Paying for expensive car insurance can bleed your bank account and force you to make tough financial choices. Performing a rate comparison is free, only takes a few minutes, and is a good way to tighten up your finances.
Companies like GEICO, 21st Century and Progressive all promote huge savings with ad campaigns and it is challenging if not impossible to not get sucked in by the cute commercials and take the time to shop coverage around.
If you have a current car insurance policy or need a new policy, you can use these techniques to reduce the price you pay and still get good coverage. Finding affordable coverage in Ellisville is quite easy. Missouri vehicle owners only need to know the proper methods to compare rates on the web.
Save with with these discounts
Not many people think insurance is cheap, but you may find discounts that you may not even know about. Larger premium reductions will be automatically applied when you purchase, but some discounts are required to be specifically requested before you get the savings.
- Buy New and Save – Buying a new car instead of a used car can get you a discount because new vehicles are generally safer.
- Pay Early and Save – By making one initial payment instead of paying each month you can avoid the installment charge.
- Active Service Discounts – Being on active duty in the military could trigger a small discount.
- Paperwork-free – Some of the larger companies will provide an incentive on your computer.
- Theft Prevention System – Cars, trucks, and SUVs with anti-theft systems are less likely to be stolen and therefore earn up to a 10% discount.
- Auto/Home Discount – If you have multiple policies with one insurance company you may earn at least 10% off all policies.
A quick disclaimer, most credits do not apply the the whole policy. Most only reduce the cost of specific coverages such as medical payments or collision. Just because you may think you would end up receiving a 100% discount, it doesn’t quite work that way.
To see a list of insurers that offer discounts in Missouri, click this link.
How to lower your car insurance rates
Multiple criteria are used when pricing auto insurance. A few of the factors are predictable like a motor vehicle report, but other factors are not as apparent like your continuous coverage or how safe your car is. An important part of buying insurance is that you know some of the things that help calculate the rates you pay for car insurance. When you know what positively or negatively positively or negatively impacts your premiums, this enables you to make decisions that may reward you with lower rates.
- Extra policy coverages can add up – There are a lot of additional extra coverages that can add up if you aren’t careful. Things like roadside assistance, high-cost glass coverage, and Farm Bureau memberships may not be needed and are just wasting money. These coverages may sound good when talking to your agent, but your needs may have changed so eliminate them to save money.
- A lcar insurance policy lapse is a bad thing – Driving without insurance is against the law and your next policy will cost more because you let your insurance expire. In addition to paying higher premiums, not being able to provide proof of insurance may earn you a fine, jail time, or a revoked license. You may then be required to provide proof of insurance in the form of an SR-22 filing with the Missouri motor vehicle department to get your license reinstated.
- Insurance is expensive for younger drivers – Teen drivers in Missouri are statistically shown to be less responsible when at the wheel of a vehicle so they pay higher car insurance rates. If you’ve ever had to add a teenage driver onto your car insurance can really hurt. Mature drivers tend to be more responsible, statistically cause fewer accidents .
- Employer impacts premiums – Occupational choices like judgespolice officers and emergency personnel tend to pay the highest average rates attributed to high stress levels and long work days. On the flip side, careers like farmers, athletes and performers pay lower than average rates.
- Getting married is a bonus – Being married may save some money when buying car insurance. Having a spouse demonstrates that you tend to be more mature and insurance companies like that married couples file fewer claims.
- Do you really need to file that policy claims? – Companies in Missouri provide cheaper rates to people who are claim-free. If you file a lot of claims you can pretty much guarantee increased rates or even have your policy non-renewed. Auto insurance is meant to be used in the event of claims that pose a financial burden.
- Don’t skimp on liability – Your policy’s liability coverage will afford coverage if ever a court rules you are at fault for personal injury or accident damage. This coverage provides legal defense coverage which can cost a lot. Liability insurance is quite affordable when compared to the cost of physical damage coverage, so insureds should have plenty of protection for their assets.
- Urban areas may pay more – Having an address in areas with lower population has definite advantages when talking about car insurance. Fewer drivers and short commutes translates into fewer accident claims in addition to lower liability claims Urban drivers regularly have more auto accidents and a longer drive to work. Spending more time driving means more chances of being involved in an auto accident.
Car insurance advertisements
Consumers can’t ignore all the ads that claim the cheapest rates from the likes of State Farm and Allstate. All the companies try to convey promises that you’ll save big if you change your car insurance policy to them.
But how can every company offer drivers better rates? This is how they do it.
All companies have underwriting criteria for the right customer that earns them the most money. One example of this type of driver should be over the age of 35, insures multiple vehicles, and has excellent credit. A customer getting a price quote who meets those qualifications will get low rates as well as save if they switch.
Consumers who do not match these criteria may be forced to pay a more expensive rate which usually ends up with the customer not purchasing. If you listen to the ad wording, they say “drivers who switch” but not “everyone who gets a quote” save that much when switching. That is how companies can truthfully make the claims of big savings. This illustrates why you really should compare often. It’s impossible to know which insurance companies will be your best fit.
Learn more about car insurance in Missouri
Additional detailed information can be read at the Missouri Department of Insurance website. Visitors are able to find disaster information, find a variety of consumer forms, read enforcement actions against agents and companies, and download brochures.
Car insurance savings summarized
Budget-friendly car insurance can be purchased from both online companies in addition to many Ellisville insurance agents, so you should compare both to have the best chance of lowering rates. There are still a few companies who do not offer online price quotes and most of the time these smaller providers provide coverage only through independent insurance agents.
As you go through the steps to switch your coverage, never skimp on coverage in order to save money. There are too many instances where an insured dropped liability coverage limits only to discover later that the savings was not a smart move. The aim is to purchase a proper amount of coverage at the best price while still protecting your assets.