Nobody likes having to buy auto insurance, particularly when the price is too high.
Because you have many auto insurance companies to choose from, it is very difficult to locate the right provider.
It’s a great practice to do rate comparisons every six months because rates are variable and change quite frequently. If you had the best rates six months ago you can probably find a better price now. Forget all the misinformation about auto insurance because I’m going to let you in on the secrets to how to use the internet to find great coverage at a great price.
Pay less by taking advantage of discounts
Insuring your fleet can be pricey, but you can get discounts that can drop the cost substantially. Some trigger automatically when you complete an application, but a few must be asked about before you get the savings.
- Low Mileage – Keeping the miles down could be rewarded with discounted rates on garaged vehicles.
- Anti-lock Brake System – Vehicles equipped with ABS or steering control can avoid accidents and will save you 10% or more.
- One Accident Forgiven – Certain companies allow you one accident before hitting you with a surcharge as long as you don’t have any claims for a certain period of time.
- Military Rewards – Having a family member in the military could mean lower rates.
- Paperless Signup – Some insurance companies may give you up to $50 for buying your policy online.
- Payment Discounts – If paying your policy premium upfront instead of making monthly payments you can actually save on your bill.
- College Student – Youth drivers who are attending college without a vehicle on campus may qualify for this discount.
- Save over 55 – Older drivers may receive a small decrease in premiums.
- Good Students Pay Less – This discount can get you a discount of up to 25%. The good student discount can last until age 25.
- No Accidents – Drivers who don’t have accidents pay much less compared to accident-prone drivers.
Consumers should know that many deductions do not apply to all coverage premiums. Some only reduce the cost of specific coverages such as comprehensive or collision. Just because you may think all those discounts means the company will pay you, you’re out of luck. But any discount will bring down the cost of coverage.
Smart Consumers Save More
Smart consumers have a good feel for the rating factors that help determine auto insurance rates. Having a good understanding of what determines base rates allows you to make educated decisions that could result in much lower annual insurance costs.
- Frequent auto insurance claims increase rates – Companies in Vermont award better rates to policyholders who do not rely on their insurance for small claims. If you tend to file frequent claims, you can expect either higher rates or even cancellation. Car insurance is intended to be relied upon for the bigger claims that can’t be paid out-of-pocket.
- Do you need the policy add-ons? – There are a lot of add-on coverages that you can get tricked into buying if you aren’t careful. Things like rental car reimbursement, accidental death and term life insurance are some examples. These coverages may sound good at first, but if they’re wasting money remove them from your policy.
- Higher deductibles cost less – Coverage for physical damage, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. A few examples of covered claims are collision with another vehicle, damage from fire, and burglary. The deductibles are how much you are willing to pay out-of-pocket if you file a covered claim. The higher the amount you have to pay, the bigger discount you will receive.
- Teen drivers pay high rates – Young drivers in Vermont have a tendency to be more careless when behind the wheel so auto insurance rates are higher. Older insureds are viewed as being more responsible, file fewer claims and receive fewer citations.
- Bundling policies can get discounts – The majority of insurance companies give discounts to policyholders who consolidate policies with them in the form of a multi-policy discount. If you currently are using one company, it’s in your best interest to compare rates to ensure the best deal.
Your coverage should be tailored to you
When buying proper insurance coverage for your vehicles, there really is no single plan that fits everyone. Every situation is different and a cookie cutter policy won’t apply. These are some specific questions could help you determine whether you would benefit from an agent’s advice.
- Am I covered when driving on a suspended license?
- Am I covered when driving someone else’s vehicle?
- How much liability do I need to cover my assets?
- Who is covered when they drive my vehicle?
- Is business property covered if stolen from my car?
- Am I covered by my employer’s commercial auto policy when driving my personal car for business?
- Is my business laptop covered if it gets stolen from my vehicle?
- Do I have coverage when making deliveries for my home business?
If you can’t answer these questions but you know they apply to you then you might want to talk to an insurance agent. To find lower rates from a local agent, take a second and complete this form or go to this page to view a list of companies.
How can State Farm and Allstate save drivers who switch?
State Farm and Allstate consistently run television and radio advertisements. All the companies have a common claim that you’ll save big if you change to them. How can each company make almost identical claims?
All companies have a preferred profile for the type of driver they prefer to insure. For instance, a driver they prefer could possibly be over the age of 50, a clean driving record, and drives less than 7,500 miles a year. Any driver who fits that profile will get the preferred rates and most likely will save when they switch companies.
Consumers who don’t qualify for the requirements must pay higher prices which leads to business not being written. Company advertisements say “customers that switch” but not “drivers who get quotes” save money. That is how insurance companies can confidently state the savings.
This illustrates why drivers should get a wide range of price quotes. It’s not possible to predict which company will give you the biggest savings.
Additional auto insurance information can be found on the website for the Vermont Department of Financial Regulation found here. Visitors are able to discover disciplinary actions, learn about specific coverages, and read state legal mandates and laws.
More related Derby auto insurance information:
- 8 Ways to Cut Your Car Insurance Rates in Derby, KS
- Little Known Methods to Paying Less for Derby, KS Auto Insurance
More comparisons equals lower rates
Cheap auto insurance can be purchased from both online companies and also from your neighborhood Derby agents, and you should compare price quotes from both to have the best selection. Some auto insurance companies may not provide online quoting and usually these regional insurance providers provide coverage only through local independent agents.
When you buy insurance online, it’s a bad idea to sacrifice coverage to reduce premiums. There are a lot of situations where consumers will sacrifice comprehensive coverage or liability limits only to find out that a couple dollars of savings turned into a financial nightmare. Your aim should be to find the BEST coverage at an affordable rate, not the least amount of coverage.