Sick and tired of paying out the nose to buy car insurance? You are no different than many other Colorado consumers. Insurance companies such as Progressive, GEICO and Farmers Insurance all claim big savings with fancy advertisements and it can be hard to ignore the promise of big savings and find the best price available.
It’s smart to shop coverage around at least once a year since rates change quite often. Even if you think you had the best price six months ago there may be better deals available now. You can find a lot of wrong information about car insurance online, so with this article, you’re going to get a bunch of ideas how to find affordable car insurance.
If you have insurance now or are looking for a new policy, you can follow these tips to find better prices and still get good coverage. Finding the best rates in Erie is not rocket science. Colorado consumers just need to know the proper way to get comparison rates online.
Smart Buyers can Save Money
Consumers need to have an understanding of the different types of things that play a part in calculating the rates you pay for car insurance. Knowing what controls the rates you pay helps enable you to make changes that will entitle you to better car insurance rates.
Shown below are a few of the “ingredients” that factor into prices.
- Cautious drivers pay less – Drivers who don’t get tickets tend to pay less for car insurance compared to drivers with tickets. Only having one citation can bump up the cost twenty percent or more. Drivers with flagrant tickets like DUI or reckless driving are required to file a proof of financial responsibility form (SR-22) to the state department of motor vehicles in order to keep their license.
- High crash test scores lower rates – Cars with high safety ratings can get you lower premiums. Safe vehicles protect occupants better and lower injury rates means less money paid by your insurance company and lower rates for you.
- Never go without insurance – Driving with no insurance is a misdemeanor and you will pay a penalty because you let your coverage have a gap. And not only will your rates increase, failure to provide proof of insurance may earn you a steep fine or even jail time.
- Extra coverages can waste money – There are a ton of extra coverages that can waste your money if you aren’t careful. Things like roadside assistance, accident forgiveness and term life insurance may be costing you every month. These may sound like a good investment when talking to your agent, but if they’re wasting money remove them from your policy.
- Your occupation can affect rates – Did you know your occupation can influence how much you pay for car insurance? Careers like real estate brokers, business owners and dentists are shown to have the highest average rates because of job stress and long work days. Other professions such as pilots, historians and homemakers pay the least.
- More than one policy can earn a discount – The majority of companies will award you with lower prices to people who buy several policies from them, otherwise known as a multi-policy discount. If you currently are using one company, you still need to comparison shop to make sure you are getting the best deal. Consumers may find better rates by buying car insurance from a different company.
- Do you have enough liability coverage? – The liability section of your policy will protect you in the event that a jury decides you are liable for damages from an accident. Liability insurance provides for a legal defense which can cost thousands of dollars. Liability is cheap compared to insuring for physical damage coverage, so buy as much as you can afford.
Compare the Market for Car Insurance in Erie
Getting better car insurance pricing is not rocket science. The only requirement is to invest a little time comparing rates online from several insurance companies. It is quite easy and can be accomplished in a couple of different ways.
- Probably the best way to find low rates is to use a rate comparison form like this one (opens in new window). This easy form prevents you from having to do a different quote for every car insurance company. Completing one form gets rate comparisons from all major companies.
- A different way to get quotes online is to take the time to go to each company website and request a quote. For instance, we’ll pretend you want comparison quotes from Allstate, State Farm and Farmers. To find out each rate you need to go to every website to enter your coverage information, which is why the first method is more popular.
For a list of links to insurance companies in Erie, click here.
It doesn’t matter which method you choose, just ensure you are comparing the exact same quote information for each price quote. If you compare mixed coverages you can’t possibly make an equal comparison in Erie.
Colorado consumers constantly see and hear ads for cheaper car insurance by companies like Allstate, GEICO and Progressive. They all make the same claim that you can save if you change to them.<img class="alignright" style="padding-top:15px;" src="https://www.carinsurancediy.com/wp-content/uploads/ci175-104.jpg" alt="Erie Colorado car insurance quote”/>
But how can every company make almost identical claims? It’s all in the numbers.
