Using the web to shop for Memphis car insurance might seem complicated at first if you have never used online quoting. But relax because there is an easy way to compare rates.
Take discounts and save
The cost of insuring your cars can be expensive, but you may find discounts to reduce the price significantly. Some discounts apply automatically at the time of quoting, but a few need to be requested specifically in order for you to get them.
- Senior Discount – Mature drivers may receive better car insurance rates.
- Discount for Good Grades – This discount can earn a discount of 20% or more. The discount lasts until age 25.
- New Vehicle Savings – Insuring a new car can be considerably cheaper because new vehicles have to meet stringent safety requirements.
- Own a Home – Owning a house in Memphis may earn you a small savings due to the fact that maintaining a home demonstrates responsibility.
- Theft Prevention Discount – Vehicles equipped with anti-theft or alarm systems help deter theft and earn discounts up to 10%.
- Resident Student – Any of your kids who attend school more than 100 miles from home and don’t have a car can receive lower rates.
- Drive Safe and Save – Drivers who avoid accidents can pay as much as 50% less than less cautious drivers.
- Military Rewards – Being deployed with a military unit can result in better rates.
- Paperwork-free – Certain companies may give you up to $50 simply for signing online.
- Multiple Cars – Insuring all your vehicles on the same car insurance policy may reduce the rate for each vehicle.
As a disclaimer on discounts, most credits do not apply to the entire cost. Most only cut specific coverage prices like comp or med pay. So despite the fact that it appears adding up those discounts means a free policy, companies don’t profit that way. But any discount will cut your overall premium however.
Understand what determines the rate you pay
Smart consumers have a good feel for the factors that play a part in calculating the price you pay for car insurance. Having a good understanding of what controls the rates you pay allows you to make educated decisions that could result in much lower annual insurance costs.
- Where do you drive? – The more miles you rack up on your car in a year the higher your rates will be. Most insurance companies rate vehicles based on their usage. Cars that are left in the garage get more affordable rates than vehicles that are driven to work every day. Verify your car insurance policy is showing how each vehicle is driven.
- High credit ratings translate to low rates – A driver’s credit score is a large factor in determining your rates. Consumers who have high credit scores tend to be less risk to insure than those with lower credit ratings. Therefore, if your credit rating is low, you could save money insuring your by improving your credit score.
- Don’t skimp on liability – Your policy’s liability coverage provides coverage if you are found liable for damages caused by your negligence. It will provide legal defense coverage which can cost thousands of dollars. Carrying liability coverage is mandatory and cheap as compared to coverage for physical damage, so do not cut corners here.
- Careful drivers pay lower rates – Whether or not you get tickets has a huge affect on how much you pay. Only having one moving violation may increase your cost by twenty percent. Drivers with clean records have lower premiums compared to drivers with tickets. Drivers with flagrant tickets like hit and run, DWI or reckless driving convictions are required to submit a SR-22 or proof of financial responsibility with the DMV in their state in order to keep their license.
Don’t believe everything you hear
State Farm, Allstate and Geico constantly bombard you with ads on TV and radio. All the companies have a common claim of big savings if you switch your coverage to them. But how can every company make almost identical claims?
All the different companies are able to cherry pick for the type of customer that earns them a profit. A good example of a profitable customer could be between 25 and 40, owns a home, and has a short commute. A propective insured who matches those parameters will get the preferred rates and as a result will probably cut their rates substantially.
Potential insureds who do not match the requirements must pay higher prices and this can result in the driver buying from a lower-cost company. The ads state “drivers who switch” not “everybody who quotes” save money. That’s why companies can advertise the savings.
This illustrates why you need to get as many quotes as possible. Because you never know which company will provide you with the cheapest rates.
More information can be found on the Tennessee Department of Commerce and Insurance website through this link. Visitors are able to read state legal mandates and laws, view agent and company licensing information, and discover disciplinary actions.
Keep this in mind
You just learned many ideas to save on car insurance. The key thing to remember is the more times you quote, the better likelihood of reducing your rate. You may be surprised to find that the biggest savings come from some of the lesser-known companies.
Discount car insurance can be bought online as well as from independent agents in Memphis, so you should compare both so you have a total pricing picture. There are still a few companies who don’t offer you the ability to get quotes online and most of the time these smaller companies sell through independent agents.
As you shop your coverage around, it’s not a good idea to reduce needed coverages to save money. There are a lot of situations where someone sacrificed uninsured motorist or liability limits only to regret at claim time that saving that couple of dollars actually costed them tens of thousands. Your goal should be to get the best coverage possible at the best price.