People not familiar with comparison shopping online will discover finding affordable Springfield auto insurance quite challenging.
It’s a great practice to compare prices every six months due to the fact that insurance rates tend to go up over time. If you had the lowest rates six months ago you may be paying too much now. Ignore everything you know about auto insurance because you’re about to find out the fastest way to get good coverage at a lower rate.
Informed Drivers can Cut Their Rates
Consumers need to have an understanding of some of the elements that go into determining the price you pay for auto insurance. Knowing what influences your rates helps enable you to make changes that will entitle you to big savings.
- Drive less and save money – The more miles you rack up on your car in a year the more you will pay for auto insurance. The majority of insurers price each vehicle’s coverage determined by how the vehicle is used. Cars and trucks used primarily for pleasure use qualify for better rates than those used for commuting. Double check that your auto insurance policy is showing how each vehicle is driven.
- Traffic violations increase rates – A bad driving record has a big impact on rates. Drivers with clean records tend to pay less for car insurance than people who have multiple driving citations. Only having one ticket may increase your cost forty percent or more. If you have severe violations such as hit and run, DWI or reckless driving convictions may find they need to submit a SR-22 form with their state motor vehicle department in order to drive a vehicle legally.
- Car features impact rates – Driving a car with anti-theft technology or alarm system can help bring down rates. Theft prevention features such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all hinder car theft.
- Safe vehicles cost less to insure – Cars with high safety ratings get lower rates. Safer cars protect occupants better and any reduction in injury severity means lower claim amounts and lower rates for you.
- Don’t get talked into coverage you don’t need – There are a ton of additional coverages that can waste your money on your policy. Things like roadside assistance, accident forgiveness and membership fees may be wasting your money. They may seem like a good idea at first, but your needs may have changed so remove them from your policy.
- Your occupation can affect rates – Did you know that where you work can have an impact on rates? Occupations like judges, social workers and accountants are shown to have higher rates than average attributed to high stress and long work hours. On the flip side, professions such as scientists, athletes and homemakers pay the least.
- An active claims history can cost you – If you file claims often, you can look forward to either a policy non-renewal or much higher rates. Insurance companies in South Dakota generally give better rates to people who do not file claims often. Auto insurance is intended for larger claims.
Do you qualify for a discount?
Car insurance companies don’t list every discount very clearly, so the following is a list of both well-publicized and the more hidden discounts you could be receiving.
- Homeowners Pay Less – Being a homeowner may trigger a auto insurance policy discount because maintaining a house requires personal responsibility.
- Driver’s Ed – Make teen driver coverage more affordable by requiring them to enroll in driver’s education in high school.
- Payment Discounts – If you pay your entire premium ahead of time instead of making monthly payments you may reduce your total bill.
- Safety Course Discount – Taking a driver safety course could possibly earn you a 5% discount if your company offers it.
- Seat Belts Save more than Lives – Using a seat belt and requiring all passengers to wear their seat belts could cut 10% or more off the personal injury premium cost.
- Good Student Discount – A discount for being a good student can get you a discount of up to 25%. Earning this discount can benefit you well after school through age 25.
- Drive Less and Save – Fewer annual miles could qualify for discounted rates on garaged vehicles.
- Early Signing – Select companies give a discount for switching to them prior to your current policy expiration. This can save 10% or more.
- Club Memberships – Affiliation with a civic or occupational organization could trigger savings when buying auto insurance.
- Theft Prevention System – Vehicles with anti-theft systems can help prevent theft and qualify for as much as a 10% discount.
Consumers should know that many deductions do not apply to your bottom line cost. The majority will only reduce specific coverage prices like comprehensive or collision. Just because it seems like all the discounts add up to a free policy, companies wouldn’t make money that way.
To choose providers offering auto insurance discounts in South Dakota, click here.
Is there truth in advertising?
Auto insurance companies such as State Farm and Allstate continually stream ads in print and on television. They all seem to have a common claim that you’ll save big after switching your coverage to them. But how can every company make the same claim? It’s all in the numbers.<img class="alignright" style="padding-top:15px" src="https://www.carinsurancediy.com/wp-content/uploads/ci175-83.jpg" alt="South Dakota car insurance quote” />
All companies have a preferred profile for the type of driver that is profitable for them. A good example of a profitable customer might be between 25 and 40, is a homeowner, and drives less than 7,500 miles a year. A propective insured that hits that “sweet spot” will get the preferred rates and most likely will save quite a bit of money when switching.
Potential customers who don’t measure up to these standards will be quoted higher premiums which usually ends up with the driver buying from a lower-cost company. The ads say “customers who switch” but not “drivers who get quotes” save that kind of money. This is how insurance companies can advertise the savings. This emphasizes why drivers must get quotes from several different companies. It is impossible to predict the company that will have the lowest rates.
What coverages do I need?
When it comes to buying the best auto insurance coverage for your personal vehicles, there really is not a perfect coverage plan. Everyone’s needs are different.
For example, these questions could help you determine whether your personal situation could use an agent’s help.
- Are my tools covered if they get stolen from my vehicle?
- Does my policy cover my teen driver if they drive my company car?
- When should I not file a claim?
- Do I have coverage when making deliveries for my home business?
- Who is covered by my policy?
- Do I need PIP (personal injury protection) coverage in South Dakota?
- How high should my medical payments coverage be?
- Is my vehicle covered by my employer’s policy when using it for work?
If it’s difficult to answer those questions but one or more may apply to you, then you may want to think about talking to an agent. If you don’t have a local agent, fill out this quick form.
Even more information is available at the South Dakota Division of Insurance website. South Dakota drivers can learn about specific coverages, find a variety of consumer forms, and read industry bulletins.
The following articles may also be useful.
More comparisons equals lower rates
Affordable auto insurance is attainable online as well as from independent agents in Springfield, and you should compare price quotes from both to have the best selection. There are still a few companies who don’t offer you the ability to get quotes online and these small, regional companies work with independent agents.
When trying to cut insurance costs, it’s a bad idea to buy poor coverage just to save money. There have been many cases where drivers have reduced comprehensive coverage or liability limits only to find out they didn’t purchase enough coverage. The proper strategy is to find the BEST coverage at an affordable rate, not the least amount of coverage.
Drivers change insurance companies for many reasons like being labeled a high risk driver, policy non-renewal, questionable increases in premium or poor customer service. No matter why you want to switch, finding a new auto insurance company can be easier than you think.