Did you fall for a flashy sales pitch and buy an overpriced car insurance policy? Trust us, many Peoria consumers feel financially strained by their car insurance policy.
You have so many auto insurance companies to choose from, and although it’s nice to have multiple companies, having more auto insurance companies makes it harder to compare company pricing.
Consumers should take time to price shop coverage every six months due to the fact that insurance rates change quite often. Even if you think you had the lowest rates a year ago there is a good chance you can find better rates now. You’ll find quite a bit of inaccurate information about car insurance on the internet, so with this article, you’re going to get a lot of great tips on how to stop overpaying for insurance.
How insurance companies determine rates
Consumers need to have an understanding of some of the elements that play a part in calculating the price you pay for car insurance. Knowing what determines base rates empowers consumers to make smart changes that could result in big savings.
- Males pay more for insurance – The statistics show that women are safer drivers than men. That doesn’t necessarily mean that men are WORSE drivers than women. Women and men tend to get into accidents in similar percentages, but men cause more damage. Men also receive more costly citations such as DWI and reckless driving. Young males tend to get in the most accidents and therefore have the most expensive car insurance rates.
- Special features that cut premiums – Driving a car with a theft deterrent system can get you a discount on your car insurance. Theft prevention features such as GM’s OnStar, tamper alarm systems and vehicle immobilizers all hinder your car from being stolen.
- Poor driving leads to higher costs – Your driving record has a big impact on rates. Even a single moving violation may increase your cost twenty percent or more. Drivers with clean records have lower premiums than people who have multiple driving citations. Drivers who get severe violations like hit and run, DWI or reckless driving convictions may be required to file a SR-22 with their state DMV in order to drive a vehicle legally.
- Too many car insurance claims drive up costs – If you tend to file frequent claims, you can pretty much guarantee higher rates. Companies in Arizona provide lower rates to policyholders who are claim-free. Insurance coverage is meant to be used in the event of the large, substantial claims.
- Marriage pays dividends – Having a wife or husband helps lower the price when buying car insurance. It usually means you are more mature and responsible and it’s proven that drivers who are married are more cautious.
- Older drivers save more – Teen drivers in Arizona are known to get distracted easily when driving so they pay higher car insurance rates. Adding a teen driver to your policy can be quite pricey. More mature drivers are more responsible, file fewer claims and are safer drivers.
Cut your premium with discounts
Companies that sell car insurance don’t necessarily list every discount in an easy-to-find place, so we break down both the well known and the more hidden car insurance savings.
- Club Memberships – Belonging to a professional or civic organization could qualify you for a break on your policy.
- E-sign – Certain companies will give a small break just for signing your application digitally online.
- Federal Employees – Simply working for the federal government can earn a discount up to 10% with certain companies.
- Drivers Education – Have your child enroll in driver’s education in high school.
- Multiple Vehicles – Having multiple vehicles with the same company may reduce the rate for each vehicle.
- Bundle and Save – If you insure your home and vehicles with one insurance company you may save at least 10% off all policies.
- Drive Safe and Save – Insureds without accidents may receive a discount up to 45% less than less cautious drivers.
It’s important to understand that many deductions do not apply to the overall cost of the policy. A few only apply to individual premiums such as comprehensive or collision. So when it seems like having all the discounts means you get insurance for free, companies wouldn’t make money that way.
For a list of insurance companies who offer car insurance discounts in Peoria, follow this link.
For more Arizona car insurance information
More detailed Arizona car insurance information is available at the Arizona Department of Insurance website. Arizona drivers can file complaints about an insurance agent or broker, discover disciplinary actions, and file complaints about a company.
More comparisons equals lower rates
We covered many ideas to get a better price on car insurance. The most important thing to understand is the more quotes you get, the higher the chance of saving money. Drivers may discover the lowest priced car insurance comes from a smaller regional carrier. These companies may often insure only within specific states and give getter rates than the large multi-state companies such as Progressive or GEICO.
When shopping online for car insurance, make sure you don’t buy lower coverage limits just to save a few bucks. There have been many cases where an insured dropped full coverage only to discover later that the savings was not a smart move. Your strategy should be to buy the best coverage you can find at an affordable rate while still protecting your assets.