Overpriced auto insurance can overdraw your personal savings, especially in this economy. Comparing price quotes is a smart way to lower your monthly bill. Popular companies such as Allstate, Liberty Mutual and State Farm constantly blast consumers with catchy ads and it can be hard to not get sucked in by the cute commercials and find the best price available.
Don’t miss these discounts
Properly insuring your vehicles can get expensive, but there are discounts available that you may not even be aware of. Some trigger automatically at the time of purchase, but less common discounts must be asked about in order for you to get them. If you don’t get every credit available, you are throwing money away.
- Accident Free – Good drivers with no accidents can save substantially as compared to frequent claim filers.
- Military Rewards – Having a family member in the military can result in better rates.
- Pay Now and Pay Less – If paying your policy premium upfront rather than paying monthly you could save up to 5%.
- New Car Discount – Buying coverage on a new vehicle can be considerably cheaper because new vehicles have to meet stringent safety requirements.
- Defensive Driver – Completing a driver safety course could save 5% or more if your company offers it.
- One Accident Forgiven – A few companies allow you one accident before hitting you with a surcharge if you are claim-free for a set time period.
- Clubs and Organizations – Belonging to a qualifying organization may earn a discount on your policy.
A little note about advertised discounts, most discounts do not apply to your bottom line cost. Most only cut individual premiums such as comprehensive or collision. Even though it may seem like you would end up receiving a 100% discount, it just doesn’t work that way. But any discount will reduce the amount you have to pay.
Buy Cheaper Auto Insurance with These Tips
Consumers need to have an understanding of the rating factors that help determine the rates you pay for auto insurance. Having a good understanding of what impacts premium levels allows you to make educated decisions that will entitle you to lower auto insurance prices.
The following are some of the items companies use to determine prices.
- Safer cars cost less to insure – Safer cars tend to have better insurance rates. Safer cars have better occupant injury protection and better occupant protection translates into savings for insurance companies and lower rates for you.
- The type of vehicle makes a difference – The type of vehicle you are insuring makes a big difference in the rate you pay. Low performance passenger cars usually have the lowest rates, but the final cost of insurance is determined by many other factors.
- Never go without insurance – Letting your insurance expire is a quick way to increase your auto insurance rates. And not only will your rates increase, getting caught without coverage might get you a revoked license or a big fine.
- Increase deductibles and save – Your deductibles represent how much money you are willing to pay out-of-pocket before a claim is paid by your company. Physical damage coverage, otherwise known as comp (or other than collision) and collision, covers damage that occurs to your car. Examples of covered claims would be colliding with a building, damage from fire, or theft. The more money you’re willing to pay, the less your auto insurance will be.
- Don’t buy coverages you don’t need – There are a ton of extra coverages that can waste your money if you aren’t careful. Insurance for personal injury protection, accident forgiveness and membership fees are some examples. These may sound like a good investment at first, but your needs may have changed so eliminate the coverages to reduce your premium.
Much more information about auto insurance in Indiana can be read on the website for the Indiana Department of Insurance located here. Indiana drivers can read industry bulletins, find out which companies have the most complaints, find disaster information, and file complaints about a company.
More quotes mean more savings
Discount auto insurance is definitely available from both online companies as well as from independent agents in Mishawaka, and you should be comparing both to have the best selection. Some auto insurance companies don’t offer online price quotes and most of the time these small insurance companies sell through independent agents.
As you go through the steps to switch your coverage, it’s a bad idea to buy lower coverage limits just to save a few bucks. There are too many instances where an insured cut comprehensive coverage or liability limits to discover at claim time that their decision to reduce coverage ended up costing them more. Your strategy should be to purchase a proper amount of coverage for the lowest price while still protecting your assets.