I can’t think of a single person who enjoys paying for auto insurance, especially knowing the cost is too high.
Many insurers compete for your insurance dollar, so it’s not easy to compare every insurance company to find the best price available.
If you currently have a car insurance policy, you should be able to save some money using these techniques. Finding affordable coverage in Noblesville is not rocket science. Although Indiana vehicle owners need to learn how the larger insurance companies compete online and apply this information to your search.
Don’t pay full price with these six discounts
Car insurance can cost a lot, but discounts can save money and there are some available that you may not even be aware of. Some trigger automatically at the time of quoting, but a few must be specifically requested prior to getting the savings.
- Pay Now and Pay Less – If paying your policy premium upfront instead of making monthly payments you could save 5% or more.
- Discount for Life Insurance – Larger companies have a discount if you purchase life insurance.
- Early Signing – Select companies give a discount for buying a policy prior to your current policy expiration. This can save 10% or more.
- Federal Employees – Being employed by or retired from a federal job may qualify you for a discount depending on your company.
- College Student – Kids in college who live away from home and don’t have a car may be able to be covered for less.
- Seat Belts Save – Using a seat belt and requiring all passengers to buckle their seat belts can save up to 15% off your PIP or medical payments premium.
As a disclaimer on discounts, some of the credits will not apply to the overall cost of the policy. The majority will only reduce the price of certain insurance coverages like medical payments or collision. So even though they make it sound like you would end up receiving a 100% discount, you won’t be that lucky. Any qualifying discounts will bring down your overall premium however.
To see a list of providers who offer auto insurance discounts in Indiana, click here to view.
Do you really save 40% when you switch?
Allstate, GEICO and Progressive regularly use ads on television and other media. All the companies have a common claim that you’ll save big if you move your policy. How does each company make almost identical claims?
All companies can use profiling for the right customer that makes them money. For example, a desirable insured might be profiled as between the ages of 40 and 55, has no tickets, and chooses high deductibles. A customer who fits that profile will qualify for the lowest rates and as a result will probably save when they switch companies.
Potential customers who are not a match for the requirements will have to pay a higher premium and this can result in the customer not buying. Company advertisements say “customers who switch” but not “drivers who get quotes” save money. This is how insurance companies can state the savings.
Because of the profiling, you need to compare as many rates as you can. It’s just too difficult to predict which company will have the lowest rates.
Learn about auto insurance coverages
Knowing the specifics of a auto insurance policy can be of help when determining the right coverages and proper limits and deductibles. Auto insurance terms can be confusing and reading a policy is terribly boring. Listed below are typical coverages found on the average auto insurance policy.
Uninsured/Underinsured Motorist (UM/UIM)
Your UM/UIM coverage protects you and your vehicle from other motorists when they do not carry enough liability coverage. Covered losses include hospital bills for your injuries as well as damage to your vehicle.
Due to the fact that many Indiana drivers have only the minimum liability required by law (25/50/10), it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage should not be overlooked. Most of the time your uninsured/underinsured motorist coverages are set the same as your liablity limits.
Med pay and Personal Injury Protection (PIP)
Med pay and PIP coverage provide coverage for immediate expenses such as hospital visits, rehabilitation expenses and prosthetic devices. They are often used in conjunction with a health insurance program or if there is no health insurance coverage. It covers all vehicle occupants and also covers if you are hit as a while walking down the street. PIP is not universally available and gives slightly broader coverage than med pay
This coverage will pay to fix damage OTHER than collision with another vehicle or object. You first have to pay a deductible then your comprehensive coverage will pay.
Comprehensive insurance covers things such as damage from getting keyed, rock chips in glass, damage from a tornado or hurricane and a tree branch falling on your vehicle. The maximum payout your auto insurance company will pay is the ACV or actual cash value, so if your deductible is as high as the vehicle’s value consider removing comprehensive coverage.
Auto liability insurance
This coverage protects you from damage or injury you incur to other people or property by causing an accident. This coverage protects you from legal claims by others. Liability doesn’t cover damage sustained by your vehicle in an accident.
Split limit liability has three limits of coverage: per person bodily injury, per accident bodily injury, and a property damage limit. You commonly see values of 100/300/100 which stand for a limit of $100,000 per injured person, $300,000 for the entire accident, and $100,000 of coverage for damaged propery. Occasionally you may see one limit called combined single limit (CSL) that pays claims from the same limit without having the split limit caps.
Liability coverage pays for claims like pain and suffering, emergency aid and structural damage. How much liability should you purchase? That is up to you, but consider buying as large an amount as possible. Indiana state law requires minimum liability limits of 25,000/50,000/10,000 but it’s recommended drivers buy higher limits.
Coverage for collisions
This coverage pays to fix your vehicle from damage caused by collision with a stationary object or other vehicle. You have to pay a deductible and then insurance will cover the remainder.
Collision coverage protects against claims like colliding with another moving vehicle, crashing into a ditch, driving through your garage door and damaging your car on a curb. Paying for collision coverage can be pricey, so consider dropping it from vehicles that are older. Drivers also have the option to raise the deductible to bring the cost down.
Additional resources for Indiana consumers
Much more information about auto insurance in Indiana is located on the website for the Indiana Department of Insurance found here. Consumers can read enforcement actions against agents and companies, find disaster information, read state legal mandates and laws, and report car insurance fraud.
Quote more, save more
While you’re price shopping online, don’t be tempted to buy less coverage just to save a little money. There have been many situations where consumers will sacrifice comprehensive coverage or liability limits and learned later that the few dollars in savings costed them thousands. Your focus should be to find the BEST coverage for the lowest price, not the least amount of coverage.
We just covered some good ideas how you can compare auto insurance prices online. It’s most important to understand that the more rate quotes you have, the better likelihood of reducing your rate. You may even discover the lowest premiums are with the smaller companies. These companies may have significantly lower rates on certain market segments than the large multi-state companies such as Allstate or State Farm.