Are you intimidated by the crazy number of auto insurance companies in Watertown? You have a lot of company. You have so many choices that it can turn into a big hassle to locate the lowest price.
Consumers need to check auto insurance prices once or twice a year because prices change frequently. Just because you found the best price a couple years back you can probably find a lower rate today. Starting now, forget all the misinformation about auto insurance because we’re going to show you the proper way to lower your annual insurance bill.
Finding the best rates in Watertown is not that difficult. If you have car insurance now, you will most likely be able to cut costs considerably using these tips. But South Dakota car owners benefit from understanding how big insurance companies market insurance on the web and apply this information to your search.
Don’t miss out on these money-saving discounts
Companies offering auto insurance don’t list all their discounts very well, so here is a list some of the best known and the harder-to-find ways to save on auto insurance.
- Multiple Cars – Having all your vehicles on one policy could earn a price break for each car.
- 55 and Retired – If you’re over the age of 55, you may receive better auto insurance rates.
- Seat Belts Save more than Lives – Using a seat belt and requiring all passengers to use their safety belts could cut 10% or more off the personal injury premium cost.
- Driver’s Ed – Cut your cost by having your teen driver take driver’s ed class in school.
- No Accidents – Drivers who don’t have accidents pay much less compared to accident-prone drivers.
- Payment Discounts – If you pay your entire premium ahead of time instead of making monthly payments you can actually save on your bill.
- Theft Prevention Discount – Vehicles equipped with anti-theft or alarm systems prevent vehicle theft and therefore earn up to a 10% discount.
- E-sign – Certain companies will discount your bill up to fifty bucks simply for signing digitally online.
- Military Rewards – Having a family member in the military may qualify for rate reductions.
Drivers should understand that most discount credits are not given to your bottom line cost. Some only apply to specific coverage prices like liability, collision or medical payments. So even though they make it sound like adding up those discounts means a free policy, it doesn’t quite work that way.
Which Auto Insurance is Cheapest in Watertown, South Dakota?
There are several ways to compare rate quotes from auto insurance companies in your area. By far the easiest way to compare insurance prices is to get quotes online. This is very easy and can be done in a couple of different ways.
- The fastest way consumers can make multiple comparisons is a comparison rater form (click to open form in new window). This method prevents you from having to do repetitive form entry to each individual auto insurance company. One form submission gets you coverage quotes direct from many companies.It’s the quickest way to get rates.
- A more difficult way to get quotes online is going to each company website and fill out their own quote form. For instance, let’s assume you want to compare Auto-Owners, Allstate and GEICO. To get each rate you have to spend time on each company’s site and enter your information, which is why the first method is more popular.
For a handy list of car insurance company links in Watertown, click here.
It doesn’t matter which method you choose, just be sure to compare the exact same information for each price quote. If you are comparing unequal deductibles or liability limits it’s not possible to determine the lowest rate in Watertown. Just a small difference in coverages can mean a large discrepancy in price. Keep in mind that having more price comparisons gives you a better chance of getting a lower rate.
Lower the Price of Insurance with These Tips
Consumers need to have an understanding of the factors that help determine the price you pay for auto insurance. When you know what positively or negatively determines base rates empowers consumers to make smart changes that can help you get better auto insurance rates.
The following are some of the factors used by your company to calculate your rates.
- Too many auto insurance claims drive up costs – If you frequently file small claims, you can look forward to either a policy non-renewal or much higher rates. Auto insurance companies in South Dakota award discounts to insureds who do not rely on their insurance for small claims. Auto insurance is intended for larger claims.
- Sex matters – Statistics have proven women tend to be less risk to insure than men. That doesn’t necessarily mean that women are better drivers. Women and men have accidents at a similar rate, but the male of the species cause more damage. Men also tend to receive more costly citations like DUI and reckless driving. Male drivers age 16 to 19 are several times more likely to be in an accident and therefore have the most expensive auto insurance rates.
- Marriage pays dividends – Having a wife or husband can get you a discount when buying auto insurance. Marriage translates into being more mature and it’s proven that drivers who are married are more cautious.
- Adjust deductibles and save – The deductibles define the amount you are required to spend if you file a covered claim. Coverage for physical damage, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. Some instances where coverage would apply could be running into the backend of another car, damage caused by hail, and burglary. The higher the amount you are required to pay out-of-pocket, the bigger discount you will receive.
- Do you need the policy add-ons? – There are a lot of additional coverages that can waste your money on your auto insurance policy. Insurance for personal injury protection, accident forgiveness and term life insurance may be wasting your money. They may seem like a good idea initially, but if they’re wasting money eliminate the coverages to reduce your premium.
- Liability coverage is peace of mind – Your policy’s liability coverage will protect you when a jury decides you are liable for personal injury or accident damage. It provides you with a defense in court up to the limits shown on your policy. Liability insurance is quite affordable as compared to coverage for physical damage, so buy as much as you can afford.
Ads can be misleading
Companies like Allstate, GEICO and Progressive continually stream ads on television and other media. All the ads have a common claim of big savings after switching to their company. How does each company make almost identical claims?
All companies have a certain “appetite” for the driver that makes them money. An example of a preferred risk might be between 25 and 40, has no prior claims, and has great credit. Any new insured who meets those qualifications will qualify for the lowest rates and is almost guaranteed to cut their rates substantially.
Drivers who do not match this ideal profile will be charged more money and this can result in the driver buying from a lower-cost company. Company advertisements say “drivers who switch” but not “drivers who get quotes” save that much money. That’s the way insurance companies can confidently advertise the savings. That is why it’s extremely important to get quotes from several different companies. It’s impossible to know which auto insurance company will provide you with the cheapest rates.
A little work can save a LOT of money
When shopping online for auto insurance, make sure you don’t sacrifice coverage to reduce premiums. There have been many cases where someone dropped uninsured motorist or liability limits and learned later that the few dollars in savings costed them thousands. The ultimate goal is to find the BEST coverage for the lowest price while not skimping on critical coverages.
Budget-conscious auto insurance is available online and also from your neighborhood Watertown agents, and you should be comparing both to have the best chance of lowering rates. Some insurance companies may not provide the ability to get a quote online and many times these small, regional companies only sell through independent insurance agents.
In this article, we covered many ways to reduce auto insurance prices online. The most important thing to understand is the more rate quotes you have, the better your chances of lowering your rates. Consumers could even find that the most savings is with some of the lesser-known companies.
Learn more about South Dakota auto insurance
Even more information can be found at the South Dakota Division of Insurance website. Visitors are able to learn about specific coverages, read enforcement actions against agents and companies, view agent and company licensing information, and read industry bulletins.