Feel like you have an underperforming, overpriced auto insurance policy? It’s quite common and there are lots of people in the same boat. Big companies like GEICO and Progressive constantly bombard you with ad campaigns and it can be hard to not get sucked in by the cute commercials and take the time to shop coverage around.
Informed consumers can cut their premiums
Multiple criteria are considered when premium rates are determined. Most are fairly basic like a motor vehicle report, but other criteria are not as apparent such as whether you are married or your vehicle rating.
- Driving citations drive up premiums – Having a clean driving record impacts your car insurance rates tremendously. Just one moving violation can boost insurance rates by as much as thirty percent. Attentive drivers have lower premiums than bad drivers. Drivers who get serious violations such as DUI or willful reckless driving may be required to maintain a SR-22 with their state DMV in order to keep their license.
- Fewer miles means better costs – The higher the miles on your car in a year’s time the more it will cost to insure it. Most companies calculate rates based upon how the vehicle is primarily used. Cars and trucks that do not get driven very much cost less to insure compared to those used for work or business. Double check that your auto insurance policy reflects the proper vehicle usage, because it can save money.
- Save money by raising coverage deductibles – Insurance for physical damage, otherwise known as comp (or other than collision) and collision, covers damage that occurs to your car. Examples of some claims that would be covered are colliding with a building, collision with an animal, and having your car stolen. Your deductibles are the amount of money you are willing to pay in the event of a claim. The larger the amount you pay before a claim is paid (deductible), the less money you will pay for auto insurance.
- Your address can impact price – Residing in less populated areas of the country has it’s advantages when buying auto insurance. Less people translates into fewer accidents in addition to fewer liability claims. City drivers have to deal with more auto accidents and more time behind the wheel. Higher commute times means a statistically higher chance of an accident.
- Youthful drivers pay more – Drivers with little experience have been known to be more careless when driving with friends and because of this, their auto insurance rates are much higher. Parents adding a young driver onto your auto insurance can break the bank. More mature drivers have been proven to be more responsible, cause fewer claims and accidents and get fewer tickets.
More discounts mean lower premiums
Some companies don’t necessarily list their entire list of discounts in a way that’s easy to find, so the following list contains a few of the more common and the harder-to-find discounts that may be available.
- Responsible Drivers – Insureds without accidents may save up to 50% more as compared to drivers with claims.
- Theft Deterent – Cars and trucks equipped with anti-theft or alarm systems are stolen with less frequency and therefore earn up to a 10% discount.
- Pay Early and Save – By making one initial payment instead of monthly or quarterly installments you could save 5% or more.
- Own a Home – Just being a homeowner can help you save on auto insurance because maintaining a house demonstrates responsibility.
- Organization Discounts – Being a member of a qualifying organization is a simple method to lower premiums when shopping for auto insurance.
- Senior Citizen Discount – If you’re over the age of 55, you may qualify for a discount up to 10%.
- Multiple Policy Discount – If you can bundle your home and auto insurance and insure them both with the same insurance company you will save up to 20% and get you .
- Discounts for New Vehicles – Putting auto insurance coverage on a new car can cost up to 25% less since newer models have better safety ratings.
It’s important to note that most discount credits are not given to the overall cost of the policy. Most cut individual premiums such as comp or med pay. So when the math indicates you can get free auto insurance, nobody gets a free ride. But all discounts will help lower your overall premium however.
Companies and a partial list of their discounts are outlined below.
- 21st Century has discounts for early bird, defensive driver, anti-lock brakes, good student, and homeowners.
- Progressive includes discounts for multi-policy, continuous coverage, good student, online signing, and homeowner.
- State Farm discounts include Drive Safe & Save, accident-free, multiple autos, good student, Steer Clear safe driver discount, multiple policy, and safe vehicle.
- Nationwide may include discounts for Farm Bureau membership, multi-policy, good student, business or organization, defensive driving, easy pay, and family plan.
- Esurance offers discounts for homeowner, anti-lock brakes, Switch & Save, multi-policy, multi-car, online shopper, and Pac-12 alumni.
- The Hartford offers discounts including good student, air bag, vehicle fuel type, anti-theft, driver training, and defensive driver.
Double check with each company or agent which discounts they offer. Some of the earlier mentioned discounts might not apply everywhere. To choose companies that provide some of the discounts listed above in Iowa, click here to view.<img class="alignright" style="padding-top:15px;" src="https://www.carinsurancediy.com/wp-content/uploads/ci175-111.jpg" alt="Cherokee Iowa car insurance prices”/>
Can you really save $430 a year?
GEICO, State Farm and Progressive constantly bombard you with television and radio advertisements. They all seem to convey the message that people will save if you move your policy. How do they all have lower policy pricing? It’s all in the words they use.
All companies offer their best rates for the right customer that will most likely be profitable. One example of a desirable risk might be between the ages of 30 and 50, carries high limits, and has a high credit rating. Any driver who matches that profile receives the best prices as well as cut their rates if they switch.
Drivers who may not quite match this stringent profile will see more expensive rates and this can result in the customer not buying. The trick is to say “drivers who switch” not “everybody who quotes” save that much. This is how insurance companies can confidently make claims that they all have the best rates.
This really illustrates why you absolutely need to quotes from several different companies. It is impossible to predict the company that will give you the biggest savings.
Additional information can be read on the . Click here for link. Consumers can read state legal mandates and laws, download brochures, and find a variety of consumer forms.
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Leave no stone unturned
You just learned some good ideas how to compare auto insurance rates online. The most important thing to understand is the more rate quotes you have, the better your chances of lowering your car insurance rates. You may be surprised to find that the best price on auto insurance is with a small mutual company. Some small companies can often provide lower car insurance rates in certain areas than the large multi-state companies such as Allstate or State Farm.
When trying to cut insurance costs, it’s very important that you do not reduce coverage to reduce premium. There are many occasions where an accident victim reduced comprehensive coverage or liability limits only to find out that saving that couple of dollars actually costed them tens of thousands. The aim is to purchase a proper amount of coverage for the lowest price and still be able to protect your assets.