Are you tired of paying out the nose each month for car insurance? Your situation is no different than many other Tennessee consumers.
Many insurers compete for your hard-earned dollar, and it can be difficult to compare rates and get the best coverage at the cheapest price
Smart consumers take time to price shop coverage occasionally because prices are variable and change quite frequently. Just because you had the best rates two years ago there is a good chance you can find better rates now. There is a lot of wrong information about car insurance on the web, but with this article, you’re going to get the easiest ways to stop overpaying for insurance.
Pay less by taking advantage of discounts
Insurance can be prohibitively expensive, but discounts can save money and there are some available that you may not even be aware of. A few discounts will automatically apply at the time you complete a quote, but less common discounts must be specifically requested before they will apply.
- Defensive Driving Course – Completing a driver safety course could save 5% or more if you qualify.
- College Student – Youth drivers who are attending college and do not have a car can be insured at a reduced rate.
- Accident Waiver – Certain companies will forgive one accident without raising rates as long as you don’t have any claims for a set time period.
- Military Rewards – Being deployed with a military unit could be rewarded with lower premiums.
- Theft Prevention Discount – Vehicles with anti-theft systems are stolen less frequently and qualify for as much as a 10% discount.
- Discount for New Cars – Insuring a new car can cost up to 25% less because new vehicles have to meet stringent safety requirements.
- Drive Safe and Save – Drivers who avoid accidents may receive a discount up to 45% less than drivers with accidents.
- Sign Online – A handful of insurance companies may give you up to $50 for buying a policy and signing up online.
- Homeowners Discount – Simply owning a home may earn you a small savings because owning a home is proof that your finances are in order.
It’s important to note that many deductions do not apply to the entire policy premium. Most only apply to the cost of specific coverages such as comprehensive or collision. Just because it seems like adding up those discounts means a free policy, companies don’t profit that way. But any discount will help reduce your overall premium however.
For a list of providers offering car insurance discounts in Tennessee, click here to view.
Components of your insurance rates
An important part of buying insurance is that you know the rating factors that play a part in calculating the rates you pay for car insurance. When you know what positively or negatively influences your rates helps enable you to make changes that can help you get much lower annual insurance costs.
Shown below are some of the items that factor into your rates.
- Don’t sacrifice liability coverage – The liability section of your policy is the protection if you are found to be at fault for damages caused by your negligence. It provides for a legal defense starting from day one. Carrying liability coverage is mandatory and cheap compared to insuring for physical damage coverage, so buy as much as you can afford.
- Older drivers pay less – Teen drivers in Tennessee tend to be less responsible in a vehicle so car insurance rates are higher. Mature drivers tend to be more responsible, statistically cause fewer accidents and are safer drivers.
- Battle of the sexes – The statistics show that women are safer drivers than men. However, this does not mean women are BETTER drivers than men. They both are in accidents at a similar rate, but men have costlier accidents. Men also get cited for more serious violations such as DWI and reckless driving. Male drivers age 16 to 19 are the most expensive to insure and are penalized with high car insurance rates.
- Performance level impacts rates – The make and model of the car you own makes a huge difference in your rates. Lower performance four cylinder passenger cars usually have the lowest rates, but there are many factors that impact the final cost.
- Discounts for multiple policies – The majority of companies give discounts to policyholders who have multiple policies with them such as combining an auto and homeowners policy. Discounts can amount to anywhere from five to ten percent in most cases. If you currently are using one company, it’s still a good idea to comparison shop to make sure you are getting the best deal. Consumers may find a better deal by buying car insurance from a different company.
- Rate your vehicle for proper use – The more miles you rack up on your car every year the more you’ll pay to insure your vehicle. Almost all companies rate vehicles based on their usage. Cars that are left in the garage get more affordable rates as compared to vehicles used primarily for driving to work. Verify your car insurance policy is rated on how each vehicle is driven.
Your coverage should be tailored to you
When choosing coverage, there really is no best way to insure your cars. Coverage needs to be tailored to your specific needs so your insurance needs to address that. For instance, these questions may help you determine if your insurance needs might need professional guidance.
- Does liability extend to a camper or trailer?
- Can I rate high risk drivers on liability-only vehicles?
- Do I have coverage when making deliveries for my home business?
- What is high-risk coverage and where do I buy it?
- Do I have coverage for damage caused while driving under the influence?
- Should I buy only the required Tennessee minimum liability coverage?
- Does coverage extend to a rental car in a foreign country?
If you’re not sure about those questions but you think they might apply to your situation then you might want to talk to an agent. To find an agent in your area, simply complete this short form or click here for a list of car insurance companies in your area.
Don’t believe everything you hear
Companies like State Farm and Allstate consistently run ads on TV and radio. All the ads make the same claim that you’ll save big if you change to them. But how can every company make almost identical claims?
Insurance companies have a preferred profile for the driver they prefer to insure. For example, a profitable customer might be a mature driver, has no tickets, and drives less than 10,000 miles a year. A propective insured who meets those qualifications is entitled to the best price and therefore will save when they switch companies.
Consumers who don’t qualify for this ideal profile will be charged higher premiums which leads to the customer not buying. The ads state “customers that switch” not “everyone that quotes” save that kind of money. That is how insurance companies can make those claims.
That is why drivers should get a wide range of price quotes. It is impossible to predict the company that will give you the biggest savings.
More information can be found on the website for the Tennessee Department of Commerce and Insurance. Click here for link. Consumers can discover disciplinary actions, learn about insurance regulations, and report car insurance fraud.
Do the work, save more money
Affordable car insurance is possible both online and with local Dyersburg insurance agents, and you should compare price quotes from both so you have a total pricing picture. Some insurance providers do not offer online price quotes and usually these smaller companies provide coverage only through local independent agents.
You just learned a lot of tips how to lower your car insurance rates. The key concept to understand is the more quotes you get, the better your chances of lowering your rates. You may even find the best prices are with a small local company. Some small companies can often insure niche markets at a lower cost than the large multi-state companies such as Allstate or State Farm.