Scraping up a payment for overpriced auto insurance can overdraw your bank account and force you to prioritize other expenses. Shopping your coverage around is a great way to reduce premiums and put more money in your pocket.
Having so many options when it comes to auto insurance, it can be hard to pick the most cost effective insurer.
It’s smart to price shop coverage occasionally since insurance rates tend to go up over time. If you had the lowest rates last year there is a good chance you can find better rates now. So forget anything you know (or think you know) about auto insurance because I’m going to teach you one of the best ways to lower your annual insurance bill.
Buying car insurance in Andover is not rocket science. If you currently have a car insurance policy, you stand a good chance to be able to lower your premiums substantially using these techniques. Nevertheless, Minnesota consumers need to have an understanding of how the larger insurance companies determine prices and take advantage of how the system works.
Auto Insurance Prices in Andover
There are a variety of methods to shop for auto insurance, but there is one way that is easier and takes less work. You could spend the better part of a day driving to agents in Andover, or you can utilize online quotes to get pricing more quickly.
Many companies are enrolled in a marketplace where insurance shoppers only type in their quote data once, and at least one company then returns a price quote based on that data. This eliminates the need for quote requests to each company.
To find out what other companies charge click here to start a free quote.
The only drawback to using this type of system is you are unable to specify the providers to get quotes from. So if you prefer to pick from a list of companies to compare rates, we put together a list of the cheapest auto insurance companies in Minnesota. Click here for list of insurance companies in Minnesota.
It’s your choice how you get your quotes, but make absolute certain that you use exactly the same coverage information for every company. If the quotes have different values for each quote it’s not possible to make an equal comparison in Andover. Just a small difference in insurance coverages can mean a large discrepancy in price. Just keep in mind that more quotes provides better odds of finding the best rates.
Do drivers who switch really save $434 a year?
Auto insurance companies such as State Farm, Geico and Progressive regularly use ads in print and on television. They all seem to make the same claim of big savings if you move your policy. How does each company make the same claim? This is how they do it.
All companies are able to cherry pick for the type of customer that is profitable for them. A good example of a preferred risk might be profiled as between the ages of 40 and 55, has no prior claims, and drives newer vehicles. Any new insured who meets those qualifications will get very good rates and is almost guaranteed to save a lot of money.
Consumers who don’t measure up to these standards will be quoted a higher premium and this can result in business going elsewhere. The ads state “people who switch” not “everybody who quotes” save that much money. That is how companies can truthfully state the savings. This emphasizes why you should quote coverage with many companies. It is impossible to predict which auto insurance company will fit your personal profile best.
How to Lower your Auto Insurance Rates
It’s important that you understand the factors that play a part in calculating your auto insurance rates. Knowing what impacts premium levels empowers consumers to make smart changes that will entitle you to big savings.
Shown below are a few of the “ingredients” used by your company to calculate prices.
- Never go without insurance – Letting your insurance expire is a quick way to increase your auto insurance rates. Not only will you pay more, but being ticketed for driving with no insurance can result in a license revocation or jail time.
- Big city or small town – Residing in a rural area can be a good thing when buying auto insurance. Less people living in that area translates into fewer accidents as well as less vandalism and auto theft. City drivers tend to have much more traffic to deal with and longer commute times. Longer commute distances means higher likelihood of an accident.
- Protect your assets with liability insurance – Your policy’s liability coverage is the protection when a court rules you are at fault for personal injury or accident damage. It provides for a legal defense which can be incredibly expensive. Liability insurance is quite affordable as compared to coverage for physical damage, so drivers should carry high limits.
- Tickets mean higher rates – Even one moving violation can increase rates twenty percent or more. Good drivers have lower premiums than bad drivers. If you have serious violations like DWI, reckless driving or hit and run convictions may find they need to submit a SR-22 or proof of financial responsibility with the DMV in their state in order to continue driving.
- Is your vehicle built for speed? – The performance of the car you own makes a huge difference in how high your rates are. The lowest base rates are usually for lower performance four cylinder passenger vehicles, but there are many factors that impact the final cost.
- Your occupation can affect rates – Jobs such as doctors, social workers and financial analysts are shown to have higher average rates attributed to job stress and long work days. Conversely, professions such as scientists, engineers and retirees pay the least.
- Frequent auto insurance claims increase rates – If you file claims often, you can look forward to either policy cancellation or increased premiums. Auto insurance companies in Minnesota provide cheaper rates to people who do not file claims often. Your insurance policy is intended for larger claims.
- Higher deductibles cost less – Physical damage insurance, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. Some examples of claims that would be covered are collision with another vehicle, collision with an animal, and burglary. Your deductibles are how much you are required to spend out-of-pocket before a claim is paid by your company. The higher the amount the insured has to pay upfront, the bigger discount you will receive.
Discounts can save BIG
Companies that sell car insurance don’t list all available discounts in an easy-to-find place, so the following is a list of both well-publicized and the more hidden savings tricks you should be using.
- Homeowners Savings – Being a homeowner can save you money because maintaining a house demonstrates responsibility.
- Use Seat Belts – Drivers who require all occupants to buckle their seat belts could cut 10% or more off the personal injury premium cost.
