No one likes having to buy auto insurance, particularly when they are paying too much. Online insurance companies like State Farm, Progressive and Geico increase brand awareness with advertising and it can be hard to see through the cute green geckos and mayhem and do the work needed to find the best deal.
If you have insurance now or are looking for a new policy, you can follow these tips to reduce the price you pay and possibly find even better coverage. Choosing the best insurance company for you in Fayetteville is easy if you know what you’re doing. North Carolina vehicle owners just need to know the proper methods to get comparison quotes over the internet.
Get Cheaper Rates by Understanding Pricing
Consumers need to have an understanding of the factors that play a part in calculating your auto insurance rates. Understanding what determines base rates empowers consumers to make smart changes that could result in big savings.
- The more you drive the more you pay – Driving more miles every year the more you will pay for auto insurance. Most insurance companies rate vehicles based upon how you use the vehicle. Cars used primarily for pleasure use can get a lower rate than those used for commuting. Double check that your auto insurance coverage is showing the proper vehicle usage, because it can save money.
- Higher safety ratings means cheaper insurance – Cars with high safety ratings get lower rates. Safer cars protect occupants better and fewer injuries translates into fewer and smaller insurance claims and thus lower rates.
- Never let your coverage lapse – Having an insurance coverage lapse is a guaranteed way to pay more for auto insurance. Not only will you pay more, getting caught without coverage may earn you a license revocation or jail time.You may have to file a SR-22 with the North Carolina department of motor vehicles.
- Being married can save on auto insurance – Getting married actually saves money on auto insurance. It usually means you are more mature and responsible and it’s proven that married drivers get in fewer accidents.
- Optional equipment can affect rates – Choosing a vehicle with an alarm system can help bring down rates. Theft prevention features such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can thwart car theft.
- An active claims history can cost you – If you frequently file small claims, you can definitely plan on either higher rates or even cancellation. Companies in North Carolina give lower rates to policyholders who do not file claims often. Car insurance is intended for major claims that would cause financial hardship.
- How credit affects auto insurance rates – Having a bad credit score is a important factor in determining your rates. Drivers who have high credit ratings tend to be better drivers and file fewer claims as compared to drivers with lower ratings. If your credit rating is low, you could be paying less to insure your by improving your credit score.
- Older drivers pay less – Mature drivers are more responsible, tend to file fewer claims and get fewer tickets. Teen drivers tend to be more careless in a vehicle therefore auto insurance rates are much higher.
Save big with these discounts
The price of auto insurance can be rather high, but discounts can save money and there are some available that can drop the cost substantially. A few discounts will automatically apply when you get a quote, but lesser-known reductions have to be asked about before you will receive the discount. If you’re not getting every credit available, you’re paying more than you need to.
- Homeowners Pay Less – Simply owning a home can help you save on auto insurance because maintaining a house demonstrates responsibility.
- Fewer Miles Equal More Savings – Driving fewer miles could be rewarded with a substantially lower rate.
- Discount for Swiching Early – Some companies give discounts for switching policies prior to your current policy expiring. 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.
- Passive Restraints and Air Bags – Cars that have air bags or automatic seat belts can receive discounts of more than 20%.
- Military Discounts – Having a deployed family member could mean lower rates.
- Student Driver Training – Cut your cost by having your teen driver enroll in driver’s education if offered at their school.
- Anti-lock Brakes – Cars that have steering control and anti-lock brakes prevent accidents and will save you 10% or more.
- Accident Free – Drivers who don’t have accidents can earn big discounts when compared with bad drivers.
Drivers should understand that some credits don’t apply to the entire cost. Some only apply to the price of certain insurance coverages like collision or personal injury protection. So when the math indicates all those discounts means the company will pay you, auto insurance companies aren’t that generous. But all discounts will bring down the cost of coverage.
To learn even more about auto insurance
More information can be read on the website for the North Carolina Department of Insurance through this link. Visitors are able to read industry bulletins, read enforcement actions against agents and companies, and read consumer alerts.
As you restructure your insurance plan, do not buy poor coverage just to save money. In many cases, consumers will sacrifice liability limits or collision coverage only to regret that it was a big mistake. Your aim should be to buy a smart amount of coverage for the lowest price.
In this article, we covered quite a bit of information on how to compare auto insurance prices online. The key concept to understand is the more rate quotes you have, the better your comparison will be. You may even discover the lowest premiums are with a small mutual company. These companies often have lower prices on specific markets than their larger competitors like Allstate or State Farm.