Overpriced auto insurance can dwindle your savings account and force you to make sacrifices. Doing a price comparison is free and is an excellent way to lower your monthly bill. There are many insurers to purchase coverage from, and even though it’s nice to be able to choose, so many choices can make it hard to compare rates.
Cut your auto insurance rates with discounts
The price of auto insurance can be rather high, but there are discounts available to help offset the cost. Certain discounts will be triggered automatically at the time of quoting, but some may not be applied and must be requested specifically prior to getting the savings. If you’re not getting every credit you deserve, you are paying more than you should be.
- Paperwork-free – Certain companies give back up to $50 for buying a policy and signing up on their website.
- Good Student Discount – Getting good grades can get you a discount of up to 25%. The good student discount can last until age 25.
- Resident Student – Youth drivers who are attending college without a vehicle on campus may be able to be covered for less.
- Safety Course Discount – Successfully completing a course teaching defensive driving skills can save you 5% or more if your company offers it.
- Claim Free – Drivers with accident-free driving histories pay much less when compared with accident-prone drivers.
- Passive Restraint Discount – Vehicles equipped with air bags may earn rate discounts up to 30%.
- Service Members Pay Less – Being deployed with a military unit could be rewarded with lower premiums.
- Discounts for Safe Drivers – Insureds without accidents may save up to 50% more than less cautious drivers.
As a disclaimer on discounts, most credits do not apply to your bottom line cost. Most only apply to individual premiums such as collision or personal injury protection. So even though it sounds like you can get free auto insurance, auto insurance companies aren’t that generous. Any qualifying discounts will reduce your overall premium however.
Make smart decisions and save
Smart consumers have a good feel for the factors that play a part in calculating your auto insurance rates. Having a good understanding of what determines base rates enables informed choices that can help you get lower auto insurance prices.
Shown below are a few of the “ingredients” auto insurance companies consider when setting your rates.
- Being married is a good thing – Having a wife or husband actually saves money when buying auto insurance. Having a spouse usually means you are more mature and responsible and it’s statistically proven that married couples file fewer claims.
- How many coverages with the same company – Many auto insurance companies will give a discount to policyholders who consolidate policies with them, otherwise known as a multi-policy discount. If you currently are using one company, you may still want to compare rates to make sure you are getting the best deal.
- Is your vehicle built for speed? – The performance of the vehicle you drive makes a huge difference in how high your rates are. The lowest base rates are generally reserved for lower performance four cylinder passenger cars, but the cost you end up paying is determined by many additional factors.
- Where you reside plays a part – Residing in a small town is a positive aspect when buying auto insurance. Urban drivers have to deal with more traffic problems and a longer drive to work. Fewer people means fewer accidents.
- Never go without insurance – Allowing your auto insurance policy to lapse will be a fast way to bump up your auto insurance costs. Not only will rates go up, but being ticketed for driving with no insurance will get you a hefty fine and possibly a revoked license.
- Lower rates with optional equipment – Driving a car with an alarm system can help lower your rates. Theft prevention features like LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system all hinder your car from being stolen.
- Liability coverage protects you – Liability insurance is the coverage that protects you in the event that you are found to be at fault for personal injury or accident damage. Liability insurance provides legal defense coverage which can cost thousands of dollars. Liability is cheap compared to physical damage coverage, so drivers should carry high limits.
You are unique and your auto insurance should be too
When it comes to choosing the right insurance coverage for your vehicles, there isn’t really a single plan that fits everyone. Everyone’s situation is unique so your insurance should reflect that These are some specific questions can aid in determining if you would benefit from an agent’s advice.
- When should I drop full coverage on my vehicle?
- Am I covered when driving a rental car?
- Is my babysitter covered when using my vehicle?
- Am I covered by my spouse’s policy after a separation?
- Is Mississippi a no-fault state?
- Can my teen driver be rated on a liability-only vehicle?
- Am I getting all the discounts available?
- Can I afford to pay high deductible claims out of pocket?
If you’re not sure about those questions but you think they might apply to your situation, then you may want to think about talking to a licensed insurance agent. To find lower rates from a local agent, complete this form or you can go here for a list of companies in your area. It is quick, free and can provide invaluable advice.
Ads can be misleading
Mississippi consumers get pounded daily by advertisements for car insurance savings by companies like Progressive, Allstate and Geico. All the companies make the same claim that you can save if you switch to them.
How does each company make almost identical claims?
All the different companies can use profiling for the type of customer that earns them a profit. For instance, a desirable insured could possibly be between 30 and 50, owns a home, and drives newer vehicles. Any driver who fits that profile is entitled to the best price and most likely will cut their rates substantially.
Potential customers who are not a match for the requirements will be charged a higher premium and this can result in business going elsewhere. The ads state “drivers who switch” not “people who quote” save that much. This is how insurance companies can confidently advertise the way they do.
That is why drivers should quote coverage with many companies. It is impossible to predict which insurance companies will provide you with the cheapest rates.
Additional consumer information websites
Much more information about auto insurance in Mississippi is available on the website for the Mississippi Insurance Department through this link. Mississippi drivers can get help finding coverage, find a variety of consumer forms, find disaster information, and learn about insurance regulations.
Affordable insurance is out there
As you restructure your insurance plan, never buy poor coverage just to save money. Too many times, an accident victim reduced liability limits or collision coverage only to regret at claim time they didn’t have enough coverage. Your aim should be to purchase a proper amount of coverage at a price you can afford while not skimping on critical coverages.
Discount auto insurance is definitely available both online and also from your neighborhood Jackson agents, and you need to price shop both to have the best selection. Some insurance companies may not provide online price quotes and many times these smaller companies only sell through independent insurance agents.