- Multiple Cars – Buying insurance for all your vehicles on the same auto insurance policy can get a discount on all vehicles.
- Auto/Life Discount – Some companies give better rates if you take out life insurance from them.
- Paperless Signup – Certain companies will give a small break just for signing your application on their website.
- Resident Student – Any of your kids who live away from home and do not have access to a covered vehicle can receive lower rates.
- Clubs and Organizations – Affiliation with a professional or civic organization could trigger savings when shopping for auto insurance.
As a disclaimer on discounts, some of the credits will not apply to the entire policy premium. Most only reduce the cost of specific coverages such as collision or personal injury protection. Just because it seems like adding up those discounts means a free policy, you won’t be that lucky.
Insurance agents can help
When choosing the best auto insurance coverage for your personal vehicles, there really is no cookie cutter policy. Every insured’s situation is different so this has to be addressed. For example, these questions may help you determine whether or not you might need professional guidance.
- Does my policy cover me when driving someone else’s vehicle?
- Who is covered by my policy?
- Is my business laptop covered if it gets stolen from my vehicle?
- Does my policy cover my teen driver if they drive my company car?
- Should I file a claim if it’s only slightly more than my deductible?
- Do I have coverage when making deliveries for my home business?
- Do I need PIP (personal injury protection) coverage in Minnesota?
- Do I need medical payments coverage since I have good health insurance?
If you’re not sure about those questions, you may need to chat with an agent. If you don’t have a local agent, complete this form or click here for a list of auto insurance companies in your area.
Your insurance agent down the street
A small number of people prefer to buy from a licensed agent and there is nothing wrong with that. One of the great benefits of comparing insurance prices online is that you can obtain better rates and still have an agent to talk to.
For easy comparison, once you complete this simple form, the quote information is emailed to agents in your area who will battle for your insurance coverage. You won’t need to even leave your home since price quotes are sent immediately to your email address. How’s that for easy! You can find better rates and an insurance agent to talk to.
Selecting an insurer needs to be determined by more than just a low price. These questions are important to ask:
- How long have they worked with personal auto insurance coverage?
- Do the companies they represent have a solid financial rating?
- Does the agency have a good rating with the Better Business Bureau?
- How much will you save each year by using a higher deductible?
- Did they already check your driving record and credit reports?
How to choose the best auto insurance agent in Andover
When looking for a good insurance agency, there are two types of agencies that differ in how they can insure your vehicles. Andover agents are either independent (non-captive) or captive.
Captive Insurance Agents
Captive agents can only place business with one company such as AAA, Allstate, State Farm, Farmers Insurance or Liberty Mutual. They usually cannot give you multiple price quotes so always compare other rates. These agents are very knowledgeable on their products and sales techniques which helps them sell insurance even at higher premiums.
Below is a short list of captive insurance agencies in Andover willing to provide comparison quotes.
American Family Insurance – 3651 Round Lake Blvd NW – Andover, MN 55303 – (763) 712-8221
State Farm Insurance – 13412 Hanson Blvd NW – Andover, MN 55304 – (763) 754-4044
Independent Agents (or Brokers)
Independent insurance agents are not required to write business for one company so they have the ability to put coverage with lots of companies and possibly get better coverage at lower prices. To transfer your coverage to a different company, an independent agent can move your coverage and that require little work on your part. When shopping rates, you should always get quotes from several independent insurance agents to get the best comparison.
Listed below are Andover independent insurance agents willing to provide price quote information.
MSI Insurance – 17046 Waco St NW – Andover, MN 55304 – (763) 427-7250
Marci Hawkins Agency – 1573 154th Ave NW # 103 – Andover, MN 55304 – (763) 427-4055
Ed Olson Agency – 13750 Crosstown Dr NW # 206 – Andover, MN 55304 – (763) 315-3068
Christiansen Insurance – 13828 Round Lake Blvd NW – Andover, MN 55304 – (763) 427-2700
Ames Agency-Insurance – 4310 144th Ln NW – Andover, MN 55304 – (763) 421-4343
For a full directory of Andover insurance agents, visit this site.
After receiving positive responses to your questions as well as a affordable price, you’ve probably found an insurance agency that meets your needs to properly insure your vehicles.
Keep this in mind
As you restructure your insurance plan, don’t be tempted to buy poor coverage just to save money. There are a lot of situations where someone sacrificed physical damage coverage only to regret that a couple dollars of savings turned into a financial nightmare. Your focus should be to find the BEST coverage at a price you can afford, not the least amount of coverage.
The cheapest auto insurance can be found both online and also from your neighborhood Andover agents, and you should be comparing both in order to have the best price selection to choose from. Some insurance providers may not provide you the ability to get quotes online and most of the time these small insurance companies sell through independent agents.
We’ve covered a lot of techniques to lower your auto insurance rates. The key concept to understand is the more rate comparisons you have, the higher your chance of finding lower rates. Drivers may discover the lowest priced auto insurance comes from some of the lesser-known companies. These companies may cover specific market segments cheaper compared to the large companies like Progressive and Geico.
Minnesota insurance information
More tips and info about auto insurance can be found at the Minnesota Department of Commerce website. Visitors are able to find out which companies have the most complaints, read state legal mandates and laws, read consumer alerts, and file complaints about a company.