How to Know You’re Throwing Money Away for Auto Insurance in Colorado Springs

Tired of being strong-armed each month for car insurance? You are no different than many other Colorado drivers.

Big companies like Allstate, Progressive and Geico continually bombard you with ad campaigns and it is challenging if not impossible to see through the cute green geckos and mayhem and do the work needed to find the best deal.

If you currently have a car insurance policy, you will most likely be able to save some money using these tips. Finding the best rates in Colorado Springs is quite easy. Nevertheless, Colorado drivers need to have an understanding of how the larger insurance companies market insurance on the web because it can help you find the best coverage.

Why your price might be higher

An important part of buying insurance is that you know some of the elements that play a part in calculating your auto insurance rates. Understanding what determines base rates helps enable you to make changes that will entitle you to much lower annual insurance costs.

Shown below are some of the items that factor into prices.

  • Lower deductibles cost more – Insurance for physical damage to your car, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. Examples of covered claims would be colliding with a building, damage caused by hail, or theft. Deductibles for physical damage are how much you are willing to pay before your auto insurance pays a claim. The more expense you’re willing to pay, the bigger discount you will receive.
  • Better credit means lower rates – Your credit rating is a large factor in your rate calculation. People with excellent credit tend to be more responsible than drivers with lower ratings. So if your credit rating can use some improvement, you could pay less to insure your by improving your credit score.
  • Lower rates with optional equipment – Choosing a vehicle with an alarm system can help lower your rates. Anti-theft features like GM’s OnStar, tamper alarm systems and vehicle immobilizers can thwart car theft.
  • An active claims history can cost you – If you frequently file small claims, you can look forward to either policy cancellation or increased premiums. Insurance companies in Colorado give discounts to people who do not rely on their insurance for small claims. Your insurance policy is meant to be used in the event of larger claims.
  • Younger drivers pay higher rates – Teen drivers in Colorado tend to get distracted easily when behind the wheel so auto insurance rates are higher. Older insureds are more responsible, tend to file fewer claims and receive fewer citations.

Auto Insurance Comparison Rates in Colorado Springs

Most major insurance companies provide coverage prices online. Getting quotes is quite simple as you simply type in your coverage preferences as detailed in the form. When the form is submitted, their rating system automatically orders your driving and credit reports and quotes a price. Quoting online makes it a lot easier to compare rates but the time it takes to visit several different sites and fill out multiple forms can be a bit tiresome and repetitive. But it’s absolutely necessary to perform this step if you are searching for better auto insurance pricing.

The smarter way to find better auto insurance pricing is to use a quote form that gets prices from more than one company. The form is fast, requires much less work on your part, and makes quoting online a lot less work. Immediately after submitting the form, it is rated and you can choose any one of the resulting price quotes. If one or more price quotes are lower than your current rates, you can simply submit the application and purchase the new policy. This process can be completed in less than 10 minutes and can result in significant savings.

To save time and use this form to compare rates, click here and submit your coverage information. If you currently have coverage, we recommend you input coverages and limits exactly as shown on your declarations page. This ensures you are getting rate quotes using the same coverage and limits.<img class="alignright" style="padding-top:15px;" src="" alt="Colorado auto insurance“/>

Buyer beware of auto insurance advertising tricks

Auto insurance companies such as State Farm, Geico and Progressive continually stream ads on TV and radio. They all seem to say the same thing that you can save after switching your coverage to them. How do they all make almost identical claims? It’s all in the numbers.

All companies have a preferred profile for the driver that is profitable for them. An example of a driver they prefer might be over the age of 50, has no prior claims, and chooses high deductibles. Any driver who meets those qualifications is entitled to the best price and as a result will probably save a lot of money.

Potential insureds who don’t measure up to the “perfect” profile will be quoted more money which usually ends up with business going elsewhere. The ads state “customers that switch” not “everyone that quotes” save that kind of money. That’s why insurance companies can confidently make those claims. This emphasizes why you need to compare as many rates as you can. It is impossible to predict the company that will give you the biggest savings.

Do you qualify for discounts?

Companies offering auto insurance do not advertise every available discount very clearly, so the following is a list of some of the more common and the more hidden savings tricks you should be using.

  • Discount for Swiching Early – Select companies give a discount for buying a policy before your current policy expires. The savings is around 10%.
  • Save over 55 – Older drivers can possibly qualify for a small decrease in premiums.
  • Accident Waiver – Some insurance companies permit an accident before raising your premiums if you are claim-free for a certain period of time.
  • Resident Student – Youth drivers who attend school more than 100 miles from home without a vehicle on campus can be insured at a reduced rate.
  • Discount for New Cars – Buying coverage on a new vehicle can save up to 30% compared to insuring an older model.

A little note about advertised discounts, most discounts do not apply to the overall cost of the policy. Some only apply to the cost of specific coverages such as liability, collision or medical payments. So when it seems like all the discounts add up to a free policy, you won’t be that lucky.

Don’t assume everyone needs the same coverage

When choosing the best auto insurance coverage, there really is no “perfect” insurance plan. Your needs are not the same as everyone else’s so this has to be addressed. Here are some questions about coverages that might point out whether you would benefit from an agent’s advice.

  • Am I covered when driving a rental car?
  • Are my tools covered if they get stolen from my vehicle?
  • Do I really need UM/UIM coverage?
  • What happens if I owe more than my vehicle is worth?
  • Can I rate high risk drivers on liability-only vehicles?
  • Does my medical payments coverage pay my health insurance deductible?

If you don’t know the answers to these questions but you know they apply to you, then you may want to think about talking to a licensed insurance agent. If you don’t have a local agent, take a second and complete this form or you can go here for a list of companies in your area.

Colorado insurance quotes

Even more information can be found at the Colorado DORA Division of Insurance website. Colorado consumers can find out which companies have the most complaints, learn about insurance regulations, and file complaints about a company.

In conclusion

You just learned a lot of tips how to compare auto insurance prices online. The key concept to understand is the more quotes you get, the better your chances of lowering your rates. You may be surprised to find that the most savings is with some of the lesser-known companies. These companies can often insure niche markets at a lower cost than their larger competitors like State Farm, Geico and Nationwide.

Cost effective auto insurance can be sourced online as well as from independent agents in Colorado Springs, and you need to price shop both to have the best selection. Some insurance providers don’t offer online price quotes and most of the time these smaller companies sell through independent agents.

As you restructure your insurance plan, it’s not a good idea to skimp on critical coverages to save a buck or two. There have been many situations where an insured cut comprehensive coverage or liability limits only to find out that the few dollars in savings costed them thousands. The proper strategy is to purchase a proper amount of coverage at an affordable rate.