium. Most only cut individual premiums such as liability, collision or medical payments. Even though the math looks like all the discounts add up to a free policy, companies don’t profit that way.
For a list of companies with significant discounts, click here to view.
When choosing proper insurance coverage, there really is not a best way to insure your cars. Every insured’s situation is different so this has to be addressed. For instance, these questions can help discover whether your personal situation could use an agent’s help.
If you’re not sure about those questions, then you may want to think about talking to a licensed insurance agent. To find lower rates from a local agent, fill out this quick form or you can go here for a list of companies in your area.
Understanding the coverages of insurance can be of help when determining the best coverages at the best deductibles and correct limits. The terms used in a policy can be ambiguous and coverage can change by endorsement. Listed below are the usual coverages offered by insurance companies.
Liability car insurance
Liability coverage can cover damages or injuries you inflict on people or other property that is your fault. It protects YOU from legal claims by others. Liability doesn’t cover damage to your own property or vehicle.
Split limit liability has three limits of coverage: bodily injury per person, bodily injury per accident and property damage. You might see values of 25/50/25 that translate to a limit of $25,000 per injured person, a limit of $50,000 in injury protection per accident, and a limit of $25,000 paid for damaged property. Occasionally you may see a combined single limit or CSL which provides one coverage limit rather than limiting it on a per person basis.
Liability coverage protects against claims such as funeral expenses, loss of income, legal defense fees and structural damage. The amount of liability coverage you purchase is a decision to put some thought into, but it’s cheap coverage so purchase as high a limit as you can afford.
Collision coverage pays to fix your vehicle from damage caused by collision with a stationary object or other vehicle. A deductible applies and the rest of the damage will be paid by collision coverage.
Collision can pay for things like sideswiping another vehicle, hitting a parking meter, crashing into a building and damaging your car on a curb. This coverage can be expensive, so consider removing coverage from older vehicles. Another option is to choose a higher deductible to save money on collision insurance.
Comprehensive coverage (or Other than Collision)
This coverage pays for 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 insurance covers claims like falling objects, damage from flooding, rock chips in glass and damage from getting keyed. The highest amount a insurance company will pay at claim time is the actual cash value, so if your deductible is as high as the vehicle’s value it’s not worth carrying full coverage.
Uninsured Motorist or Underinsured Motorist insurance
This provides protection when other motorists are uninsured or don’t have enough coverage. Covered losses include injuries to you and your family as well as damage to your 2004 Acura RSX.
Since many drivers only carry the minimum required liability limits, their liability coverage can quickly be exhausted. This is the reason having UM/UIM coverage should not be overlooked. Normally these limits are similar to your liability insurance amounts.
Insurance for medical payments
Medical payments and Personal Injury Protection insurance kick in for short-term medical expenses like nursing services, ambulance fees, X-ray expenses, chiropractic care and rehabilitation expenses. They can be used to fill the gap from your health insurance policy or if you lack health insurance entirely. They cover not only the driver but also the vehicle occupants as well as if you are hit as a while walking down the street. Personal injury protection coverage is not universally available but can be used in place of medical payments coverage
As you shop your coverage around, it’s very important that you do not sacrifice coverage to reduce premiums. There are many occasions where someone sacrificed liability coverage limits to discover at claim time that it was a big error on their part. Your aim should be to get the best coverage possible at a price you can afford while not skimping on critical coverages.
Some car insurance companies may not have the ability to get a quote online and most of the time these smaller companies only sell coverage through independent agencies. More affordable car insurance is possible both online as well as from independent agents, so compare prices from both to have the best chance of lowering rates.
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