Are you overwhelmed by the number of car insurance options in Takoma Park? Many other consumers are too. There are so many options available that it can easily become a real challenge to locate the lowest price.
What determines how much you pay?
It’s important that you understand some of the elements that play a part in calculating the rates you pay for car insurance. Knowing what determines base rates enables informed choices that can help you get lower car insurance prices.
Shown below are a partial list of the pieces car insurance companies consider when setting your rates.
- Multi-policy discounts can save money – Most insurance companies will give a discount to people who consolidate policies with them, otherwise known as a multi-policy discount. Even if you’re getting this discount it’s in your best interest to compare rates to make sure you are getting the best deal.
- Being married is a good thing – Having a wife or husband helps lower the price when buying car insurance. Having a spouse is viewed as being more mature than a single person and it’s statistically proven that drivers who are married are more cautious.
- Lower rates with optional equipment – Owning a car with a theft deterrent system can help lower your rates. Anti-theft devices such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can help prevent car theft.
- Do you work long hours in a high stress job? – Did you know that where you work can have an impact on rates? Jobs such as doctors, executives and dentists are shown to have the highest average rates because of high stress levels and long work hours. Other occupations like pilots, historians and homemakers pay the least.
- Men fork out a little more – Statistics show that men are more aggressive behind the wheel. Now that doesn’t mean women are BETTER drivers than men. Men and women cause accidents in similar numbers, but the men tend to have more serious accidents. Men also statistically receive more costly citations such as DWI and reckless driving.
- Type of vehicle determines base rates – The make and model of the vehicle you own makes a big difference in your rates. The lowest rates are generally reserved for small economy passenger cars, but there are many factors that impact the final cost.
- Poor driving leads to higher costs – Whether or not you get tickets has a lot to do with how much you pay for insurance. Careful drivers have lower premiums compared to drivers with tickets. Only having one citation can boost insurance rates forty percent or more. Drivers with flagrant tickets like reckless driving, hit and run or driving under the influence are required to submit a SR-22 or proof of financial responsibility with their state motor vehicle department in order to keep their license.
- The more you drive the more you pay – The more you drive in a year’s time the more you will pay for car insurance. Most insurance companies price each vehicle’s coverage based on their usage. Cars and trucks left parked in the garage can get a lower rate as compared to vehicles used primarily for driving to work. Make sure your car insurance policy is rated on the correct driver usage, because it can save money.
Save big with these discounts
Car insurance companies do not list every available discount very clearly, so we researched some of the best known and the more hidden savings tricks you should be using.
- Lower Rates for Military – Having a family member in the military can result in better rates.
- Homeowners Discount – Being a homeowner may earn you a small savings because of the fact that having a home requires personal responsibility.
- No Accidents – Drivers who don’t have accidents pay less compared to bad drivers.
- Multi-policy Discount – When you combine your home and auto insurance with the same company you may save up to 20% off your total premium.
- Discount for New Cars – Insuring a new car can save up to 30% due to better safety requirements for new cars.
- Seat Belts Save – Buckling up and requiring all passengers to use their safety belts could cut 10% or more off your medical payments premium.
It’s important to understand that some of the credits will not apply to all coverage premiums. Most only apply to the price of certain insurance coverages like comprehensive or collision. So when the math indicates you can get free auto insurance, companies wouldn’t make money that way.
To choose insurance companies with discount car insurance rates in Maryland, click this link.
But I don’t know anything about car insurance
When buying coverage, there is no “perfect” insurance plan. Everyone’s situation is unique.
Here are some questions about coverages that can help discover if your insurance needs will benefit from professional help.
- What are Maryland no-fault laws?
- Why am I required to buy high-risk coverage?
- Can my teen driver be rated on a liability-only vehicle?
- Are there companies who specialize in insuring high-risk drivers?
- Do I need rental car coverage?
- Why is insurance for a teen driver so high in Takoma Park?
- Does my insurance cover damage caused when ticketed for reckless driving?
If you don’t know the answers to these questions but you know they apply to you then you might want to talk to a licensed insurance agent. If you don’t have a local agent, simply complete this short form.
Additional detailed information is available at the Maryland Insurance Administration website. Maryland drivers can find out industry alerts, discover disciplinary actions, download brochures, and view a list of available companies.
Final thoughts
When you buy insurance online, it’s a bad idea to buy lower coverage limits just to save a few bucks. There are a lot of situations where consumers will sacrifice liability limits or collision coverage only to find out that the savings was not a smart move. The proper strategy is to purchase plenty of coverage at a price you can afford while not skimping on critical coverages.
Drivers change insurance companies for a number of reasons such as being labeled a high risk driver, unfair underwriting practices, delays in responding to claim requests and even high rates after DUI convictions. Regardless of your reason for switching companies, finding a new car insurance company is easier than you think.
Throughout this article, we presented many tips how you can shop for car insurance online. The key concept to understand is the more price quotes you have, the better chance you’ll have of finding lower rates. You may even discover the best prices are with a small local company.