Are you intimidated by the sheer number of auto insurance choices in Hardwick? You’re not alone. Consumers have so many choices that it can be more work than you anticipated to find the best price.
Save big with these discounts
Car insurance can cost a lot, but there could be available discounts that you may not even be aware of. Certain discounts will be triggered automatically when you quote, but some must be asked about prior to receiving the credit. If you don’t get every credit available, you are throwing money away.
- Low Mileage Discounts – Keeping the miles down could qualify for better rates on cars that stay parked.
- Safe Driver Discount – Insureds without accidents can get discounts for up to 45% lower rates than drivers with accidents.
- Good Student Discount – A discount for being a good student can be rewarded with saving of up to 25%. The good student discount can last until age 25.
- Anti-theft Discount – Cars that have factory anti-theft systems help deter theft and earn discounts up to 10%.
- Paperless Signup – Certain companies may give you up to $50 for buying a policy and signing up over the internet.
- Accident Forgiveness – A few companies allow you one accident before hitting you with a surcharge so long as you haven’t had any claims for a certain period of time.
- Resident Student – Children who live away from home and do not have a car may be able to be covered for less.
- Save with a New Car – Buying coverage on a new vehicle can cost up to 25% less since new cars are generally safer.
- Life Insurance – Larger companies have lower rates if you buy life insurance.
Drivers should understand that many deductions do not apply to the entire cost. Most only cut the cost of specific coverages such as comp or med pay. So even though they make it sound like you would end up receiving a 100% discount, companies don’t profit that way. Any amount of discount will cut your premiums.
How insurance companies determine rates
It’s important that you understand some of the elements that play a part in calculating the price you pay for auto insurance. Understanding what influences your rates allows you to make educated decisions that may reward you with much lower annual insurance costs.
- Do you qualify for a multi-policy discount? – Many auto insurance companies give discounts to policyholders who have multiple policies with them in the form of a multi-policy discount. Even though this discount sounds good, it’s in your best interest to compare rates to confirm you are receiving the best rates possible.
- What are your deductibles? – Physical damage insurance, termed comprehensive and collision coverage on your policy, is used to repair damage to your car. Some instances where coverage would apply would be running into the backend of another car, collision with an animal, and rolling your vehicle. Deductibles for physical damage are how much you are required to spend out-of-pocket before a claim is paid by your company. The more expense you are required to pay out-of-pocket, the less your company will charge you for insurance.
- Men pay higher rates – Statistics show that men are more aggressive behind the wheel. That doesn’t necessarily mean that men are WORSE drivers than women. Both sexes cause accidents at a similar rate, but the men cause more damage. Men also statistically have more aggressive citations like reckless driving and DUI. Youthful male drivers are the most expensive to insure and therefore are the most expensive to insure.
- Do you have a high stress job? – Occupations like real estate brokers, architects and stock brokers have the highest rates because of high stress levels and lengthy work days. On the other hand, jobs such as actors, students and the unemployed get better rates.
Can you really save that much by switching?
Vermont consumers can’t ignore all the ads for cheaper car insurance by companies like State Farm, GEICO and Progressive. All the ads have a common claim that you can save if you switch to them.
How does each company make almost identical claims?
Different companies have a certain “appetite” for the type of customer that is profitable for them. A good example of a driver they prefer could be between 25 and 40, has no prior claims, and drives less than 7,500 miles a year. A driver who fits that profile is entitled to the best price and therefore will cut their rates substantially.
Drivers who don’t measure up to the “perfect” profile will have to pay higher rates which usually ends up with the driver buying from a lower-cost company. The ads state “drivers who switch” not “everyone that quotes” save money. That’s the way insurance companies can claim big savings.
Because of the profiling, you absolutely need to get a wide range of price quotes. It’s just too difficult to predict which company will provide you with the cheapest rates.
Additional auto insurance information is available on the Vermont Department of Financial Regulation website. Click here for link. Consumers can find disaster information, report car insurance fraud, and read state legal mandates and laws.
And the best car insurance company is…
The cheapest auto insurance can be bought both online and also from your neighborhood Hardwick agents, and you should compare price quotes from both to have the best chance of lowering rates. Some insurance companies may not provide online quoting and most of the time these small, regional companies sell through independent agents.
As you shop your coverage around, it’s a bad idea to reduce coverage to reduce premium. In many cases, someone sacrificed liability coverage limits and discovered at claim time that it was a big error on their part. Your goal should be to purchase a proper amount of coverage for the lowest price while still protecting your assets.
Drivers who switch companies do it for any number of reasons including not issuing a premium refund, policy cancellation, denial of a claim and even delays in paying claims. No matter why you want to switch, switching companies is not as hard as you think.