Are you a victim of an underperforming, overpriced car insurance policy? Believe me when I say you are not the only one feeling buyer’s remorse.
Numerous insurance companies battle for your hard-earned dollar, and it can be difficult to compare rates to find the lowest rate
If you have car insurance now, you stand a good chance to be able to save some money using this strategy. Buying car insurance in Ankeny is easy if you know what you’re doing. Although Iowa drivers must learn the way insurance companies price online insurance.
Verify you’re getting all your discounts
Auto insurance companies do not list every available discount in an easy-to-find place, so here is a list some of the more common as well as the least known car insurance savings.
- Passive Restraints – Vehicles equipped with air bags or automatic seat belts can get savings of up to 25% or more.
- Federal Employees – Employees or retirees of the government can save as much as 8% with select insurance companies.
- Fewer Miles Equal More Savings – Fewer annual miles could qualify for lower rates on the low mileage vehicles.
- Paperwork-free – A handful of insurance companies give back up to $50 simply for signing online.
- Discount for Good Grades – This discount can save 20 to 25%. Earning this discount can benefit you up until you turn 25.
- No Claims – Claim-free drivers pay much less compared to bad drivers.
- Drivers Ed for Students – Make teen driver coverage more affordable by requiring them to take driver’s ed class if it’s offered in school.
It’s important to understand that most credits do not apply to your bottom line cost. Some only reduce individual premiums such as liability and collision coverage. Even though it may seem like it’s possible to get free car insurance, it doesn’t quite work that way.
To see a list of providers with the best car insurance discounts in Iowa, follow this link.
Save Money with These Tips
An important part of buying insurance is that you know some of the elements that help determine the rates you pay for car insurance. Understanding what impacts premium levels empowers consumers to make smart changes that could result in lower car insurance prices.
The following are some of the factors used by your company to calculate premiums.
- Pay less after the wedding – Having a spouse actually saves money on your policy. Having a spouse is viewed as being more mature and responsible and it’s statistically proven that being married results in fewer claims.
- Do you need the policy add-ons? – There are a ton of extra coverages you can purchase when buying car insurance. Coverages for rental car reimbursement, better glass coverage and membership fees are some examples. These may sound like a good investment at first, but your needs may have changed so eliminate them to save money.
- Tickets mean higher rates – Whether or not you get tickets has a huge affect on how much you pay. Careful drivers tend to pay less for car insurance than bad drivers. Even one citation can boost insurance rates forty percent or more. Drivers with serious tickets like reckless driving, hit and run or driving under the influence are required to file a SR-22 with their state motor vehicle department in order to continue driving.
- Performance influences rates – The performance level of the vehicle you are buying insurance for makes a huge difference in how high your rates are. The lowest rates are for low performance passenger models, but other factors influence the final cost greatly.
- Don’t cancel a policy without a new one in place – Driving your car without having proper coverage is against the law and you will pay a penalty because you let your coverage lapse. And not only will your rates increase, but not being able to provide proof of insurance might get you a revoked license or a big fine.
Can you really save $437 a year?
Companies like Allstate, Geico and Progressive constantly bombard you with ads on TV and radio. All the ads make an identical promise of big savings if you switch your policy. How can each company make almost identical claims? It’s all in the numbers.
Insurance companies are able to cherry pick for the driver that earns them a profit. A good example of a profitable customer could possibly be over the age of 50, a clean driving record, and drives newer vehicles. Any new insured who fits that profile gets the lowest rates and is almost guaranteed to cut their rates substantially.
Potential insureds who do not match the “perfect” profile must pay higher premiums which usually ends up with the customer not buying. Company advertisements say “drivers who switch” not “everybody who quotes” save that much money. That’s why companies can truthfully advertise the way they do. This illustrates why you should get quotes from several different companies. It’s impossible to know which car insurance company will provide you with the cheapest rates.
More detailed Iowa car insurance information can be found at the Iowa Insurance Division website. Iowa consumers can read state legal mandates and laws, read enforcement actions against agents and companies, find out which companies have the most complaints, and read consumer alerts.
A little work can save a LOT of money
As you shop your coverage around, don’t be tempted to buy lower coverage limits just to save a few bucks. There are a lot of situations where drivers have reduced liability limits or collision coverage only to regret at claim time that their decision to reduce coverage ended up costing them more. Your aim should be to buy enough coverage at the best price while not skimping on critical coverages.
Cheap car insurance can be sourced both online as well as from independent agents in Ankeny, and you should compare price quotes from both in order to have the best chance of saving money. Some insurance companies don’t offer the ability to get a quote online and these small insurance companies work with independent agents.
In this article, we presented some good ideas how to compare car insurance prices online. It’s most important to understand that the more times you quote, the better chance you’ll have of finding lower rates. Consumers could even find that the lowest premiums are with an unexpected company. These smaller insurers may have significantly lower rates on certain market segments than the large multi-state companies such as Allstate or State Farm.