2006 GMC Sierra 2500HD Insurance Rates – 5 Tips to Save

No one in their right mind anticipates paying for car insurance, especially when they are paying too much.

Since you have so many options, it can be challenging to choose the lowest price insurer.

The purpose of this post is to familiarize you with how car insurance quotes work and some tips to save money. If you currently have a car insurance policy, you will be able to lower your premiums substantially using these methods. Nevertheless, consumers benefit from understanding how companies sell insurance online and apply this information to your search.

How much does insurance cost?

Most of the larger companies such as Progressive, Allstate and Geico give coverage price quotes on their websites. Comparing rates online is quite simple because it’s just a matter of typing in as requested by the quote form. Once entered, the system orders your driving record and credit report and returns a price based on these factors. This makes it simple to compare prices but the time required to go to a lot of sites and type in the same information is monotonous and tiresome. Unfortunately, it is important to have as many quotes as possible if you want to find the lowest insurance rates.

An easier way to get multiple rate quotes utilizes a single form that gets prices from more than one company. The form is fast, eliminates form submissions, and makes online price comparison much simpler. As soon as the form is sent, it is rated and you can choose your choice of the quotes returned.

If you find a better price you can simply submit the application and buy the new coverage. This process takes 15 minutes at the most and you will find out if you’re overpaying now.

If you want to find out if lower rates are available, simply click here to open in new window and enter your information. If you have coverage now, it’s recommended you replicate deductibles and limits identical to your current policy. This way, you are getting rate quotes for the exact same coverage.

Insurance coverage discounts help slash rates

Car insurance companies do not list all available discounts very clearly, so the list below details some of the best known and the more hidden credits that you can use to lower your rates.

• Active Service Discounts – Being on active deployment in the military could trigger a small discount.
• Driver Education Discount – Require your teen driver to complete a driver education course as it will make them better drivers and lower rates.
• Theft Deterent System – Anti-theft and alarm system equipped vehicles are stolen with less frequency and can earn a small discount on your policy.
• Full Payment Discount – By paying your entire bill at once instead of making monthly payments you may reduce your total bill.
• Discount for Passive Restraints – Options like air bags and/or automatic seat belt systems could see savings of 20 to 30 percent.

As a footnote on discounts, most discount credits are not given to the overall cost of the policy. Most only cut the cost of specific coverages such as liability, collision or medical payments. Even though it appears all those discounts means the company will pay you, you’re out of luck.

Companies and a selection of discounts are detailed below.

• 21st Century policyholders can earn discounts including homeowners, 55 and older, anti-lock brakes, early bird, student driver, teen driver, and defensive driver.
• Progressive offers premium reductions for continuous coverage, online signing, good student, multi-vehicle, and multi-policy.
• State Farm has discounts for defensive driving training, Steer Clear safe driver discount, multiple policy, anti-theft, multiple autos, driver’s education, and accident-free.
• Nationwide includes discounts for multi-policy, anti-theft, accident-free, Farm Bureau membership, defensive driving, and family plan.
• Esurance offers discounts for homeowner, anti-theft, good driver, multi-car, good student, online shopper, and claim free.
• The Hartford may have discounts that include driver training, good student, vehicle fuel type, anti-theft, and defensive driver.

When quoting, ask all the companies to apply every possible discount. Some discounts listed above might not be offered in your state. If you would like to view providers that provide some of the discounts listed above, click here.

Which is the best auto insurance?

When it comes to choosing the right insurance coverage, there isn’t really a single plan that fits everyone. Coverage needs to be tailored to your specific needs and your policy should reflect that. Here are some questions about coverages that may help highlight if you could use an agent’s help.

• What exactly is covered by my policy?
• Am I covered when driving in Canada or Mexico?
• Do I need PIP (personal injury protection) coverage in my state?
• Should I waive the damage coverage when renting a car?
• How high should my uninsured/underinsured coverage be in my state?
• Am I covered if I drive in a foreign country?

If it’s difficult to answer those questions, then you may want to think about talking to an agent. If you don’t have a local agent, take a second and complete this form or click here for a list of auto insurance companies in your area.

But they said I’d save $405 a year!

Insurance providers like Progressive, Allstate and Geico continually stream ads on TV and radio. All the companies convey the message about saving some big amount just by moving your insurance policy to them. That’s great but how can every company make almost identical claims?

