Did you fall for a flashy sales pitch and buy high-priced auto insurance? Trust us, there are many Madison consumers feeling the pinch from expensive auto insurance. Consumers have many car insurance companies to purchase coverage from, and though it is a good thing to have a selection, it makes it harder to find the lowest rates.
It’s a good habit to shop coverage around on a regular basis because insurance rates go up and down regularly. Even if you think you had the lowest price two years ago you may be paying too much now. There is a lot of bad advice regarding auto insurance online, so by reading this article, you’re going to learn some of the best ways to stop overpaying for insurance.
The purpose of this post is to help you learn how to effectively get price quotes and some tricks to saving. If you are paying for car insurance now, you stand a good chance to be able to save some money using these methods. Connecticut drivers just need to understand the most efficient way to compare prices online.
More discounts equal less premium
Car insurance can cost a lot, but you may find discounts that many people don’t even know exist. A few discounts will automatically apply when you complete an application, but some may not be applied and must be inquired about prior to getting the savings. If you don’t get every credit available, you are throwing money away.
- Bundle and Save – If you insure your home and vehicles with one insurance company you may save 10% to 20% off each policy.
- Memberships – Belonging to a civic or occupational organization could trigger savings when shopping for auto insurance.
- Drive Safe and Save – Drivers who don’t get into accidents can get discounts for up to 45% lower rates than drivers with accidents.
- Save over 55 – If you’re over the age of 55, you may be able to get a discount up to 10%.
- Sign Online – Some insurance companies may give you up to $50 simply for signing digitally online.
A little note about advertised discounts, most discounts do not apply to your bottom line cost. Most only reduce individual premiums such as comprehensive 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 any discount will bring down your overall premium however.
What impacts Madison insurance rates?
It’s important that you understand the rating factors that play a part in calculating the rates you pay for auto insurance. Having a good understanding of what impacts premium levels allows you to make educated decisions that can help you get big savings.
Shown below are a few of the “ingredients” companies use to determine your rates.
- Increase deductibles and save – Physical damage insurance, otherwise known as comp (or other than collision) and collision, protects your car from damage. Examples of covered claims are collision with another vehicle, damage from fire, or theft. Your deductibles are the amount of money you are required to spend before a claim is paid by your company. The more money you’re willing to pay, the less your auto insurance will be.
- Your credit rating is important – A driver’s credit score is a large factor in determining your rates. So if your credit history is lower than you’d like, you could save money insuring your by spending a little time repairing your credit. Drivers who have excellent credit tend to be better drivers and file fewer claims than drivers who have poor credit.
- Keep rates low by being claim-free – Companies in Connecticut generally give cheaper rates to drivers who are claim-free. If you are a frequent claim filer, you can definitely plan on either higher rates or even cancellation. Auto insurance is designed for major claims that would cause financial hardship.
- How many coverages with the same company – The majority of insurers will give a discount to people who buy several policies from them, otherwise known as a multi-policy discount. If you currently are using one company, it’s in your best interest to shop around to verify if the discount is saving money. Consumers may find a better deal by buying auto insurance from a different company.
- Safer occupants lowers premiums – Safer cars are cheaper to insure. These vehicles result in less severe injuries and better occupant protection means less money paid by your insurance company passed on to you as lower rates.
Misconceptions in auto insurance advertisements
Consumers in Connecticut constantly see and hear ads for the lowest price auto insurance by Progressive, Allstate and Geico. They all say the same thing that you’ll save big if you change to their company.
How can each company claim to save you money? It’s all in the numbers.
Insurance companies have a certain “appetite” for the right customer they prefer to insure. For instance, a profitable customer could possibly be over the age of 40, has no tickets, and has great credit. Any new insured who meets those qualifications gets the lowest rates and is almost guaranteed to save when they switch companies.
Consumers who don’t qualify for the requirements will be charged a more expensive rate which leads to the customer not buying. The ads state “customers that switch” not “everyone that quotes” save money. That is how companies can truthfully state the savings.
That is why it is so important to get as many comparisons as possible. Because you never know which company will give you the biggest savings.
Additional information can be found on the website for the Connecticut Insurance Department found here. Connecticut drivers can read state legal mandates and laws, file complaints about a company, get help finding coverage, and discover disciplinary actions.
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Smart consumers save more
Throughout this article, we presented a lot of ways to reduce auto insurance prices online. The most important thing to understand is the more times you quote, the more likely it is that you will get a better rate. Consumers could even find that the biggest savings come from some of the lesser-known companies. These companies may often insure only within specific states and give getter rates than their larger competitors like State Farm or Progressive.
Cost effective auto insurance is available both online in addition to many Madison insurance agents, and you need to price shop both to have the best rate selection. Some insurance providers do not provide online price quotes and many times these smaller companies only sell through independent insurance agents.
As you shop your coverage around, don’t be tempted to skimp on critical coverages to save a buck or two. In many cases, drivers have reduced liability limits or collision coverage only to discover later that saving that couple of dollars actually costed them tens of thousands. Your focus should be to find the BEST coverage at a price you can afford while not skimping on critical coverages.