Cheaper 2011 BMW 1 Series Insurance Rates

As a disclaimer on discounts, most discounts do not apply the the whole policy. Some only reduce the price of certain insurance coverages like medical payments or collision. Even though it may seem like you can get free auto insurance, you aren’t that lucky. But all discounts will help lower the cost of your policy.

Car insurance companies that may offer some of the discounts shown above possibly include:

• Geico
• Travelers
• Nationwide
• Farmers Insurance
• Esurance
• State Farm
• Progressive
• Mercury Insurance

If you are trying to find cheap insurance quotes, ask each company which credits you are entitled to. All car insurance discounts may not apply to policyholders in your area.

The BMW 1 Series insurance premium equation

One of the most helpful ways to save on insurance is to to have a grasp of some of the elements that help calculate the price you pay for insurance. If you have a feel for what positively or negatively impacts your premiums, this helps enable you to make changes that may reward you with cheaper rates. Lots of things are used in the calculation when you get your auto insurance bill. Most are fairly basic such as traffic violations, although others are more obscure like where you live or how financially stable you are.

Shown below are some of the most common factors companies use to determine your rate level.

• Lower rates come with age – Mature drivers are more responsible, tend to cause fewer accidents .Beginning drivers have a tendency to get distracted easily when driving and because of this, their insurance rates are much higher.
• Vehicle theft costs us all – Driving a car with a theft deterrent system can save you a little every year. Anti-theft devices such as vehicle immobilizer systems, OnStar, and tracking devices like LoJack all help stop car theft.
• Cheaper rates after marriage – Your spouse may earn you lower rates on your insurance bill. Having a spouse means you’re more mature and responsible it has been statistically shown that married drivers tend to have fewer serious accidents.
• Keep prices low by being claim-free – Car insurance companies generally give discounts to drivers who are claim-free. If you file a lot of claims you can pretty much guarantee either policy cancellation or increased premiums. Auto insurance is meant to be used in the event of the bigger claims that can’t be paid out-of-pocket.
• Safer vehicles mean better prices – Cars with high safety ratings can get you lower premiums. Safe vehicles result in less severe injuries and any reduction in injury severity translates into fewer and smaller insurance claims and cheaper rates on your policy.
• Insurance policy lapses increase insurance rates – Having an insurance coverage lapse can be a guaranteed way to drive up your policy premiums. And not only will your rates increase, the inability to provide proof of insurance can result in fines or a revoked license.
• Why do you need liability coverage? – A critical coverage on your policy, liability insurance kicks in if you are ruled to be at fault for an accident. Your policy’s liability insurance provides legal defense coverage up to the limits shown on your policy. This coverage is very inexpensive as compared to coverage for physical damage, so drivers should make sure they buy enough to cover all assets.

Special considerations

When choosing coverage for your vehicles, there really is no perfect coverage plan. Everyone’s situation is a little different so this has to be addressed. These are some specific questions might help in determining if your situation could use an agent’s help.

• Does my personal policy cover me when driving out-of-state?
• How do I file an SR-22 for a DUI in my state?
• How much liability coverage do I need in my state?
• Should I drop comprehensive coverage on older vehicles?
• Should I have a commercial auto policy?
• What is covered by UM/UIM coverage?
• How many claims can I have before being cancelled?
• How do I buy GAP insurance?
• What is the rate difference between pleasure use and commuting?

If it’s difficult to answer those questions, you might consider talking to a licensed insurance agent. To find an agent in your area, take a second and complete this form or you can go here for a list of companies in your area. It’s fast, doesn’t cost anything and can help protect your family.

Are you falling for claims of savings?

Drivers can’t ignore all the ads for insurance coverage savings by Allstate and Progressive. All the ads have a common claim that you can save just by switching your coverage.

Is it even possible that every company can lower your premium rates? You have to listen carefully.

Most companies have specific characteristics for the type of customer that makes them money. For instance, a profitable customer might have to be between the ages of 30 and 45, has no claims, and does not commute to work. Anyone that hits that “sweet spot” will qualify for the lowest prices and as a result will probably cut their rates if they switch.

Potential insureds who are not a match for these standards will get a higher premium and the customer not buying. Company advertisements say “drivers who switch” not “everyone that quotes” save that much money. This is how insurance companies can make those claims. This emphasizes why you really need to do a price quote comparison at every renewal. It’s impossible to know which insurance coverage company will provide the lowest car insurance rates.

Car insurance policy specifics

Understanding the coverages of your policy aids in choosing the right coverages at the best deductibles and correct limits. Policy terminology can be difficult to understand and reading a policy is terribly boring. These are the usual coverages offered by car insurance companies.

Coverage for collisions

This coverage covers damage to your 1 Series resulting from a collision with another vehicle or an object, but not an animal. You have to pay a deductible and the rest of the damage will be paid by collision coverage.

Collision can pay for things such as damaging your car on a curb, crashing into a ditch, driving through your garage door and crashing into a building. Paying for collision coverage can be pricey, so you might think about dropping it from vehicles that are 8 years or older. Another option is to raise the deductible to save money on collision insurance.

Liability insurance

This protects you from damage that occurs to other people or property by causing an accident. It protects YOU against other people’s claims, and does not provide coverage for your own vehicle damage or injuries.

It consists of three limits, per person bodily injury, per accident bodily injury, and a property damage limit. You commonly see liability limits of 50/100/50 which stand for $50,000 bodily injury coverage, $100,000 for the entire accident, and a limit of $50,000 paid for damaged property.

Liability coverage pays for claims like bail bonds, pain and suffering, funeral expenses, emergency aid and repair bills for other people’s vehicles. How much coverage you buy is up to you, but consider buying higher limits if possible.

UM/UIM Coverage

This provides protection from other drivers when they are uninsured or don’t have enough coverage. Covered claims include injuries to you and your family as well as your vehicle’s damage.

Since a lot of drivers only carry the minimum required liability limits, their limits can quickly be used up. For this reason, having high UM/UIM coverages is very important.

Medical costs insurance

Coverage for medical payments and/or PIP pay for immediate expenses like hospital visits, EMT expenses, prosthetic devices and surgery. They are often utilized in addition to your health insurance plan or if you lack health insurance entirely. Coverage applies to you and your occupants and will also cover if you are hit as a while walking down the street. PIP coverage is not universally available but it provides additional coverages not offered by medical payments coverage

Comprehensive or Other Than Collision

This coverage pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You first must pay your deductible then your comprehensive coverage will pay.

Comprehensive insurance covers things like damage from getting keyed, damage from a tornado or hurricane, theft, damage from flooding and falling objects. The maximum amount a car insurance company will pay at claim time is the market value of your vehicle, so if your deductible is as high as the vehicle’s value it’s not worth carrying full coverage.

Summing up your insurance coverage search

While you’re price shopping online, never skimp on critical coverages to save a buck or two. There are too many instances where someone dropped collision coverage and learned later that a couple dollars of savings turned into a financial nightmare. Your goal is to get the best coverage possible at the best possible price, not the least amount of coverage.

Budget-conscious 2011 BMW 1 Series insurance is definitely available on the web and from local agencies, and you should compare rates from both to have the best rate selection. Some insurance companies may not provide online quoting and most of the time these small insurance companies only sell coverage through independent insurance agencies.

More resources

• Understanding Rental Car Insurance (Insurance Information Insitute)
• Auto Insurance 101 (About.com)
• Cellphones, Texting and Driving (iihs.org)
• Understanding your Policy (NAIC.org)