Pretty sure you bought overpriced auto insurance? It’s a common feeling and you’re not alone.
You have so many auto insurance companies to insure vehicles with, and although it’s nice to have multiple companies, more choices can make it harder to compare rates.
Many things are taken into consideration when you get your auto insurance bill. Some are pretty understandable such as your driving record, although some other factors are not as apparent such as your marital status and annual miles driven.Smart consumers have a good feel for some of the things that go into determining the price you pay for car insurance. If you have some idea of what determines premiums, this enables informed choices that could help you find much lower annual insurance costs.
Auto insurance companies don’t list every available discount very well, so the list below contains some of the more common as well as some of the hidden credits available to bring down your rates.
Keep in mind that some credits don’t apply to the overall cost of the policy. Most only reduce the price of certain insurance coverages like comp or med pay. Even though it may seem like it’s possible to get free car insurance, nobody gets a free ride.
If you would like to choose from a list of companies that offer discounts, click here to view.
Big name companies like State Farm, Geico and Progressive constantly bombard you with television, radio, and online ads. They all try to convey promises of big savings if you get a free insurance coverage quote and switch your policy. But how can every company sell you cheaper insurance coverage? Here is how they do it.
Insurance companies have strict underwriting profiles for the type of customer that will most likely be profitable. For example, this type of risk profile could be over the age of 40, owns their home, and has a high credit rating. Someone who meets those qualifications will probably get the lowest rates as well as save if they switch.
Drivers who do not meet those criteria will be quoted higher premiums which leads to the customer buying from a different company. The trick is to say “customers who switch” but not “everyone who gets a quote” can get the lowest rates when switching. That’s the way companies can make claims like that.
This really emphasizes why drivers must get insurance coverage quotes from several different companies. It is just not possible to predict which company will have the lowest car insurance rates for your situation.
When choosing the best auto insurance coverage for your personal vehicles, there is no perfect coverage plan. Coverage needs to be tailored to your specific needs and a cookie cutter policy won’t apply. For example, these questions could help you determine whether you could use an agent’s help.
If you don’t know the answers to these questions but a few of them apply, you might consider talking to an insurance agent. If you don’t have a local agent, fill out this quick form or go to this page to view a list of companies.
Understanding the coverages of insurance helps when choosing the right coverages at the best deductibles and correct limits. Insurance terms can be ambiguous and even agents have difficulty translating policy wording. Below you’ll find the usual coverages found on the average insurance policy.
Uninsured Motorist or Underinsured Motorist insurance
Uninsured or Underinsured Motorist coverage protects you and your vehicle’s occupants from other motorists when they are uninsured or don’t have enough coverage. It can pay for hospital bills for your injuries and also any damage incurred to your Audi A8.
Since many drivers only carry the minimum required liability limits, their liability coverage can quickly be exhausted. So UM/UIM coverage should not be overlooked. Usually the UM/UIM limits do not exceed the liability coverage limits.
This coverage will pay to fix damage to your A8 from colliding with an object or car. You will need to pay your deductible and then insurance will cover the remainder.
Collision insurance covers claims such as colliding with another moving vehicle, crashing into a building, sideswiping another vehicle and rolling your car. Collision is rather expensive coverage, so consider dropping it from older vehicles. It’s also possible to increase the deductible to bring the cost down.
Insurance for medical payments
Coverage for medical payments and/or PIP reimburse you for immediate expenses for prosthetic devices, hospital visits, doctor visits, EMT expenses and funeral costs. The coverages can be used to cover expenses not covered by your health insurance policy or if there is no health insurance coverage. They cover you and your occupants and also covers getting struck while a pedestrian. Personal Injury Protection is not an option in every state but can be used in place of medical payments coverage
Liability insurance provides protection from damages or injuries you inflict on other’s property or people in an accident. It protects you from legal claims by others, and doesn’t cover your own vehicle damage or injuries.
Liability coverage has three limits: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. Your policy might show policy limits of 100/300/100 which stand for a limit of $100,000 per injured person, a total of $300,000 of bodily injury coverage per accident, and a total limit of $100,000 for damage to vehicles and property. Alternatively, you may have a combined single limit or CSL which provides one coverage limit with no separate limits for injury or property damage.
Liability coverage protects against things such as loss of income, structural damage and medical services. The amount of liability coverage you purchase is up to you, but you should buy as large an amount as possible.
Comprehensive coverage (or Other than Collision)
Comprehensive insurance pays for damage OTHER than collision with another vehicle or object. You need to pay your deductible first and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage protects against claims like theft, damage from flooding, a tree branch falling on your vehicle, a broken windshield and hitting a bird. The maximum payout your insurance company will pay is the actual cash value, so if your deductible is as high as the vehicle’s value it’s not worth carrying full coverage.
Some companies do not offer online price quotes and many times these smaller providers only sell through independent agents. Lower-priced insurance coverage is possible on the web and also from your neighborhood agents, so you need to compare both to have the best rate selection.
When buying insurance coverage, make sure you don’t reduce coverage to reduce premium. In many instances, consumers will sacrifice liability coverage limits and discovered at claim time that the few dollars in savings costed them thousands. The proper strategy is to get the best coverage possible for the lowest cost while still protecting your assets.
For more information, take a look at these articles:
In Aurora, CO, 21st Century auto insurance rates for my 2008 Audi A8 were good. Teenage drivers are expensive! It was easy to get rates.
2008 Audi A8 + Progressive = CHEAP! At least inMinnesota anyway.
Like your site, BTW. Proud to be from Concord, NH. Compared rates from a lot of places. Saved about $50 a month. Allstate was the cheapest option for me. Have an at-fault accident tho.
I’m in Green Bay, WI. Got quotes from GEICO, Hanover, and Erie for my 2008 Audi A8 and saved about $120 a year.
I’m in the north part of Fairbanks, AK. Got quotes from Amica, Esurance, and Mercury for my Audi and I’m now saving $15 a month.
Does State Farm have good customer service?
Will Allstate raise rates for a windshield claim?
I’m in the suburbs of Fairbanks, Alaska. Quoted with Progressive, Encompass, and GMAC for my A8 and saved just over $500 a year. Hopefully won’t need it. It never hurts to quote around.
If you have a good history and live around Allentown, PA, check out GEICO. You might save some money. Insured with Liberty Mutual before. They were helpful in switching over.
I got quite a few price quotes for a 2008 Audi A8 in Knoxville, TN. Ended up at about $340 every six months with American Family.
Like your site, BTW. I’m in the suburbs of Mobile, AL. Got car insurance prices from State Farm, AIG Insurance, and Esurance for my 2008 Audi A8 and I think I saved around $20 each month. Even increased my liability limits.
Got pretty cheap 2008 Audi A8 insurance from 21st Century in Nashville, TN.
Will State Farm do a SR22 in Charlotte, North Carolina?
Does 21st Century prorate premiums at cancellation?