Expensive auto insurance can take a big chunk out of your bank account, especially in this economy. Comparison shopping is a great way to reduce premiums and put more money in your pocket.
Because you have many options when it comes to auto insurance, it is hard for the average consumer to find the best car insurance company.
It’s important to shop coverage around every six months because prices are rarely the same from one policy term to another. If you had the best price a few years ago other companies may now be cheaper. Ignore everything you know about auto insurance because you’re about to find out the proper way to save money, get proper deductibles and limits, all at the lowest rate.
Buying the best auto insurance in Lawrenceburg is simple if you know the tricks. Basically, every vehicle owner who shops for auto insurance should be able to find lower rates. Although Kentucky vehicle owners benefit from understanding the methods companies use to sell online and take advantage of how the system works.
Vehicle Insurance Comparison
The are a couple different ways to get quotes from auto insurance companies in your area. One of the best ways to find the cheapest insurance rates consists of shopping online. This can be done in a couple of different ways.
- The best way to compare a lot of rates at once would be an industry-wide quote request form (click to open form in new window). This method saves time by eliminating separate quotes for each company you want a rate for. A single form will get you rate comparisons from all major companies.
- A different way to compare prices is spending the time to visit each company’s website to complete their respective quote request forms. For example, let’s assume you want comparison quotes from State Farm, Progressive and Geico. To get rate quotes you would need to go to every website to enter your coverage information, which is why the first method is quicker. To view a list of companies in Lawrenceburg, click here.
Whichever way you use, be sure to compare apples-to-apples coverages with every price quote. If the quotes have different liability limits it will be impossible to determine the best price in Lawrenceburg. Slightly different insurance coverages could mean much higher rates. Just remember that quoting more will increase your chances of finding the best price.
Take advantage of discounts
Insurance can be prohibitively expensive, but discounts can save money and there are some available to cut the cost considerably. A few discounts will automatically apply when you quote, but lesser-known reductions have to be inquired about before you get the savings.
- Memberships – Being a member of a qualifying organization could trigger savings when buying auto insurance.
- Sign Online – Certain companies may give you up to $50 for buying your policy digitally online.
- New Vehicle Savings – Buying coverage on a new vehicle can cost up to 25% less because new vehicles have to meet stringent safety requirements.
- Student in College – Children living away from home attending college and do not have a car can receive lower rates.
- Anti-theft System – Vehicles equipped with anti-theft or alarm systems help deter theft and will save you 10% or more.
- Low Mileage – Fewer annual miles can qualify you for lower rates on the low mileage vehicles.
- Government Employees – Active or retired federal employment can save as much as 8% with certain companies.
As a disclaimer on discounts, most of the big mark downs will not be given to the entire policy premium. Some only reduce the cost of specific coverages such as medical payments or collision. Even though it may seem like having all the discounts means you get insurance for free, companies wouldn’t make money that way. But all discounts will bring down your overall premium however.
To choose providers with the best auto insurance discounts in Kentucky, click here to view.
Why your price might be higher
Smart consumers have a good feel for the different types of things that go into determining auto insurance rates. Having a good understanding of what determines base rates allows you to make educated decisions that could result in lower auto insurance prices.
- Better credit scores mean better rates – Your credit rating is a huge factor in determining your rates. People with high credit scores tend to be more responsible as compared to drivers with poor credit. So if your credit history can use some improvement, you could pay less to insure your by improving your credit score.
- Policy add-ons can waste money – There are many additional coverages that you can get tricked into buying on your auto insurance policy. Things like roadside assistance, accidental death and additional equipment coverage may be wasting your money. They may seem like a good idea when talking to your agent, but now you might not need them so remove them from your policy.
- Better crash test results mean better rates – Safer cars are cheaper to insure. Safer cars reduce injuries and any reduction in injury severity translates into fewer and smaller insurance claims and lower rates for you.
- Rural vs Urban Areas – Choosing to live in a rural area has it’s advantages when buying auto insurance. Drivers who live in large cities have to deal with congested traffic and longer commutes to work. Fewer drivers translates into fewer accidents.
- Drive less and save money – The more miles you rack up on your car in a year’s time the more you’ll pay to insure your vehicle. Most insurance companies charge to insure your cars based on their usage. Cars and trucks that are left in the garage can get a lower rate than those used for commuting. Verify your auto insurance policy is rated on how each vehicle is driven, because it can save money.
- Males pay more for insurance – Statistics demonstrate that women are safer drivers than men. That doesn’t necessarily mean that men are worse drivers. Men and women tend to get into accidents in similar percentages, but men cause more damage. Men also get more serious tickets like reckless driving and DUI. Young males tend to get in the most accidents and thus pay the highest rates.
- Your auto insurance rates can be influenced by your job – Jobs such as doctors, business owners and dentists tend to pay the highest average rates due to high stress and long work days. Other occupations such as pilots, historians and the unemployed have the lowest average rates.
- Lower rates with optional equipment – Driving a car with anti-theft technology or alarm system can save you a little every year. Anti-theft features like vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems all hinder your car from being stolen.
Buyer beware of auto insurance advertising tricks
Companies like Geico, State Farm and Progressive regularly use ads on TV and radio. All the ads say the same thing about savings if you move your policy. How can each company claim to save you money?
All companies have a preferred profile for the type of driver that makes them money. For example, a desirable insured could possibly be between 25 and 40, a clean driving record, and drives less than 10,000 miles a year. A driver that hits that “sweet spot” is entitled to the best price and as a result will probably pay quite a bit less when switching companies.
Drivers who are not a match for the requirements must pay more money and ends up with business not being written. The ads say “drivers who switch” not “everyone that quotes” save money. That’s the way insurance companies can confidently state the savings.
This illustrates why drivers must compare many company’s rates. It’s just too difficult to predict which company will provide you with the cheapest rates.
Summing up your auto insurance search
As you restructure your insurance plan, never buy less coverage just to save a little money. There have been many situations where someone sacrificed uninsured motorist or liability limits and learned later that their decision to reduce coverage ended up costing them more. Your strategy should be to get the best coverage possible for the lowest price while still protecting your assets.
The cheapest auto insurance can be found on the web and with local Lawrenceburg insurance agents, and you should be comparing both to have the best chance of lowering rates. A few companies do not offer online price quotes and most of the time these regional insurance providers sell through independent agents.
Additional auto insurance information can be found on the website for the Kentucky Department of Insurance through this link. Kentucky drivers can report car insurance fraud, find a variety of consumer forms, and get help finding coverage.