I can’t think of a single person who enjoys paying for car insurance, especially when the cost is way too high. Multiple insurance companies compete for your business, and it can be difficult to compare rates and uncover the absolute lowest price
It’s important to price shop coverage occasionally because rates change regularly. Even if you think you had the best rates a year ago there may be better deals available now. Starting right now, forget all the misinformation about car insurance because we’re going to show you how to use the internet to save money, get proper coverage and the best rates.
Don’t pay full price with these discounts
Car insurance is not cheap, but there are discounts available to help offset the cost. Some discounts apply automatically at the time of quoting, but some may not be applied and must be requested specifically in order for you to get them. If you’re not getting every credit possible, you are throwing money away.
- Discount for Good Grades – Performing well in school can save 20 to 25%. Earning this discount can benefit you up until you turn 25.
- Anti-theft System – Cars that have factory anti-theft systems can help prevent theft and therefore earn up to a 10% discount.
- Pay Upfront and Save – If you pay your bill all at once instead of monthly or quarterly installments you could save 5% or more.
- Safety Course Discount – Taking part in a course teaching defensive driving skills could cut 5% off your bill depending on where you live.
- Employee of Federal Government – Being employed by or retired from a federal job can earn a discount up to 10% with certain companies.
- Safe Driver Discount – Drivers who don’t get into accidents may save up to 50% more than drivers with accidents.
Consumers should know that most credits do not apply to your bottom line cost. The majority will only reduce specific coverage prices like physical damage coverage or medical payments. Even though it may seem like all those discounts means the company will pay you, companies don’t profit that way. Any amount of discount will help reduce the amount you have to pay.
To see a list of insurance companies with the best car insurance discounts in Missouri, follow this link.
Rate influencing factors
Smart consumers have a good feel for some of the elements that come into play when calculating the rates you pay for car insurance. Having a good understanding of what impacts premium levels empowers consumers to make smart changes that will entitle you to big savings.
The list below includes a partial list of the pieces used by your company to calculate prices.
- Poor driving leads to higher costs – Drivers who don’t get tickets have lower premiums than their less careful counterparts. Only having one moving violation can bump up the cost by as much as thirty percent. Drivers who have dangerous citations such as DUI or reckless driving may need to file a proof of financial responsibility form (SR-22) with their state motor vehicle department in order to prevent a license revocation.
- Don’t let your coverage lapse – Driving your car without having proper coverage is a misdemeanor and you will pay a penalty because you let your insurance lapse. And not only will insurance be more expensive, getting caught without coverage will get you a revoked license or a big fine.
- Men are more aggressive – Statistics demonstrate women are more cautious behind the wheel. That doesn’t necessarily mean that men are worse drivers. Women and men have accidents at a similar rate, but the male of the species cause more damage. Men also tend to get more serious tickets such as reckless driving. Teenage male drivers are most likely to cause an accident and are penalized with high car insurance rates.
- High performance equals high price – The performance of the vehicle you are buying insurance for makes a big difference in your rates. The lowest base rates are usually for lower performance four cylinder passenger vehicles, but the final cost of insurance is determined by many other factors.
Your personal situation dictates your coverage
When choosing the right insurance coverage, there isn’t really a single plan that fits everyone. Your needs are not the same as everyone else’s so your insurance needs to address that. For instance, these questions can help discover whether or not you could use an agent’s help.
- How many claims can I have before being cancelled?
- I don’t drive much so do I pay less?
- When should my teen driver be added to my policy?
- Do I need roadside assistance coverage?
- Should I put collision coverage on all my vehicles?
- Is business equipment covered while in my vehicle?
- Will my vehicle be repaired with OEM or aftermarket parts?
- How much liability do I need to cover my assets?
- Does having multiple vehicles earn me a discount?
- Do no-fault laws apply in Missouri?
If you don’t know the answers to these questions, you may need to chat with an agent. To find an agent in your area, fill out this quick form or click here for a list of car insurance companies in your area. It’s fast, doesn’t cost anything and can help protect your family.
Buyer beware of car insurance advertising tricks
Consumers in Missouri get pounded daily by advertisements that promise big savings by companies like Progressive, Geico, Allstate and State Farm. All the ads make the same claim about savings after switching to them.
How do they all claim to save you money? This is how they do it.
Insurance companies are able to cherry pick for the right customer that is profitable for them. For instance, a desirable insured might be profiled as a mature driver, has no driving citations, and drives newer vehicles. A customer who meets those qualifications gets the lowest rates and as a result will probably save quite a bit of money when switching.
Potential customers who don’t qualify for the requirements will be quoted a higher premium which usually ends up with the customer not buying. The ad wording is “drivers who switch” not “everyone that quotes” save that much money. This is how companies can truthfully advertise the way they do.
This emphasizes why you should get quotes from several different companies. It is impossible to predict which car insurance company will provide you with the cheapest rates.
For more information
More information is available on the website for the Missouri Department of Insurance located here. Consumers can read consumer alerts, view agent and company licensing information, and discover disciplinary actions.
One last thing about your coverage
Affordable car insurance can be found both online as well as from independent agents in Ferguson, so you should be comparing quotes from both to have the best chance of lowering rates. Some car insurance companies don’t offer online quoting and usually these small, regional companies provide coverage only through local independent agents.
You just learned a lot of ways to reduce car insurance prices online. The key thing to remember is the more times you quote, the better your chances of lowering your rates. Consumers could even find that the biggest savings come from a company that doesn’t do a lot of advertising. Smaller companies may only write in your state and offer lower rates than the large multi-state companies such as Progressive or Geico.