No sane person looks forward to paying premiums for auto insurance, especially when they are aware that the cost is too high. There are many insurance companies to insure vehicles with, and although it’s a good thing to have a selection, having more car insurance companies makes it harder to compare rates and find the lowest cost auto insurance.
Consumers need to compare rates once or twice a year due to the fact that insurance prices change frequently. Even if you got the lowest price a couple years back you may be paying too much now. There is a lot of bad advice regarding auto insurance online, but we’re going to give you some solid techniques on how to stop overpaying for insurance.
Georgia auto insurance discounts
Buying auto insurance is not cheap, but there are discounts available to reduce the price significantly. Many of these discounts will be applied automatically when you get a quote, but lesser-known reductions have to be specially asked for before you will receive the discount.
- Pay Early and Save – If paying your policy premium upfront instead of making monthly payments you could save 5% or more.
- E-sign Discounts</strong – Many companies give back up to $50 on the web.
- Include Life Insurance and Save – Larger auto insurance companies have lower prices if you buy life insurance from them.
- Student Discounts – Performing well in school can save 20 to 25%. This discount can apply up to age 25.
- Discounts for Good Drivers – Insureds without accidents can get discounts for up to 45% lower rates compared to accident prone drivers.
Just know that most discounts do not apply to all coverage premiums. Most cut the price of certain insurance coverages like liability, collision or medical payments. So when it seems like you would end up receiving a 100% discount, insurance companies wouldn’t stay in business.
To find providers that offer many of these discounts in Georgia, follow this link.
Tailor your auto insurance coverage to you
When it comes to buying adequate coverage for your vehicles, there isn’t really a “perfect” insurance plan. Everyone’s needs are different so this has to be addressed. These are some specific questions can aid in determining if your situation could use an agent’s help.
- Am I covered when using my vehicle for business?
- Will I lose any money if I cancel my policy before it expires?
- What if I total my vehicle and owe more than it’s worth?
- When does my teenage driver need to be added to my policy?
- Are split liability limits better than a combined single limit?
- Do I need higher deductibles?
- Is pleasure use cheaper than using my vehicle to commute?
- Am I covered by my spouse’s policy after a separation?
If it’s difficult to answer those questions but you think they might apply to your situation, you may need to chat with an insurance agent. If you don’t have a local agent, take a second and complete this form or go to this page to view a list of companies. It’s fast, free and you can get the answers you need.
Do drivers who switch really save?
Georgia drivers can’t escape the ads that claim the lowest prices from the likes of Progressive, Geico, Allstate and State Farm. They all try to convey promises that you’ll save big if you switch to them.
How is it possible that every company can save you money? It’s all in the numbers.
All companies have specific characteristics for the type of driver that will be a good risk. A good example of this type of driver could be a female over age 40, has never had a policy lapse, and does not commute to work. Any new insured who matches that profile will get very good Thomasville rates and have a good chance to save quite a bit of money when switching.
Potential insureds who are not a match for the ideal profile must pay higher premiums which usually ends up with the customer buying from a different company. The trick is to say “drivers that switch” not “all people who quote” save that kind of money. That is how companies can truthfully make the claims of big savings.
This really emphasizes why it’s extremely important to do a rate comparison at every renewal. It’s just too difficult to predict which insurance companies will fit your personal profile best.
Auto insurance coverages 101
Understanding the coverages of your auto insurance policy can help you determine appropriate coverage and proper limits and deductibles. Auto insurance terms can be ambiguous and reading a policy is terribly boring. Below you’ll find the normal coverages available from auto insurance companies.
Medical payments and PIP coverage
Medical payments and Personal Injury Protection insurance provide coverage for bills like pain medications, hospital visits and X-ray expenses. The coverages can be used to fill the gap from your health insurance policy or if you are not covered by health insurance. Medical payments and PIP cover all vehicle occupants in addition to getting struck while a pedestrian. PIP is not an option in every state and gives slightly broader coverage than med pay
Comprehensive auto coverage
This coverage covers damage from a wide range of events other than collision. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage pays for things such as a broken windshield, hitting a bird, theft and fire damage. The highest amount a auto insurance company will pay at claim time is the market value of your vehicle, so if your deductible is as high as the vehicle’s value consider removing comprehensive coverage.
Auto liability insurance
This coverage will cover damages or injuries you inflict on other’s property or people. Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. Your policy might show policy limits of 50/100/50 which stand for $50,000 bodily injury coverage, a per accident bodily injury limit of $100,000, and a limit of $50,000 paid for damaged property. Alternatively, you may have one number which is a combined single limit which provides one coverage limit without having the split limit caps.
Liability coverage pays for claims like medical services, pain and suffering, loss of income, structural damage and bail bonds. How much liability should you purchase? That is up to you, but it’s cheap coverage so purchase as large an amount as possible. Georgia requires minimum liability limits of 25,000/50,000/25,000 but it’s recommended drivers buy better liability coverage.
Coverage for collisions
This covers damage to your vehicle resulting from a collision with an object or car. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision coverage protects against claims like hitting a parking meter, scraping a guard rail, crashing into a building, sideswiping another vehicle and rolling your car. Collision coverage makes up a good portion of your premium, so consider dropping it from vehicles that are older. Another option is to raise the deductible to bring the cost down.
UM/UIM (Uninsured/Underinsured Motorist) coverage
This protects you and your vehicle from other motorists when they either are underinsured or have no liability coverage at all. Covered losses include injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Since many Georgia drivers only carry the minimum required liability limits (25/50/25 in Georgia), their liability coverage can quickly be exhausted. That’s why carrying high Uninsured/Underinsured Motorist coverage should not be overlooked. Normally the UM/UIM limits are identical to your policy’s liability coverage.
More information is available on the website for the Georgia Insurance and Safety Fire Commissioner found here. Georgia drivers can view a list of available companies, find disaster information, and read state legal mandates and laws.
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Smart shoppers get results
In this article, we covered some good ideas how to lower your auto insurance prices. The key concept to understand is the more rate quotes you have, the higher your chance of finding . Consumers could even find that the biggest savings come from a small local company. These smaller insurers can often provide lower rates in certain areas than their larger competitors like Allstate and Progressive.
As you shop your coverage around, don’t be tempted to buy poor coverage just to save money. There are a lot of situations where consumers will sacrifice comprehensive coverage or liability limits and discovered at claim time they didn’t have enough coverage. Your strategy should be to purchase plenty of coverage for the lowest price, not the least amount of coverage.
Some insurance companies may not provide the ability to get a quote online and most of the time these small insurance companies provide coverage only through independent agencies. Cost effective auto insurance is definitely available online and with local Thomasville insurance agents, and you should be comparing both in order to have the best price selection to choose from.