Are you a victim of an overpriced auto insurance policy? Trust us when we tell you you’re not the only one. Insurance companies such as State Farm, Allstate, GEICO and Progressive continually hit you with catchy ads and it can be hard to see through the deception and take the time to shop coverage around.
It’s smart to compare prices once or twice a year because rates tend to go up over time. Even if you got the best rates last year you can probably find a better price now. So just forget all the misinformation about auto insurance because I’m going to teach you the tricks you need to know to properly buy coverages and cut your premium.
Cut your auto insurance rates with discounts
Auto insurance companies don’t always list every discount very clearly, so we took the time to find both well-publicized and also the lesser-known auto insurance savings. If you’re not getting every credit you deserve, you’re paying more than you need to.
- Safe Driver Discount – Insureds without accidents may save up to 50% more than their less cautious counterparts.
- Clubs and Organizations – Being a member of a qualifying organization could qualify you for a break on your policy.
- Braking Control Discount – Cars that have steering control and anti-lock brakes are safer to drive and qualify for as much as a 10% discount.
- Drivers Education – Make teen driver coverage more affordable by requiring them to complete a driver education course if offered at their school.
- Use Seat Belts – Requiring all passengers to wear their seat belts could save 15% off the personal injury premium cost.
- Federal Government Employee – Simply working for the federal government can earn a discount up to 10% with a few auto insurance companies.
- Military Rewards – Having a deployed family member could be rewarded with lower premiums.
- Early Switch Discount – Select companies give a discount for switching policies before your current policy expires. It’s a savings of about 10%.
- Pay Upfront and Save – If you pay your bill all at once instead of making monthly payments you may reduce your total bill.
It’s important to understand that most discount credits are not given to the overall cost of the policy. Most only reduce the cost of specific coverages such as medical payments or collision. Even though it may seem like you could get a free auto insurance policy, companies don’t profit that way.
For a list of insurers who offer auto insurance discounts in Georgia, click here to view.
Learn How to Buy Auto Insurance Cheaper
It’s important that you understand the factors that come into play when calculating your auto insurance rates. Having a good understanding of what controls the rates you pay allows you to make educated decisions that may reward you with big savings.
- Special features that cut premiums – Owning a car with anti-theft technology or alarm system can help lower your rates. Anti-theft devices such as GM’s OnStar, tamper alarm systems and vehicle immobilizers can help prevent your vehicle from being stolen.
- Where you reside plays a part – Living in a rural area has it’s advantages when buying auto insurance. Fewer people means reduced accidents and a lower car theft rate. Urban drivers tend to have congested traffic and longer commute times. Longer commute distances translates into higher accident risk.
- Careful drivers pay lower rates – A bad driving record has a lot to do with how much you pay for insurance. Even one citation can boost insurance rates by as much as thirty percent. Careful drivers receive lower rates than people who have multiple driving citations. If you have severe violations like reckless driving, hit and run or driving under the influence may find they need to file a SR-22 with the DMV in their state in order to drive a vehicle legally.
- Protect yourself with liability coverage – Your policy’s liability coverage is the coverage that protects you in the event that you are found liable for damages caused by your negligence. Liability insurance provides you with a defense in court which can cost thousands of dollars. Liability is cheap as compared to coverage for physical damage, so do not cut corners here.
- Proper usage rating affects rates – The higher the mileage driven in a year the higher your rates will be. Almost all companies apply a rate determined by how the vehicle is used. Autos not used for work or commuting can get a lower rate than vehicles that are driven to work every day. Ask your agent if your auto insurance declarations sheet properly reflects the correct usage for each vehicle, because it can save money.
- Pay less if you’re married – Having a wife or husband actually saves money on auto insurance. It translates into being more responsible and it’s proven that married couples file fewer claims.
Drivers who switch save $426 a year? Really?
Consumers constantly see and hear ads for the lowest price auto insurance by companies like 21st Century, Allstate and State Farm. They all seem to say the same thing of big savings after switching to them.
But how can every company make the same claim?
Different companies have a certain “appetite” for the driver they prefer to insure. A good example of a profitable customer could be between the ages of 30 and 50, owns a home, and has excellent credit. Any driver who matches those parameters receives the best rates and most likely will save quite a bit of money when switching.
Potential insureds who don’t measure up to the requirements will have to pay higher premiums and this can result in business going elsewhere. The ad wording is “people who switch” not “people who quote” save money. That’s why companies can state the savings. Because of the profiling, you should get as many comparisons as possible. It is impossible to predict which company will fit your personal profile best.
Additional detailed information is available at the Georgia Insurance and Safety Fire Commissioner website. Georgia drivers can download brochures, view a list of available companies, and file complaints about an insurance agent or broker.
Keep this in mind
Cheap auto insurance is available both online as well as from independent agents in Sandy Springs, and you need to price shop both to have the best rate selection. Some companies don’t offer you the ability to get quotes online and usually these smaller companies provide coverage only through local independent agents.
As you restructure your insurance plan, don’t be tempted to buy lower coverage limits just to save a few bucks. In too many instances, drivers have reduced full coverage only to regret at claim time that the small savings ended up costing them much more. Your aim should be to buy the best coverage you can find at the best price, not the least amount of coverage.
We just covered many ways to reduce auto insurance prices online. The key concept to understand is the more times you quote, the better your comparison will be. Consumers could even find that the lowest premiums are with a small local company. Regional companies often have lower prices on specific markets as compared to the big name companies such as Progressive and GEICO.