Did you fall for a flashy sales pitch and buy an underperforming, overpriced auto insurance policy? Believe me, you’re not alone. With so many choices, it’s nearly impossible to locate the best insurance company.
It’s a great practice to get comparison quotes before your policy renews because prices fluctuate regularly. Even if you think you had the best deal six months ago you can probably find a better price now. There is a lot of wrong information about auto insurance online but by reading this article, you’re going to learn some great ideas on how to reduce your auto insurance bill.
Free Beresford Auto Insurance Quotes
All the larger auto insurance companies allow you to get prices on the web. This process doesn’t take a lot of time as you just type in your coverage preferences as requested by the quote form. Once entered, their system sends out for your driving and credit reports and returns a price quote. This streamlines rate comparisons, but the work required to visit multiple sites and complete many quote forms can get tiresome after awhile. But it’s very important to perform this step if you want to find the best price on auto insurance.
The preferred way to compare rates uses one simple form that analyzes rates from several companies at one time. It’s a real time-saver, eliminates form submissions, and makes online price comparison much more enjoyable and efficient. After sending your information, it gets priced and you can choose any or none of the quotes that you receive.
If the quotes result in lower rates, you can simply submit the application and purchase coverage. The entire process only takes a few minutes and may result in a nice savings.
To compare rates now, click here to open in a new tab and input your coverage information. If you have your current policy handy, we recommend you input identical to your current policy. Using the same limits helps guarantee you will have rate comparison quotes based on identical coverages.
Misconceptions in auto insurance advertisements
South Dakota drivers get pounded daily by advertisements for the lowest price auto insurance from the likes of GEICO, State Farm and Progressive. All the companies say the same thing that you can save after switching your coverage to them.
But how can every company say the same thing?
All the different companies have a certain “appetite” for the type of driver they prefer to insure. An example of a profitable customer could be between the ages of 40 and 55, is a homeowner, and has excellent credit. Any driver who matches those parameters is entitled to the best price and as a result will probably save when switching.
Consumers who fall outside the “perfect” profile must pay higher premiums which leads to business going elsewhere. Company advertisements say “drivers who switch” not “people who quote” save money. That is how companies can truthfully make those claims.
This illustrates why drivers should get a wide range of price quotes. It’s not possible to predict which company will provide you with the cheapest rates.
How insurance companies determine rates
An important part of buying insurance is that you know the rating factors that help determine your auto insurance rates. Understanding what impacts premium levels allows you to make educated decisions that could result in better auto insurance rates.
The following are some of the factors companies use to determine premiums.
- Where do you drive? – The more miles you rack up on your car every year the higher your rates will be. The majority of insurers apply a rate based on their usage. Cars used primarily for pleasure use qualify for better rates as compared to vehicles used primarily for driving to work. Double check that your auto insurance policy is showing how each vehicle is driven.
- Sex matters – Statistics show that men are more aggressive behind the wheel. However, don’t assume that women are BETTER drivers than men. Both sexes tend to get into accidents at about the same rate, but the male of the species cause more damage and cost insurance companies more money. Men also tend to receive more costly citations such as reckless driving.
- Extra add-on coverages are wasting money – There are a ton of add-on coverages that you can get tricked into buying if you aren’t careful. Coverages for rental car reimbursement, accidental death and membership fees may be costing you every month. These may sound like a good investment when you first buy your policy, but your needs may have changed so eliminate them to save money.
- Traffic citations inflate rates – A bad driving record impacts your car insurance rates tremendously. Good drivers get better rates than people who have multiple driving citations. Just one speeding ticket can increase rates by twenty percent. If you have severe violations such as DWI, reckless driving or hit and run convictions may find they need to file a proof of financial responsibility form (SR-22) with their state motor vehicle department in order to drive a vehicle legally.
Discounts are great for lower rates
Properly insuring your vehicles can get expensive, buy you may qualify for discounts to reduce the price significantly. A few discounts will automatically apply at the time you complete a quote, but some must be specifically requested before they will apply. If you’re not getting every credit you qualify for, you’re paying more than you need to.
- Resident Student – Youth drivers who live away from home and don’t have a car can receive lower rates.
- Anti-lock Brake System – Cars that have steering control and anti-lock brakes can avoid accidents and earn discounts up to 10%.
- 55 and Retired – Mature drivers may be able to get reduced rates.
- One Accident Forgiven – A few companies allow you one accident before raising your premiums so long as you haven’t had any claims for a set time period.
- Payment Discounts – If you pay your bill all at once rather than paying monthly you could save up to 5%.
- Employee of Federal Government – Being employed by or retired from a federal job could cut as much as 10% off with certain companies.
- Service Members Pay Less – Having a deployed family member could be rewarded with lower premiums.
- Defensive Driver – Completing a course teaching defensive driving skills could possibly earn you a 5% discount if you qualify.
- Multiple Cars – Buying coverage for all your vehicles on one policy may reduce the rate for each vehicle.
Drivers should understand that some credits don’t apply to all coverage premiums. Most only reduce specific coverage prices like comp or med pay. So even though it sounds like you would end up receiving a 100% discount, it doesn’t quite work that way. Any amount of discount will bring down the amount you have to pay.
You may need specialized coverage
When choosing adequate coverage, there really is not a “best” method to buy coverage. Everyone’s needs are different and a cookie cutter policy won’t apply. For instance, these questions may help you determine if your situation will benefit from professional help.
- When does my teenage driver need to be added to my policy?
- Is my babysitter covered when using my vehicle?
- Should I buy more coverage than the required South Dakota minimum liability coverage?
- Do I have coverage for damage caused while driving under the influence?
- Am I covered by my employer’s commercial auto policy when driving my personal car for business?
- Am I getting all the discounts available?
- Should I have combined single limit or split liability limits?
- When would I need additional glass coverage?
- Are my tools covered if they get stolen from my vehicle?
If you can’t answer these questions but one or more may apply to you, then you may want to think about talking to an insurance agent. If you don’t have a local agent, fill out this quick form or go to this page to view a list of companies. It’s fast, free and can provide invaluable advice.
Cheaper insurance is a realistic goal
In this article, we covered some good ideas how to reduce auto insurance prices online. The most important thing to understand is the more quotes you get, the better your comparison will be. Consumers could even find that the lowest priced auto insurance comes from a lesser-known regional company. Regional companies can often provide lower rates in certain areas than the large multi-state companies such as GEICO and State Farm.
Budget-conscious auto insurance can be found online and also from your neighborhood Beresford agents, and you need to price shop both in order to have the best chance of saving money. Some insurance providers may not provide you the ability to get quotes online and many times these small insurance companies only sell through independent insurance agents.
Consumer auto insurance information in South Dakota
Much more information about auto insurance in South Dakota can be read on the website for the South Dakota Division of Insurance. Click here for link. South Dakota drivers can file complaints about a company, discover disciplinary actions, read industry bulletins, and read enforcement actions against agents and companies.