Paying for high-priced car insurance can dwindle your bank account and force you to make sacrifices. Shopping your coverage around is free and is an excellent way to lower your monthly bill. Because there are so many options, it’s difficult to choose the most cost effective company.
You need to price shop coverage occasionally since rates are usually higher with each renewal. Despite the fact that you may have had the lowest price last year other companies may now be cheaper. So just ignore everything you know about car insurance because you’re about to learn the fastest way to reduce your cost while increasing coverage.
Why you might pay higher rates in Mankato
Smart consumers have a good feel for the rating factors that play a part in calculating car insurance rates. When you know what positively or negatively determines base rates empowers consumers to make smart changes that could result in big savings.
- The type of vehicle makes a difference – The make and model of the vehicle you are insuring makes a big difference in how high your rates are. Low performance passenger cars generally receive the lowest base rates, but the final cost of insurance is determined by many other factors.
- You might want pay the small claims yourself – If you are a frequent claim filer, you can definitely plan on either a policy non-renewal or much higher rates. Auto insurance companies in Minnesota generally give discounts to drivers who do not rely on their insurance for small claims. Auto insurance is intended for major claims that would cause financial hardship.
- More than one policy can earn a discount – Most companies give discounts to policyholders who buy several policies from them such as combining an auto and homeowners policy. Discounts can add up to anywhere from five to ten percent in most cases. Even though this discount sounds good, it’s in your best interest to shop around to verify if the discount is saving money. You may still be able to find a better deal by buying insurance from more than one company.
- Lower rates with optional equipment – Choosing a vehicle that has an advanced theft prevention system can help lower your rates. Theft prevention devices like GM’s OnStar, tamper alarm systems and vehicle immobilizers can thwart car theft.
- How credit affects car insurance rates – Your credit score is a huge factor in calculating your car insurance rates. Therefore, if your credit is lower than you’d like, you could pay less to insure your by improving your rating. Consumers who have high credit ratings tend to be less risk to insure than those with poor credit.
- More miles equals more premium – The more you drive every year the higher your rate. Almost all companies apply a rate based on their usage. Vehicles left parked in the garage can get a lower rate than those used for commuting. Make sure your car insurance policy shows the correct driver usage, because it can save money.
- Policy add-ons can waste money – There are a lot of extra coverages you can purchase on your car insurance policy. Coverages like personal injury protection, better glass coverage and additional equipment coverage are examples of these. They may seem good when talking to your agent, but now you might not need them so get rid of them and save.
- Choose a safe vehicle and save – Safer cars tend to have better insurance rates. These vehicles result in less severe injuries and fewer injuries translates into savings for insurance companies and thus lower rates.
Don’t miss these discounts
Companies that sell car insurance do not advertise all their discounts in an easy-to-find place, so here is a list both the well known as well as the least known ways to save on car insurance. If they aren’t giving you every credit possible, you are throwing money away.
- Auto/Life Discount – Larger companies have lower rates if you buy life insurance from them.
- Organization Discounts – Participating in a qualifying organization may earn a discount on your policy.
- Defensive Driving Course – Taking part in a course in driver safety could possibly earn you a 5% discount depending on where you live.
- Save with a New Car – Adding a new car to your policy can cost up to 25% less since new cars are generally safer.
- Seat Belt Usage – Drivers who require all occupants to use their safety belts can save 10% or more on the medical payments or PIP coverage costs.
It’s important to understand that many deductions do not apply to the entire policy premium. A few only apply to the cost of specific coverages such as liability and collision coverage. So when it seems like you would end up receiving a 100% discount, car insurance companies aren’t that generous.
When might I need help?
When it comes to choosing adequate coverage, there isn’t really a cookie cutter policy. Your needs are not the same as everyone else’s so this has to be addressed. Here are some questions about coverages that might point out if your insurance needs could use an agent’s help.
- Why am I be forced to buy a membership to get insurance from some companies?
- Am I covered when renting a car or should I buy coverage from the car rental agency?
- Are my tools covered if they get stolen from my vehicle?
- Are split liability limits better than a combined single limit?
- Is my vehicle covered by my employer’s policy when using it for work?
- Do I have coverage for damage caused while driving under the influence?
- Can I get a multi-policy discount for packaging my home and auto coverage?
- Am I covered if I crash into my own garage door?
- Am I covered when using my vehicle for business?
If you can’t answer these questions, you may need to chat with a licensed agent. To find an agent in your area, simply complete this short form or you can also visit this page to select a carrier It is quick, free and may give you better protection.
For more Minnesota car insurance information
More detailed Minnesota car insurance information is located at the Minnesota Department of Commerce website. Visitors are able to get help finding coverage, file complaints about an insurance agent or broker, and find disaster information.
Quote more, save more
As you prepare to switch companies, make sure you don’t skimp on critical coverages to save a buck or two. There have been many situations where an insured cut comprehensive coverage or liability limits and discovered at claim time that a couple dollars of savings turned into a financial nightmare. The aim is to buy the best coverage you can find at an affordable rate while not skimping on critical coverages.
You just read many tips how you can save on car insurance. The key thing to remember is the more providers you compare, the more likely it is that you will get a better rate. You may be surprised to find that the lowest priced car insurance comes from a company that doesn’t do a lot of advertising. Some small companies can often insure niche markets at a lower cost as compared to the big name companies such as Allstate and Progressive.
Cheaper car insurance is available online as well as from independent agents in Mankato, so you should compare both in order to have the best chance of saving money. A few companies don’t offer you the ability to get quotes online and most of the time these regional insurance providers sell through independent agents.