Trying to come up with a payment for overpriced insurance can overdraw your monthly budget and put the squeeze on your family’s finances. Comparing rates annually is recommended to lower your monthly bill.
Online insurance companies like GEICO, 21st Century and Progressive continually bombard you with ad campaigns and it is challenging if not impossible to not get sucked in by the cute commercials and effectively compare rates to find the best deal.
Multiple criteria are considered when you get a price on insurance. Some are obvious like your driving record, although some other factors are not as apparent such as your marital status and annual miles driven.Consumers need to have an understanding of some of the elements that play a part in calculating your policy premiums. If you have some idea of what impacts premium levels, this allows you to make good choices that could help you find big savings.
The following are some of the factors used by insurance companies to determine your prices.
Some providers don’t always list the entire discount list very clearly, so the list below details a few of the more well known and also the lesser-known credits available to you. If you are not receiving all the discounts you deserve, you could be paying more than you need to.
As a sidenote, some of the credits will not apply to your bottom line cost. A few only apply to the price of certain insurance coverages like collision or personal injury protection. Despite the appearance that adding up those discounts means a free policy, companies don’t profit that way. But all discounts will help reduce the cost of your policy.
Auto insurance companies who might offer some of the above discounts include:
If you need lower rates, check with every prospective company which discounts you qualify for. All car insurance discounts may not apply to policyholders in your area. If you would like to see a list of providers that offer discounts, click here.
Consumers can’t escape the ads that claim the best prices from the likes of Allstate and Progressive. They all seem to have a common claim that people will save after switching your coverage.
Is it even possible that every company can give you a better price? This is the trick they use.
Different companies provide the lowest rates for the right customer that will be a good risk. An example of a desirable risk could be over the age of 40, has few claims, and has a high credit rating. Any person who fits those characteristics may get the lowest rates and therefore will save if they switch.
Insureds who are not a match for this stringent profile must pay higher prices and business going elsewhere. If you pay attention, the ads say “drivers who switch” but not “everyone who gets a quote” save the amount stated. That’s why insurance companies can advertise the savings.
Each company has different criteria, so it is so important to do a price quote comparison at every renewal. It’s not possible to predict which company will have the lowest rates.
When it comes to buying the best car insurance coverage, there isn’t really a perfect coverage plan. Each situation is unique so your insurance should reflect that For instance, these questions might help in determining if your situation would benefit from an agent’s advice.
If you’re not sure about those questions but one or more may apply to you then you might want to talk to a licensed insurance agent. If you want to speak to an agent in your area, complete this form or you can go here for a list of companies in your area. It is quick, free and may give you better protection.
Knowing the specifics of your insurance policy aids in choosing the best coverages at the best deductibles and correct limits. The terms used in a policy can be confusing and even agents have difficulty translating policy wording. These are the normal coverages found on the average insurance policy.
This pays to fix your vehicle from damage resulting from colliding with another car or object. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision can pay for claims like crashing into a building, scraping a guard rail, driving through your garage door, sideswiping another vehicle and sustaining damage from a pot hole. Collision coverage makes up a good portion of your premium, so consider removing coverage from vehicles that are older. It’s also possible to choose a higher deductible in order to get cheaper collision rates.
Medical payments and Personal Injury Protection insurance provide coverage for expenses for things like prosthetic devices, doctor visits, chiropractic care and surgery. They can be used in conjunction with a health insurance policy or if there is no health insurance coverage. Coverage applies to you and your occupants and also covers any family member struck as a pedestrian. Personal injury protection coverage is not universally available and may carry a deductible
This protects you and your vehicle’s occupants from other motorists when they do not carry enough liability coverage. This coverage pays for injuries sustained by your vehicle’s occupants and also any damage incurred to your Ford Five Hundred.
Since a lot of drivers only purchase the least amount of liability that is required, their limits can quickly be used up. That’s why carrying high Uninsured/Underinsured Motorist coverage is very important. Normally your uninsured/underinsured motorist coverages do not exceed the liability coverage limits.
Comprehensive insurance pays for damage that is not covered by collision coverage. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things such as vandalism, fire damage and falling objects. The maximum amount your insurance company will pay is the actual cash value, so if the vehicle is not worth much consider removing comprehensive coverage.
This protects you from injuries or damage you cause to other’s property or people by causing an accident. It protects you from claims by other people, and doesn’t cover your injuries or vehicle damage.
Coverage consists of three different limits, per person bodily injury, per accident bodily injury, and a property damage limit. You commonly see policy limits of 100/300/100 which means $100,000 bodily injury coverage, a limit of $300,000 in injury protection per accident, and property damage coverage for $100,000. Some companies may use one number which is a combined single limit which provides one coverage limit rather than limiting it on a per person basis.
Liability can pay for things like pain and suffering, bail bonds and medical expenses. The amount of liability coverage you purchase is a personal decision, but you should buy as large an amount as possible.
When shopping online for auto insurance, don’t be tempted to buy poor coverage just to save money. There have been many cases where an insured dropped full coverage only to regret that the few dollars in savings costed them thousands. Your objective should be to purchase plenty of coverage at an affordable rate.
Lower-priced auto insurance can be purchased both online as well as from insurance agents, and you need to price shop both to have the best rate selection. There are still a few companies who may not provide online rate quotes and most of the time these smaller providers work with local independent agencies.
We just presented quite a bit of information on how to shop for 2013 Ford Five Hundred insurance online. The most important thing to understand is the more times you quote, the more likely it is that you will get a better rate. You may even discover the lowest premium rates are with the smaller companies. Smaller companies may only write in your state and offer lower prices as compared to the big name companies such as Allstate or State Farm.