Are you at wits end from wondering where the money will come from each month for car insurance? You have the same problem as most other people in Minnesota. Companies like State Farm, Allstate, GEICO and Progressive continually bombard you with ad campaigns and it is challenging if not impossible to ignore the flashy ads and find the best price available.
If you currently have a car insurance policy, you will be able to reduce your rates substantially using these tips. Buying car insurance in Rosemount is not rocket science. But Minnesota car owners must comprehend how insurance companies market on the web and take advantage of how the system works.
Car insurance quotes and discounts
Insurance can be prohibitively expensive, but companies offer discounts to reduce the price significantly. Certain credits will be shown at the time of purchase, but a few need to be asked about prior to receiving the credit.
- ABS Brakes – Vehicles that have anti-lock braking systems have fewer accidents and earn discounts up to 10%.
- Responsible Driver Discounts – Insureds who avoid accidents can pay as much as 50% less than less cautious drivers.
- Telematics Discount – Drivers that enable their car insurance company to analyze their driving habits through the use of a telematics system like Allstate’s Drivewise could save a few bucks if they have good driving habits.
- No Charge for an Accident – Not really a discount, but some companies like Liberty Mutual and GEICO permit an accident without the usual rate increase so long as you haven’t had any claims for a specific time period.
- Military Deployment Discount – Being on active deployment in the military could be rewarded with lower car insurance rates.
- Driver’s Education for Students – Require your teen driver to successfully complete driver’s ed class in school.
- Organization Discounts – Participating in a civic or occupational organization in Rosemount is a simple method to lower premiums when shopping for car insurance.
- Driver Training Discounts – Taking part in a safe driver class could earn you a small percentage discount and make you a better driver.
- Discount for Life Insurance – Larger insurance companies have better car insurancerates if you take out auto and life insurance together.
- Save with More Vehicles Insured – Buying insurance for primary and secondary vehicles with the same company can reduce the rates for all insured vehicles.
You should keep in mind that most of the big mark downs will not be given to all coverage premiums. The majority will only reduce the price of certain insurance coverages like collision or personal injury protection. Despite the appearance that you could get a free car insurance policy, car insurance companies aren’t that generous.
Larger car insurance companies and a partial list of their discounts are shown below.
- State Farm has discounts for passive restraint, anti-theft, good driver, accident-free, and safe vehicle.
- GEICO has savings for multi-policy, federal employee, seat belt use, good student, driver training, and anti-theft.
- Progressive discounts include multi-policy, continuous coverage, homeowner, multi-vehicle, online quote discount, and good student.
- 21st Century may include discounts for early bird, theft prevention, teen driver, 55 and older, defensive driver, and student driver.
- American Family offers premium reductions for defensive driver, TimeAway discount, mySafetyValet, accident-free, Steer into Savings, good driver, and multi-vehicle.
- The Hartford offers discounts including air bag, good student, anti-theft, vehicle fuel type, and driver training.
- AAA policyholders can earn discounts including good student, education and occupation, pay-in-full, multi-car, good driver, anti-theft, and multi-policy.
If you want , ask every insurance company which discounts they offer. Some discounts might not apply in your state. To find car insurance companies that offer discounts in Rosemount, click here.
Why smart buyers pay lower rates in Rosemount
Many factors are taken into consideration when you get a price on insurance. A few of the factors are predictable like an MVR report, but others are less apparent like your continuous coverage or your commute time. Consumers need to have an understanding of a few of the rating criteria that go into determining the rates you pay for car insurance. If you have a feel for what controls the rates you pay, this allows you to make good choices that could result in much lower annual insurance costs.
The factors shown below are a few of the “ingredients” used by companies to determine prices.
- Prevent theft and save – Choosing to buy a car that has a built-in theft deterrent system can get you a discount on your car insurance. Theft prevention features like OnStar, LoJack tracking, and tamper alarms all help stop vehicle theft.
- Raising coverage deductibles saves money – Insurance for physical damage, termed comprehensive and collision coverage on your policy, is used to repair damage to your car. Examples of some claims that would be covered are colliding with a building, hitting a deer, and damage from a fallen tree branch. The deductibles are the amount of money you are willing to pay if the claim is covered. The larger the amount you’re willing to pay, the better rate you will receive.
- Only buy extra policy coverages you need – There are quite a few add-on coverages that you can get tricked into buying but may not be useful. Insurance for things like rental car coverage, accident forgiveness, and membership fees are some examples. These may sound like a good investment initially, but if you don’t need them think about removing them and cutting costs.
- Stay claim-free and lower prices – Car insurance companies in Minnesota generally give the best rates to policyholders who only file infrequent claims. If you tend to file frequent claims, you can expect increased rates or even have your policy non-renewed. Insurance coverage is designed for major claims that would cause financial hardship.
- More performance means higher rates – The performance level of the car, truck or SUV you are buying insurance for makes a substantial difference in your premium level. The lowest rates will generally be found on low performance passenger cars, but there are many factors that impact the final cost.
- Drive fewer miles and save – The more you drive in a year’s time the higher the price you pay to insure it. Most insurance companies calculate rates based on how the vehicle is used. Vehicles not used for work or commuting get more affordable rates than vehicles that are driven to work every day. Ask your agent if your vehicle rating shows the proper vehicle usage.
- Multiple policies with one company can save – Some insurance companies give a discount to buyers that buy multiple policies such as combining an auto and homeowners policy. Even though this discount sounds good, you still need to shop around to ensure the best deal. Drivers may still save money by buying insurance from more than one company.
- Having a spouse equates to better prices – Being married may earn you lower rates on car insurance. Having a significant other is viewed as being more financially stable it has been statistically shown that being married results in fewer claims.
Some additional reading
Additional information can be found on the website for the Minnesota Department of Commerce through this link. Minnesota consumers can download brochures, read consumer alerts, report car insurance fraud, and find a variety of consumer forms.
You can lower your rates
We covered many ideas to shop for car insurance online. The key concept to understand is the more rate comparisons you have, the better your comparison will be. Drivers may discover the best prices are with the least-expected company. Some small companies often have lower rates on specific markets than their larger competitors like State Farm and Allstate.
Budget-conscious car insurance can be bought on the web and from local insurance agents, so you should compare both in order to have the best chance of saving money. Some car insurance companies may not have the ability to get a quote online and many times these smaller providers only sell coverage through local independent agencies.
As you prepare to switch companies, do not buy poor coverage just to save money. Too many times, an insured dropped physical damage coverage and discovered at claim time they didn’t have enough coverage. Your goal should be to buy the best coverage you can find at the best possible price, but do not skimp to save money.