Nobody looks forward to buying auto insurance, in particular when the price is too high.
Drivers have multiple insurance companies to buy insurance from, and although it’s nice to have a selection, having more insurance companies makes it harder to compare rates.
It’s a good idea to do rate comparisons every six months because prices fluctuate regularly. Just because you found the lowest rates a few years ago there is a good chance you can find better rates now. Starting now, forget anything you know (or think you know) about auto insurance because we’re going to show you one of the best ways to find better rates and still maintain coverage.
Cut your auto insurance rates with discounts
Car insurance companies do not advertise every discount very clearly, so here is a list some of the more common and the harder-to-find ways to save on auto insurance.
- Paperwork-free – A handful of insurance companies may give you up to $50 just for signing your application over the internet.
- Bundle and Save – If you insure your home and vehicles with one insurance company you could get a discount of approximately 10% to 15%.
- Seat Belts Save – Using a seat belt and requiring all passengers to wear their seat belts can save 10% or more on the medical payments or PIP coverage costs.
- Sign Early and Save – Some companies give discounts for switching to them prior to your current policy expiration. It can save you around 10%.
- Own a Home – Owning a home in Corinth may trigger a auto insurance policy discount because owning a home demonstrates responsibility.
- Payment Discounts – If you pay your bill all at once instead of paying each month you can actually save on your bill.
- Drive Safe and Save – Drivers who don’t get into accidents can get discounts for up to 45% lower rates than less cautious drivers.
- Good Student – Performing well in school can be rewarded with saving of up to 25%. Earning this discount can benefit you well after school through age 25.
It’s important to understand that most discounts do not apply to the entire policy premium. Some only apply to the price of certain insurance coverages like medical payments or collision. Just because it seems like all the discounts add up to a free policy, it doesn’t quite work that way.
For a list of insurance companies who offer auto insurance discounts in Corinth, click here to view.
Smart Buyers can Save Money
An important part of buying insurance is that you know the factors that help determine the price you pay for auto insurance. Knowing what determines base rates empowers consumers to make smart changes that can help you get lower auto insurance prices.
The following are a partial list of the pieces used by your company to calculate your rates.
- What type of vehicle do you drive? – The performance of the car you drive makes a significant difference in determining your rates. Small economy passenger vehicles receive the most favorable rates, but other factors influence the final cost greatly.
- High deductibles save money – Physical damage coverage, otherwise known as comp (or other than collision) and collision, is used to repair damage to your car. Some instances where coverage would apply would be a windshield shattered by a rock, vandalism, and windstorm damage. Deductibles for physical damage are how much you are required to spend out-of-pocket in the event of a claim. The higher the amount you are required to pay out-of-pocket, the less your auto insurance will be.
- How many coverages with the same company – Most auto insurance companies provide better rates to insureds who consolidate policies with them such as combining an auto and homeowners policy. Discounts can amount to ten or even up to twenty percent in some cases. If you currently are using one company, you still need to shop around to verify if the discount is saving money.
- Do you work long hours in a high stress job? – Did you know your occupation can influence how much you pay for auto insurance? Occupations such as real estate brokers, executives and financial analysts are shown to have higher average rates because of high stress and long work days. Conversely, occupations such as scientists, engineers and homemakers pay the least.
- Marriage pays dividends – Having a wife or husband helps lower the price on your auto insurance policy. Having a significant other means you’re more responsible it has been statistically shown that being married results in fewer claims.
- Don’t let your coverage lapse – Driving your car without having proper coverage can get your license suspended and you will pay a penalty because you let your coverage lapse. And not only will your rates increase, failure to provide proof of insurance will get you a steep fine or even jail time.
- High crash test scores lower rates – Cars with high safety ratings can get you lower premiums. Safe vehicles have better occupant injury protection and better occupant protection translates into savings for insurance companies and thus lower rates.
- Don’t buy coverages you don’t need – There are a ton of additional coverages you can purchase when buying auto insurance. Things like personal injury protection, better glass coverage and motor club memberships are examples of these. They may seem good initially, but if you don’t need them remove them from your policy.
The fine print in auto insurance ads
Auto insurance providers like Allstate and Progressive regularly use television and radio advertisements. They all have a common claim that you can save if you move your policy. How can each company make almost identical claims?
All companies are able to cherry pick for the driver that is profitable for them. A good example of a profitable customer could be over the age of 40, has no prior claims, and has a short commute. A driver who fits that profile receives the best rates and most likely will save a lot of money.
Drivers who do not match these standards will be charged higher rates and this can result in the driver buying from a lower-cost company. Company advertisements say “people who switch” not “everyone that quotes” save that much money. That’s the way insurance companies can confidently state the savings. That is why you need to get as many comparisons as possible. You cannot predict which auto insurance company will fit your personal profile best.
More tips and info about auto insurance can be read at the Mississippi Insurance Department website. Mississippi consumers can download brochures, discover disciplinary actions, read state legal mandates and laws, and find out which companies have the most complaints.
Keep this in mind
Affordable auto insurance can be sourced both online as well as from independent agents in Corinth, so compare prices from both to get a complete price analysis. Some insurance companies don’t offer you the ability to get quotes online and most of the time these small, regional companies sell through independent agents.
When you buy insurance online, don’t be tempted to buy less coverage just to save a little money. Too many times, an accident victim reduced collision coverage to discover at claim time that they should have had better coverage. Your goal should be to buy enough coverage at the best price while not skimping on critical coverages.