Trying to come up with a payment for high-priced auto insurance can bleed your monthly budget and force you to make sacrifices. Comparing rate quotes is a great way to make ends meet.
You have multiple insurance companies to purchase coverage from, and although it’s nice to have a selection, it makes it harder to compare rates.
Locating affordable protection in Maquoketa can be fairly easy. Basically, every driver who is required by state law to have auto insurance most likely will be able to find better rates. Nevertheless, Iowa consumers must understand how insurance companies market insurance on the web.
What determines auto insurance prices?
Lots of factors are part of the calculation when you get your auto insurance bill. Some of the criteria are obvious such as your driving record, but other factors are more transparent like your vehicle usage or your vehicle rating. When buying auto insurance it’s important to understand the rating factors that help calculate the rates you pay for auto insurance. If you understand what impacts premium levels, this enables informed choices that can help you get better auto insurance rates.
- Tickets hurt – Having a single chargable violation may increase your cost substantially. Good drivers pay lower auto insurance prices than bad drivers. Drivers with multiple violations like hit and run, DWI or reckless driving convictions may be required to file a proof of financial responsibility form (SR-22) with the DMV in their state in order to legally drive.
- How credit score affects auto insurance premiums – A driver’s credit history can be a huge factor in your rate calculation. Consumers who have very good credit scores tend to be less risk to insure than drivers with lower credit ratings. If your credit is lower than you’d like, you may save money insuring your vehicle if you clean up your credit.
- Liability insurance limits are a factor – The liability coverage on your policy provides coverage when you are found to be at fault for causing damage or personal injury in an accident. Your liability coverage provides you with a defense in court which can be incredibly expensive. Liability insurance is pretty cheap when compared with rates for comp and collision, so drivers should carry high limits.
- Drive less and save – The higher the miles on your car annually the more you’ll pay to insure it. Many insurance companies charge rates partially by how you use the vehicle. Vehicles that have low annual miles can get a lower rate than cars that get driven a lot. Make sure your auto insurance policy correctly shows the correct driver usage.
- Discounts for married drivers – Getting married can actually save you money when shopping for auto insurance. Having a significant other usually means you are more financially stable and insurance companies reward insureds because drivers who are married file infrequent claims.
These discounts can lower your auto insurance quotes
Not too many consumers would say auto insurance is affordable, but you might find some hidden discounts to help bring down the price. Larger premium reductions will be automatically applied when you purchase, but a few must be specifically requested prior to getting the savings.
- Club Memberships – Joining a civic or occupational organization in Maquoketa may earn a discount on your bill.
- Save with a New Car – Buying a new car instead of a used car can be considerably cheaper since new vehicles have better safety ratings.
- Discount for Passive Restraints – Factory options such as air bags or motorized seat belts may qualify for discounts as much as 30%.
- Good Grades Discount – A discount for being a good student may save as much as 25% on a . Many companies even apply the discount to college students up to age 25.
- Student Discount for Driver Training – Require your teen driver to sucessfully take a drivers education course if it’s offered in school.
- Senior Citizen Discount – If you’re over the age of 55, you can get a small discount on rates.
- Policy Bundle Discount – If you can combine your home and auto policy and insure them with the same company you could save over 10 percent off each policy depending on the company.
Discounts lower rates, but some of the credits will not apply to the entire policy premium. Some only apply to the price of certain insurance coverages like physical damage coverage or medical payments. Just because it seems like it’s possible to get free car insurance, auto insurance companies aren’t that generous.
Companies and some of the discounts can be read below.
- Travelers may offer discounts for multi-policy, early quote, new car, hybrid/electric vehicle, and student away at school.
- 21st Century has discounts for air bags, defensive driver, 55 and older, homeowners, and theft prevention.
- State Farm discounts include good student, safe vehicle, multiple autos, defensive driving training, Drive Safe & Save, accident-free, and good driver.
- Geico includes discounts for federal employee, anti-lock brakes, military active duty, membership and employees, multi-policy, and five-year accident-free.
- SAFECO has savings for safe driver, anti-lock brakes, homeowner, teen safety rewards, and teen safe driver.
- AAA may have discounts that include AAA membership discount, good student, multi-car, anti-theft, good driver, and pay-in-full.
If you need lower rates, check with each company or agent which discounts can lower your rates. Discounts may not apply in your area. To view insurance companies that offer multiple discounts in Maquoketa, click this link.
Auto insurance savings promises
Well-known auto insurance companies like State Farm, Geico and Progressive seem to constantly run ads in print and on television. All the ads make an identical promise about savings just by moving your coverage. But how can every company offer drivers better rates? It’s all in the words they use.
Many companies have underwriting criteria for a prospective insured that earns them the highest profit. One example of a desirable risk might be described as over the age of 40, has a clean driving record, and drives newer vehicles. Someone who matches that profile will most likely get cheap car insurance rates and is almost guaranteed to save some money.
Drivers who don’t qualify for the requirements will probably be forced to pay a more expensive rate which translates to the customer buying from a different company. The trick is to say “people who switch” not “all people who quote” save that kind of money. That’s the way companies can make those statements.
Each company has different criteria, so you should get as many as possible. You cannot predict which auto insurance company will give you the biggest savings.
Additional information can be read on the website for the Iowa Insurance Division located here. Consumers can find disaster information, read consumer alerts, and read enforcement actions against agents and companies.
Additional helpful sites include this page for auto insurance in Iowa and this list of insurance agents in Maquoketa.
Lower rates by being persistent
When getting , it’s very important that you do not buy poor coverage just to save money. In many instances, drivers have reduced collision coverage and learned later that the savings was not a smart move. Your goal is to get the best coverage possible at a price you can afford but still have enough coverage for asset protection.
Throughout this article, we presented quite a bit of information on how to get a better price on auto insurance. It’s most important to understand that the more times you quote, the better your comparison will be. Consumers may even find the best price on auto insurance is with some of the smallest insurance companies. These smaller insurers may only write in your state and offer lower prices than the large multi-state companies such as Progressive or Geico.