Most companies have a preferred profile for the type of customer that will generate a profit. For example, a desirable risk could be a mature driver, has never had a claim, and drives a vehicle with a low ISO rating. A customer who matches those parameters is entitled to the best price and have a good chance to save when they switch companies.

Potential insureds who are not a match for this stringent profile will be charged higher premium rates and ends up with the driver buying from a lower-cost company. If you listen closely, the ads state “drivers that switch” not “all people who quote” can save as much as they claim. That’s why insurance companies can lure you into getting a quote.

Different companies use different criteria so drivers should compare as many free car insurance quotes as you can. You cannot predict which insurance companies will have the best prices at this point in time.

Car insurance 101

Learning about specific coverages of your car insurance policy can help you determine which coverages you need and proper limits and deductibles. Policy terminology can be impossible to understand and coverage can change by endorsement. These are typical coverages offered by car insurance companies.

Coverage for collisions

Collision coverage will pay to fix damage to your Sierra 2500HD caused by collision with a stationary object or other vehicle. You first must pay a deductible then the remaining damage will be paid by your insurance company.

Collision insurance covers things such as colliding with a tree, crashing into a building, driving through your garage door and damaging your car on a curb. Collision is rather expensive coverage, so analyze the benefit of dropping coverage from vehicles that are 8 years or older. It’s also possible to increase the deductible to bring the cost down.

Medical payments coverage and PIP

Medical payments and Personal Injury Protection insurance reimburse you for short-term medical expenses for X-ray expenses, ambulance fees, prosthetic devices and rehabilitation expenses. They are used to fill the gap from your health insurance policy or if there is no health insurance coverage. They cover not only the driver but also the vehicle occupants in addition to getting struck while a pedestrian. PIP coverage is only offered in select states and gives slightly broader coverage than med pay

Uninsured/Underinsured Motorist coverage

Your UM/UIM coverage gives you protection when the “other guys” do not carry enough liability coverage. This coverage pays for injuries to you and your family and damage to your GMC Sierra 2500HD.

Since many drivers have only the minimum liability required by law, their limits can quickly be used up. This is the reason having UM/UIM coverage is important protection for you and your family. Usually your uninsured/underinsured motorist coverages do not exceed the liability coverage limits.

Liability car insurance

This will cover damage that occurs to a person or their property that is your fault. This coverage protects you from claims by other people, and does not provide coverage for damage to your own property or vehicle.

Split limit liability has three limits of coverage: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. As an example, you may have values of 100/300/100 which means $100,000 in coverage for each person’s injuries, a total of $300,000 of bodily injury coverage per accident, and a limit of $100,000 paid for damaged property. Another option is one number which is a combined single limit which limits claims to one amount without having the split limit caps.

Liability can pay for claims such as pain and suffering, medical expenses, loss of income and repair bills for other people’s vehicles. How much liability should you purchase? That is up to you, but buy higher limits if possible.

Comprehensive coverage

Comprehensive insurance coverage will pay to fix damage from a wide range of events other than collision. A deductible will apply then your comprehensive coverage will pay.

Comprehensive insurance covers claims such as fire damage, a tree branch falling on your vehicle and falling objects. The maximum payout a car insurance company will pay at claim time is the ACV or actual cash value, so if the vehicle is not worth much it’s probably time to drop comprehensive insurance.

A fool and his money are soon parted

As you prepare to switch companies, make sure you don’t skimp on coverage in order to save money. There are too many instances where someone sacrificed liability coverage limits only to find out they didn’t have enough coverage. Your focus should be to buy enough coverage at the best possible price while still protecting your assets.

Budget-conscious 2006 GMC Sierra 2500HD insurance is attainable both online as well as from insurance agents, and you need to price shop both so you have a total pricing picture. Some car insurance companies may not offer online rate quotes and most of the time these regional carriers sell through local independent agents.

Additional information

• Choosing a Car for Your Teen (State Farm)
• Who Has the Cheapest Wichita Auto Insurance for a GMC Sierra? (WichitaInsure.com)
• Auto Insurance Basics (Insurance Information Insitute)
• How to Avoid Common Accidents (State Farm)
• Can I Drive Legally without Insurance? (Insurance Information Insitute)