No one cherishes buying auto insurance, especially when the cost is way too high.
Multiple auto insurance companies compete for your hard-earned dollar, so it can be very hard to choose a company to discover the definitive lowest cost out there.
If you currently have a car insurance policy, you stand a good chance to be able to reduce your rates substantially using these tips. Finding the best rates in Dell Rapids is not that difficult. Nevertheless, South Dakota drivers must understand the way companies sell online and apply this information to your search.
Companies offer discounts so take them!
Companies that sell car insurance do not advertise every discount very well, so we took the time to find both well-publicized and also the lesser-known savings tricks you should be using.
- Life Insurance Discount – Larger companies have better rates if you take out life insurance.
- College Student – Kids in college who are attending college and do not have a car can receive lower rates.
- Accident Forgiveness – A handful of insurance companies allow you one accident before raising your premiums as long as you don’t have any claims prior to the accident.
- Sign Early and Save – Select companies give a discount for buying a policy prior to your current policy expiring. It can save you around 10%.
- Auto/Home Discount – When you have multiple policies with the same company you could get a discount of 10% to 20% off each policy.
- Pay Upfront and Save – If you pay your bill all at once instead of making monthly payments you may reduce your total bill.
- Good Student – Performing well in school can earn a discount of 20% or more. The discount lasts well after school through age 25.
- Driver Safety – Taking part in a course in driver safety can save you 5% or more if you qualify.
Keep in mind that most credits do not apply to the entire policy premium. Some only apply to the cost of specific coverages such as liability, collision or medical payments. Just because you may think it’s possible to get free car insurance, you won’t be that lucky.
To see a list of companies who offer auto insurance discounts in South Dakota, click here to view.
More tips and info about auto insurance can be found at the South Dakota Division of Insurance website. South Dakota drivers can view agent and company licensing information, discover disciplinary actions, find a variety of consumer forms, and file complaints about an insurance agent or broker.
Specific coverages
Understanding the coverages of a auto insurance policy aids in choosing the right coverages and the correct deductibles and limits. Policy terminology can be impossible to understand and even agents have difficulty translating policy wording. Listed below are the normal coverages available from auto insurance companies.
Medical expense insurance
Personal Injury Protection (PIP) and medical payments coverage provide coverage for bills like doctor visits, X-ray expenses, surgery and rehabilitation expenses. They can be used in conjunction with a health insurance plan or if there is no health insurance coverage. They cover you and your occupants and will also cover being hit by a car walking across the street. PIP is only offered in select states and may carry a deductible
Collision coverage protection
Collision insurance will pay to fix damage to your vehicle caused by collision with another vehicle or an object, but not an animal. You first must pay a deductible then your collision coverage will kick in.
Collision coverage pays for claims such as colliding with a tree, rolling your car and hitting a parking meter. Collision coverage makes up a good portion of your premium, so analyze the benefit of dropping coverage from older vehicles. Another option is to choose a higher deductible in order to get cheaper collision rates.
Protection from uninsured/underinsured drivers
This gives you protection from other drivers when they are uninsured or don’t have enough coverage. This coverage pays for medical payments for you and your occupants and damage to your vehicle.
Since many South Dakota drivers only purchase the least amount of liability that is required (25/50/25 in South Dakota), their liability coverage can quickly be exhausted. So UM/UIM coverage is a good idea.
Comprehensive (Other than Collision)
This pays for damage OTHER than collision with another vehicle or object. You need to pay your deductible first then your comprehensive coverage will pay.
Comprehensive insurance covers claims like hail damage, damage from a tornado or hurricane, hitting a bird, damage from flooding and damage from getting keyed. The maximum amount your auto insurance company will pay is the actual cash value, so if the vehicle’s value is low consider removing comprehensive coverage.
Liability car insurance
This provides protection from damages or injuries you inflict on other people or property in an accident. It consists of three limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. As an example, you may have liability limits of 100/300/100 which means a limit of $100,000 per injured person, a limit of $300,000 in injury protection per accident, and a total limit of $100,000 for damage to vehicles and property.
Liability can pay for things such as repair bills for other people’s vehicles, court costs, bail bonds and legal defense fees. How much coverage you buy is a personal decision, but it’s cheap coverage so purchase as large an amount as possible. South Dakota requires drivers to carry at least 25,000/50,000/25,000 but you should think about purchasing higher limits.
Quote often and quote early
You just read a lot of ways to compare auto insurance prices online. The key concept to understand is the more providers you compare, the more likely it is that you will get a better rate. You may even find the most savings is with some of the lesser-known companies. These smaller insurers can often insure niche markets at a lower cost than their larger competitors like Geico and State Farm.
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 an insured dropped liability coverage limits only to discover later that a couple dollars of savings turned into a financial nightmare. The ultimate goal is to purchase plenty of coverage at the best price.