Pricey auto insurance can diminish your checking account and force you to make tough financial choices. Comparing price quotes is an excellent way to tighten up your finances.
There is such a variety of auto insurance companies to choose from, and although it’s nice to have a selection, more choices can make it harder to compare rates.
You should make it a habit to price shop coverage every six months because auto insurance rates change quite often. Even if you think you had the lowest rate on your last policy there is a good chance you can find better prices now. Forget anything you know (or think you know) about auto insurance because you’re going to learn the tricks you need to know to find lower rates on auto insurance.
Reduce your auto insurance rates with these eight discounts
Some insurers don’t always publicize every discount very clearly, so the list below contains some of the more common and the harder-to-find credits that may apply to you. If you check and find you aren’t receiving every discount you deserve, you’re just leaving money on the table.
- ABS Braking Discount – Cars with anti-lock braking systems prevent accidents and therefore earn up to a 10% discount.
- Accident Waiver – Not a discount per se, but companies like GEICO, Allstate and Liberty Mutual permit an accident without getting socked with a rate hike if your claims history is clear for a certain period of time.
- Onboard Data Collection – Drivers that enable their auto insurance company to analyze their driving habits by installing a telematics device like Drivewise from Allstate or In-Drive from State Farm may see discounts if they show good driving skills.
- Early Signing – A few companies give discounts for buying a policy prior to your current policy expiration. You could save around 10% when you .
- Driver’s Ed – Reduce the cost of insurance for teen drivers by having them complete a driver education course as it will make them better drivers and lower rates.
- Bundled Policy Discount – When you have multiple policies and insure them both with the same insurance company you may save up to 20% and get you .
- Passive Restraints – Vehicles equipped with air bags or motorized seat belts can receive discounts up to 30%.
- Driver Training Discounts – Taking time to complete a course that instructs on driving safety is a good idea and can lower rates depending on where you live.
Policy discounts save money, but many deductions do not apply to all coverage premiums. Most only reduce the cost of specific coverages such as collision or personal injury protection. So despite the fact that it appears having all the discounts means you get insurance for free, it just doesn’t work that way.
Auto insurance companies who might offer some of the discounts shown above include:
Before purchasing a policy, check with each company or agent how many discounts you can get. Some credits might not be offered on policies everywhere.
You are unique and your auto insurance should be too
When choosing coverage, there really is not a “perfect” insurance plan. Every situation is different so your insurance should reflect that For instance, these questions can help discover if your situation could use an agent’s help.
- Do no-fault laws apply in Georgia?
- Can my teen driver be rated on a liability-only vehicle?
- How high should my uninsured/underinsured coverage be in Georgia?
- Does my insurance cover a custom paint job?
- Does medical payments coverage apply to all occupants?
- How much liability do I need to cover my assets?
If you can’t answer these questions but you know they apply to you, you may need to chat with a licensed agent. If you don’t have a local agent, simply complete this short form or you can also visit this page to select a carrier It’s fast, free and may give you better protection.
Be skeptical of auto insurance ads
Consumers in Georgia can’t avoid all the ads that claim the lowest prices from companies such as Progressive, GEICO, Allstate and State Farm. All the companies make the point about saving some big amount if you get a free and switch your coverage to them.
How can each company have lower policy pricing? It’s all in how they say it.<img class="alignright" style="padding-top:15px;" src="https://www.carinsurancediy.com/wp-content/uploads/ci175-107.jpg" alt="Bainbridge Georgia car insurance prices”/>
Insurance providers have a preferred profile for the type of customer that will not have excessive claims. For example, a profitable risk profile might be a mature driver, owns their home, and has a high credit rating. A driver who matches those parameters will most likely get cheap car insurance rates and most likely will pay quite a bit less when switching companies.
Consumers who do not match those criteria must pay higher premium rates and this can result in the prospect going elsewhere. If you listen to the ad wording, they say “customers that switch” not “everyone who quotes” save the amount stated. This is how companies can truthfully advertise the savings.
Each company has different criteria, so you need to compare rate quotes every year. It’s just too difficult to predict which company will be your best fit.
Learn more about Georgia auto insurance
Additional information is located on the through this link. Georgia drivers can find disaster information, file complaints about an insurance agent or broker, and discover disciplinary actions.
Auto insurance coverages and their meanings
Having a good grasp of your policy helps when choosing appropriate coverage and proper limits and deductibles. Policy terminology can be ambiguous and even agents have difficulty translating policy wording. Shown next are the normal coverages offered by auto insurance companies.
Comprehensive auto coverage
This coverage pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You first have to pay a deductible and then insurance will cover the rest of the damage.
Comprehensive insurance covers claims like damage from a tornado or hurricane, theft, a tree branch falling on your vehicle and damage from getting keyed. The highest amount a auto insurance company will pay at claim time is the ACV or actual cash value, so if the vehicle’s value is low consider removing comprehensive coverage.
Auto collision coverage
Collision insurance pays to fix your vehicle from damage from colliding with another car or object. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision coverage protects against things like hitting a parking meter, sideswiping another vehicle, sustaining damage from a pot hole, scraping a guard rail and crashing into a building. Paying for collision coverage can be pricey, so you might think about dropping it from older vehicles. Another option is to raise the deductible to bring the cost down.
UM/UIM (Uninsured/Underinsured Motorist) coverage
Uninsured or Underinsured Motorist coverage provides protection from other drivers when they either have no liability insurance or not enough. It can pay for injuries sustained by your vehicle’s occupants and also any damage incurred to your vehicle.
Due to the fact that many Georgia drivers only carry the minimum required liability limits (25/50/25 in Georgia), it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage should not be overlooked. Usually the UM/UIM limits are set the same as your liablity limits.
This will cover damage that occurs to a person or their property that is your fault. It protects YOU against claims from other people, and does not provide coverage for damage sustained by your vehicle in an accident.
Liability coverage has three limits: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You commonly see policy limits of 25/50/25 which stand for a limit of $25,000 per injured person, $50,000 for the entire accident, and a limit of $25,000 paid for damaged property. Occasionally you may see one limit called combined single limit (CSL) which combines the three limits into one amount with no separate limits for injury or property damage.
Liability insurance covers claims such as funeral expenses, repair costs for stationary objects, repair bills for other people’s vehicles and medical services. How much liability should you purchase? That is up to you, but buy higher limits if possible. Georgia state law requires minimum liability limits of 25,000/50,000/25,000 but you should consider buying higher limits.
Medical payments and PIP coverage
Personal Injury Protection (PIP) and medical payments coverage kick in for expenses such as dental work, X-ray expenses, rehabilitation expenses and pain medications. They are utilized in addition to your health insurance plan or if you are not covered by health insurance. Coverage applies to all vehicle occupants as well as getting struck while a pedestrian. Personal Injury Protection is not available in all states and may carry a deductible
Quote more, save more
As you go through the steps to switch your coverage, never buy poor coverage just to save money. There have been many cases where consumers will sacrifice comprehensive coverage or liability limits only to regret at claim time they didn’t purchase enough coverage. Your goal is to buy the best coverage you can find for the lowest price, not the least amount of coverage.
In this article, we presented many ways to lower your auto insurance prices. The most important thing to understand is the more companies you get rates for, the more likely it is that you will get a better rate. You may even find the best price on auto insurance is with some of the smallest insurance companies. They may only write in your state and offer lower rates as compared to the big name companies such as Allstate and Progressive.