Are you sick and tired of not being able to afford to pay your car insurance bill each month? You are in the same boat as millions of other consumers. There are many car insurance companies to insure vehicles with, and though it is a good thing to have a choice, lots of choices makes it harder to get the best deal.
It’s a great practice to price shop coverage occasionally since rates are variable and change quite frequently. Even if you think you had the best deal last year the chances are good that you can find a lower rate today. There is a lot of wrong information about auto insurance online, so we’re going to give you some solid techniques on how to put money back in your pocket.
Discounts can save BIG
Properly insuring your vehicles can get expensive, but discounts can save money and there are some available to reduce the price significantly. Some trigger automatically at the time you complete a quote, but lesser-known reductions have to be specifically requested prior to receiving the credit. If you don’t get every credit you deserve, you’re paying more than you need to.
- No Accidents – Drivers with accident-free driving histories can save substantially when compared with bad drivers.
- Safety Course Discount – Taking part in a defensive driving course can save you 5% or more if you qualify.
- Seat Belt Usage – Requiring all passengers to buckle their seat belts could cut 10% or more off your medical payments premium.
- Accident Waiver – Certain companies allow you one accident before raising your premiums so long as you haven’t had any claims for a certain period of time.
- Service Members Pay Less – Being deployed with a military unit could mean lower rates.
It’s important to understand that most of the big mark downs will not be given to all coverage premiums. Most only cut individual premiums such as collision or personal injury protection. Just because you may think all the discounts add up to a free policy, auto insurance companies aren’t that generous. But any discount will bring down your overall premium however.
To choose insurance companies with discount auto insurance rates in Minnesota, click this link.
Components of your insurance rates
It’s important that you understand some of the elements that play a part in calculating your auto insurance rates. Having a good understanding of what impacts premium levels enables informed choices that could result in lower auto insurance prices.
Shown below are some of the items auto insurance companies consider when setting premiums.
- Your credit rating is important – Having a bad credit score is a important factor in your rate calculation. Drivers with good credit tend to file fewer claims and have better driving records than those with lower credit scores. Therefore, if your credit history is low, you could be paying less to insure your by improving your rating.
- Do you qualify for a multi-policy discount? – Many auto insurance companies will give a discount to insureds who buy several policies from them, otherwise known as a multi-policy discount. Even with this discount, you still need to shop around to make sure you are getting the best deal. You may still find better rates by splitting coverages up.
- Rural vs Urban Areas – Living in a small town has it’s advantages when buying auto insurance. Fewer people translates into fewer accidents and a lower car theft rate. Urban drivers tend to have congested traffic and much longer commute distances. Longer commute distances can result in more accidents.
- Performance influences rates – The performance level of the car you own makes a huge difference in determining your rates. The lowest base rates are usually for low performance passenger cars, but other factors influence the final cost greatly.
- Occupation reflects on rates – Did you know your occupation can influence how much you pay for auto insurance? Occupations like real estate brokers, architects and stock brokers tend to pay the highest rates attributed to high stress levels and long work days. On the other hand, occupations like farmers, students and homemakers have the lowest average rates.
- Drive less and save money – The more you drive every year the higher your rates will be. Almost all companies apply a rate based upon how you use the vehicle. Autos left parked in the garage get more affordable rates than those used for commuting. Make sure your auto insurance policy shows the correct driver usage.
- Special features that cut premiums – Owning a car with anti-theft technology or alarm system can help lower your rates. Anti-theft features like LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system can help prevent car theft.
Learn more about Minnesota auto insurance
More information can be read on the website for the Minnesota Department of Commerce through this link. Consumers can file complaints about a company, report car insurance fraud, download brochures, and read consumer alerts.
More comparisons equals lower rates
Discount auto insurance can be bought both online as well as from independent agents in Cottage Grove, and you should be comparing both to have the best chance of lowering rates. Some auto insurance companies don’t offer you the ability to get quotes online and usually these smaller companies provide coverage only through local independent agents.
As you shop your coverage around, it’s not a good idea to buy lower coverage limits just to save a few bucks. Too many times, consumers will sacrifice full coverage and learned later that they should have had better coverage. The ultimate goal is to get the best coverage possible at a price you can afford.