Car owners who are new to the process of buying auto insurance online are likely to find sourcing cheaper auto insurance to be a formidable task.
It is always a good idea to quote other rates before your policy renews because rates change quite often. Even if you think you had the lowest rate for A7 coverage at your last renewal a different company probably has better prices today. Ignore everything you know about car insurance because you’re going to get a crash course in the easiest way to lower your annual insurance bill.
Many different elements are taken into consideration when quoting car insurance. Most are fairly basic such as your driving record, but other factors are not quite as obvious like your continuous coverage or how safe your car is.
The following are a partial list of the pieces used by your company to calculate your rates.
Effectively comparing auto insurance prices can be exhausting if you don’t understand the easiest way. You can waste a few hours (or days) talking about coverages with insurance agencies in your area, or you could use the web to maximize your effort.
The majority of car insurance companies belong to an insurance system where prospective buyers enter their policy data once, and each participating company returns a rated price based on that data. This prevents consumers from doing quotation requests for each company.
To find out what other companies charge click here (opens in new window).
The only downside to comparing rates this way is you don’t know exactly the providers you want to price. If you would rather choose individual companies to compare prices, we put together a list of low cost auto insurance companies in your area. View list of insurance companies.
Compare rates however you want, just make sure you compare the same quote information on every price quote you get. If your comparisons have mixed coverages it will be next to impossible to make an equal comparison. Quoting even small variations in insurance coverages or limits can result in a big premium difference. Just remember that more quotes increases the change that you will find the best rates.
The price of auto insurance can be rather high, but there could be available discounts that you may not even know about. Larger premium reductions will be automatically applied when you get a quote, but a few must be specially asked for in order for you to get them. If you check and find you aren’t receiving every discount you qualify for, you could be saving more on your auto insurance.
One last thing about discounts, some of the credits will not apply to all coverage premiums. Most only cut individual premiums such as comp or med pay. If you do the math and it seems like all those discounts means the company will pay you, it just doesn’t work that way.
A list of companies and a partial list of their discounts can be read below.
When getting free auto insurance quotes, it’s a good idea to every insurance company which discounts they offer. Savings might not be offered on policies in your area. To see insurance companies that offer many of these discounts, click here to view.
When buying the right insurance coverage, there really is not a best way to insure your cars. Everyone’s situation is a little different.
For instance, these questions may help highlight whether you could use an agent’s help.
If it’s difficult to answer those questions, you may need to chat with a licensed agent. To find an agent in your area, fill out this quick form.
Knowing the specifics of insurance helps when choosing appropriate coverage and the correct deductibles and limits. Policy terminology can be ambiguous and even agents have difficulty translating policy wording.
Liability insurance – Liability coverage protects you from injuries or damage you cause to other’s property or people. It protects YOU against other people’s claims, and does not provide coverage for damage to your own property or vehicle.
Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You commonly see policy limits of 25/50/25 which means a $25,000 limit per person for injuries, a limit of $50,000 in injury protection per accident, and property damage coverage for $25,000. Alternatively, you may have a combined single limit or CSL which limits claims to one amount and claims can be made without the split limit restrictions.
Liability can pay for claims such as legal defense fees, loss of income, repair costs for stationary objects and medical services. The amount of liability coverage you purchase is a decision to put some thought into, but you should buy as high a limit as you can afford.
Comprehensive insurance – Comprehensive insurance coverage pays for damage that is not covered by collision coverage. You first have to pay a deductible then your comprehensive coverage will pay.
Comprehensive can pay for things such as falling objects, hail damage, a broken windshield, hitting a deer and damage from flooding. The maximum amount a insurance company will pay at claim time is the market value of your vehicle, so if the vehicle is not worth much consider dropping full coverage.
Med pay and Personal Injury Protection (PIP) – Medical payments and Personal Injury Protection insurance kick in for expenses like pain medications, doctor visits, surgery and nursing services. They are often used in conjunction with a health insurance plan or if you do not have health coverage. Medical payments and PIP cover not only the driver but also the vehicle occupants as well as any family member struck as a pedestrian. Personal injury protection coverage is not universally available but it provides additional coverages not offered by medical payments coverage
Collision coverages – This coverage covers damage to your A7 resulting from a collision with a stationary object or other vehicle. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision coverage pays for claims like damaging your car on a curb, sideswiping another vehicle and colliding with a tree. This coverage can be expensive, so consider dropping it from lower value vehicles. Another option is to choose a higher deductible to get cheaper collision coverage.
Uninsured/Underinsured Motorist (UM/UIM) – Uninsured or Underinsured Motorist coverage protects you and your vehicle’s occupants when the “other guys” do not carry enough liability coverage. Covered claims include medical payments for you and your occupants as well as your vehicle’s damage.
Since many drivers carry very low liability coverage limits, it only takes a small accident to exceed their coverage. So UM/UIM coverage is very important. Most of the time these limits do not exceed the liability coverage limits.
Insureds leave their current company for any number of reasons including high rates after DUI convictions, denial of a claim, lack of trust in their agent and even unfair underwriting practices. Regardless of your reason for switching companies, finding a great new company is easier than you think.
Cheaper insurance is definitely available on the web in addition to many insurance agents, so you need to quote auto insurance with both to have the best chance of lowering rates. Some insurance providers may not offer online price quotes and many times these small insurance companies provide coverage only through local independent agencies.
As you quote auto insurance, never reduce coverage to reduce premium. There are a lot of situations where drivers have reduced liability limits or collision coverage and found out when filing a claim that the savings was not a smart move. Your focus should be to find the BEST coverage for the lowest price but still have enough coverage for asset protection.
Additional detailed information can be read by following these links: