Tired of trying to scrape together enough money to buy car insurance? You’re in the same situation as millions of other consumers.
Insurance companies such as GEICO, Farmers Insurance and State Farm continually bombard you with catchy ads and it can be hard to see past the geckos and flying pigs and effectively compare rates to find the best deal.
It is always a good idea to do rate comparisons occasionally because rates change quite often. Even if you got the best rates a year ago the chances are good that you can find a lower rate today. There is too much inaccurate information about auto insurance on the internet, so I’m going to show you some solid techniques on how to stop overpaying for insurance.
Policy discounts you shouldn’t miss
Auto insurance companies don’t always publicize all available discounts in an easy-to-find place, so the following is a list of some of the best known and also the lesser-known auto insurance savings.
- Passive Restraints and Air Bags – Vehicles with factory air bags or motorized seat belts can get savings up to 30%.
- No Charge for an Accident – Certain companies will forgive one accident before your rates go up so long as you haven’t had any claims for a certain period of time.
- Organization Discounts – Being a member of a qualifying organization may earn a discount on auto insurance.
- Military Rewards – Being on active duty in the military could mean lower rates.
- Low Mileage Discounts – Keeping the miles down can earn lower rates on the low mileage vehicles.
It’s important to note that most discount credits are not given to the entire policy premium. Most only cut the cost of specific coverages such as collision or personal injury protection. Even though it may seem like it’s possible to get free car insurance, it doesn’t quite work that way.
For a list of companies with discount auto insurance rates in Milford, click here to view.
You have some control over your rates
Smart consumers have a good feel for some of the elements that play a part in calculating the price you pay for auto insurance. Having a good understanding of what controls the rates you pay enables informed choices that may reward you with better auto insurance rates.
- Please use or commuting – Driving more miles every year the more you will pay for auto insurance. Almost all companies rate vehicles based on their usage. Cars that are left in the garage qualify for better rates than vehicles that are driven to work every day. Verify your auto insurance coverage shows the proper vehicle usage.
- What are your deductibles? – Insurance for physical damage to your car, otherwise known as comp (or other than collision) and collision, is used to repair damage to your car. A few examples of covered claims could be running into the backend of another car, collision with an animal, or theft. The deductibles are how much you are willing to pay before your auto insurance pays a claim. The more you have to pay, the less your auto insurance will be.
- What type of vehicle do you drive? – The type of vehicle you are buying insurance for makes a huge difference in your rates. Small economy passenger cars generally receive the lowest base rates, but the cost you end up paying is determined by many additional factors.
- Your credit rating is important – Having a bad credit score is a huge factor in determining your rates. Drivers with high credit ratings tend to file fewer claims and have better driving records than drivers with lower ratings. So if your credit is low, you could be paying less to insure your by improving your rating.
- Don’t buy coverages you don’t need – There are quite a few add-on coverages that can waste your money on your policy. Things like vanishing deductibles, accident forgiveness and membership fees are examples of these. They may seem like a good idea initially, but your needs may have changed so remove them from your policy.
- Older drivers save more – Older drivers are more responsible, tend to cause fewer accidents and get fewer tickets. Teenage drivers tend to be less responsible behind the wheel therefore auto insurance rates are much higher.
Do auto insurance companies bend the truth?
Companies like 21st Century, Allstate and State Farm regularly use television and radio advertisements. All the ads have a common claim of big savings if you move your coverage to them. How can each company make the same claim?
All companies have a preferred profile for the driver that is profitable for them. For example, a desirable insured could be between the ages of 40 and 55, a clean driving record, and chooses high deductibles. A driver who matches those parameters will get the preferred rates and is almost guaranteed to save a lot of money.
Drivers who are not a match for the requirements will have to pay a more expensive rate which usually ends up with the driver buying from a lower-cost company. The ads state “drivers who switch” but not “drivers who get quotes” save that much. That’s the way companies can claim big savings. Because of the profiling, it’s extremely important to get quotes from several different companies. It’s impossible to know which insurance companies will provide you with the cheapest rates.
Learn more today
More tips and info about auto insurance can be read at the Delaware Department of Insurance website. Visitors are able to get help finding coverage, file complaints about a company, read consumer alerts, and discover disciplinary actions.
Shop smart and save
When trying to cut insurance costs, do not buy poor coverage just to save money. In many instances, drivers have reduced uninsured motorist or liability limits and found out when filing a claim that it was a big error on their part. Your focus should be to buy the best coverage you can find at a price you can afford while not skimping on critical coverages.
Lower-priced auto insurance can be sourced online and with local Milford insurance agents, and you need to comparison shop both to get a complete price analysis. Some auto insurance companies do not offer the ability to get a quote online and usually these small, regional companies provide coverage only through local independent agents.