All the different companies can use profiling for the type of customer that earns them a profit. An example of a desirable insured could be between 25 and 40, is a homeowner, and has excellent credit. A driver who matches those parameters will get the preferred rates and is almost guaranteed to cut their rates substantially.
Drivers who fall outside these standards will be quoted higher premiums and ends up with the customer not buying. The ads state “drivers who switch” not “people who quote” save that kind of money. That’s the way companies can state the savings. This emphasizes why you should compare as many rates as you can. It’s just too difficult to predict the company that will provide you with the cheapest rates.
Do you qualify for a discount?
Car insurance companies don’t always publicize all their discounts in an easy-to-find place, so here is a list some of the more common as well as the least known savings tricks you should be using. If they aren’t giving you every credit you qualify for, you are paying more than you should be.
- Pay Now and Pay Less – If you pay your bill all at once rather than paying monthly you can actually save on your bill.
- Passive Restraints and Air Bags – Vehicles with factory air bags and/or automatic seat belt systems can receive discounts of 20% or more.
- Defensive Driver – Taking part in a course in driver safety could possibly earn you a 5% discount if your company offers it.
- 55 and Retired – Mature drivers may qualify for a discount up to 10%.
- Low Mileage – Keeping the miles down could be rewarded with better rates on cars that stay parked.
- Discount for Swiching Early – Some insurance companies reward drivers for switching to them before your current expiration date. The savings is around 10%.
- Student in College – Youth drivers who live away from home and do not have a car may qualify for this discount.
- Discount for New Cars – Adding a new car to your policy can save up to 30% compared to insuring an older model.
- Employee of Federal Government – Active or retired federal employment may qualify you for a discount depending on your company.
Keep in mind that some credits don’t apply to your bottom line cost. The majority will only reduce individual premiums such as physical damage coverage or medical payments. So despite the fact that it appears you could get a free car insurance policy, car insurance companies aren’t that generous.
What coverages do I need?
When it comes to buying the right insurance coverage, there really is not a perfect coverage plan. Your needs are not the same as everyone else’s so your insurance should reflect that Here are some questions about coverages that can help discover whether you might need an agent’s assistance.
- Should I file a claim if it’s only slightly more than my deductible?
- I have good health insurance, so how much medical payments coverage do I need?
- Can I rate high risk drivers on liability-only vehicles?
- Do I have coverage when using my vehicle for my home business?
- Am I covered by my spouse’s policy after a separation?
- Do I have coverage when pulling a U-Haul trailer?
- Do I pay less if my vehicle is kept in my garage?
- If my vehicle is totaled, can I afford another vehicle?
- Can I pay claims out-of-pocket if I buy high deductibles?
- How much underlying liability do I need for an umbrella policy?
If it’s difficult to answer those questions, then you may want to think about talking to a licensed insurance agent. To find an agent in your area, complete this form or you can go here for a list of companies in your area. It only takes a few minutes and can help protect your family.
Additional detailed information can be read at the Colorado DORA Division of Insurance website. Colorado consumers can learn about insurance regulations, read enforcement actions against agents and companies, and download brochures.
Other related articles:
- Ultimate Strategies for Cheap Erie Auto Insurance
- Erie Car Insurance Savings the Insurance Companies Dont Want You to Know About
- 8 Discounts Erie Drivers Miss when Shopping for Car Insurance Online
Affordable insurance is out there
Low-cost car insurance can be sourced online and with local Erie insurance agents, and you need to comparison shop both in order to have the best chance of saving money. A few companies do not offer online price quotes and most of the time these smaller companies sell through independent agents.
As you prepare to switch companies, it’s very important that you do not reduce needed coverages to save money. There have been many cases where someone sacrificed physical damage coverage to discover at claim time that the few dollars in savings costed them thousands. Your strategy should be to get the best coverage possible for the lowest price while not skimping on critical coverages.