Comparing and finding low cost prices for auto insurance could be very difficult for drivers who are new to online rate comparisons. With such a large number of insurers available, it can be more work than you anticipated to lower your rates.
The purpose of this article is to teach you how car insurance quotes work. If you are paying for car insurance now, you will be able to reduce your rates substantially using this strategy. But drivers must understand how companies market insurance on the web and take advantage of how the system works.
Auto insurance companies don’t list every possible discount very clearly, so the list below details a few of the more well known in addition to some of the lesser obvious discounts that may be available.
As a footnote on discounts, most credits do not apply to all coverage premiums. Most only cut the cost of specific coverages such as comp or med pay. So even though you would think you can get free auto insurance, that’s just not realistic.
Large car insurance companies and their possible discounts are included below.
Double check with each company or agent which discounts you may be entitled to. A few discounts may not be offered in every state. If you would like to choose from a list of insurers that provide some of the discounts listed above, click here.
Multiple criteria are used in the calculation when premium rates are determined. Some factors are common sense such as your driving record, but other factors are less obvious like your continuous coverage or how safe your car is.Consumers need to have an understanding of the factors that aid in calculating insurance rates. If you understand what impacts premium levels, this empowers consumers to make smart changes that could result in lower rates.
The items below are a few of the “ingredients” utilized by car insurance companies to help set premiums.
When it comes to choosing the best insurance coverage for your personal vehicles, there isn’t really a perfect coverage plan. Your needs are not the same as everyone else’s.
For example, these questions might help in determining if you would benefit from an agent’s advice.
If it’s difficult to answer those questions then you might want to talk to an agent. To find an agent in your area, take a second and complete this form.
Knowing the specifics of your auto insurance policy can be of help when determining the right coverages at the best deductibles and correct limits. The terms used in a policy can be difficult to understand and even agents have difficulty translating policy wording.
Comprehensive protection – Comprehensive insurance will pay to fix damage OTHER than collision with another vehicle or object. You first must pay your deductible and then insurance will cover the rest of the damage.
Comprehensive can pay for claims like damage from a tornado or hurricane, hitting a deer, rock chips in glass and damage from getting keyed. The highest amount you can receive from a comprehensive claim is the ACV or actual cash value, so if the vehicle is not worth much it’s not worth carrying full coverage.
Medical expense coverage – Personal Injury Protection (PIP) and medical payments coverage provide coverage for immediate expenses like ambulance fees, surgery and doctor visits. They are utilized in addition to your health insurance policy or if you are not covered by health insurance. They cover not only the driver but also the vehicle occupants in addition to if you are hit as a while walking down the street. PIP is not universally available and may carry a deductible
Collision coverage – Collision coverage covers damage to your Sonic from colliding with an object or car. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision can pay for things such as crashing into a ditch, hitting a parking meter, driving through your garage door and scraping a guard rail. Collision is rather expensive coverage, so consider removing coverage from lower value vehicles. You can also bump up the deductible to get cheaper collision coverage.
Auto liability insurance – This provides protection from injuries or damage you cause to other’s property or people by causing an accident. This coverage protects you from claims by other people, and does not provide coverage for your own vehicle damage or injuries.
Coverage consists of three different limits, bodily injury per person, bodily injury per accident and property damage. Your policy might show policy limits of 100/300/100 that translate to a $100,000 limit per person for injuries, a total of $300,000 of bodily injury coverage per accident, and a total limit of $100,000 for damage to vehicles and property. Some companies may use one number which is a combined single limit which provides one coverage limit with no separate limits for injury or property damage.
Liability can pay for things like loss of income, attorney fees, pain and suffering, court costs and repair costs for stationary objects. How much coverage you buy is up to you, but buy higher limits if possible.
Uninsured or underinsured coverage – This protects you and your vehicle from other drivers when they either have no liability insurance or not enough. This coverage pays for hospital bills for your injuries as well as your vehicle’s damage.
Because many people carry very low liability coverage limits, their liability coverage can quickly be exhausted. This is the reason having UM/UIM coverage is very important. Usually these coverages are similar to your liability insurance amounts.
When searching for low cost insurance quotes, make sure you don’t skimp on coverage in order to save money. There have been many cases where someone dropped full coverage only to regret that saving that couple of dollars actually costed them tens of thousands. Your aim should be to find the BEST coverage at an affordable rate, but do not sacrifice coverage to save money.
There are still a few companies who do not provide internet price quotes and many times these small, regional companies provide coverage only through local independent agencies. More affordable insurance coverage can be bought from both online companies in addition to local insurance agencies, and you should compare price quotes from both in order to have the best chance of saving money.
People change insurance companies for any number of reasons including unfair underwriting practices, delays in responding to claim requests, denial of a claim and policy cancellation. Whatever your reason, finding a new company can be easy and end up saving you some money.
Additional insurance coverage information is located below: