Have you fallen victim to an overpriced auto insurance policy? Believe me, many consumers are feeling buyer’s remorse and feel like there’s no way out. Having so many choices, it is very difficult to find the most cost effective car insurance company.
Do you qualify for discounts?
Insuring your vehicles can cost a lot, but companies offer discounts that you may not know about. Some discounts apply automatically when you get a quote, but a few need to be asked about prior to getting the savings. If you don’t get every credit you qualify for, you are throwing money away.
- Homeowners Discount – Simply owning a home may trigger a auto insurance policy discount because of the fact that having a home is proof that your finances are in order.
- Auto/Home Discount – If you insure your home and vehicles with the same insurance company you will save approximately 10% to 15%.
- Clubs and Organizations – Being a member of certain professional organizations may earn a discount on auto insurance.
- Safety Course Discount – Completing a driver safety course could possibly earn you a 5% discount depending on where you live.
- Good Student Discount – A discount for being a good student can save 20 to 25%. This discount can apply up to age 25.
Keep in mind that some credits don’t apply to the entire cost. Some only reduce the price of certain insurance coverages like comprehensive or collision. So despite the fact that it appears you could get a free auto insurance policy, companies don’t profit that way. But all discounts will reduce your premiums.
To choose companies offering auto insurance discounts in Walkersville, click here.
Smart Buyers can Save Money
Smart consumers have a good feel for some of the elements that help determine auto insurance rates. Understanding what determines base rates allows you to make educated decisions that will entitle you to much lower annual insurance costs.
- Your spouse saves you money – Having a spouse actually saves money on auto insurance. Having a significant other translates into being more mature than a single person and statistics show married couples file fewer claims.
- Keep rates low by being claim-free – Auto insurance companies in Maryland provide better rates to policyholders who file claims infrequently. If you frequently file small claims, you can pretty much guarantee either a policy non-renewal or much higher rates. Auto insurance is intended to be relied upon for larger claims.
- Do you know you’re credit rating? – Your credit score is a important factor in calculating your auto insurance rates. Therefore, if your credit history is lower than you’d like, you could pay less to insure your by spending a little time repairing your credit. Consumers who have high credit scores tend to be less risk to insure than those with poor credit.
- What type of vehicle do you drive? – The performance level of the vehicle you are insuring makes a big difference in your rates. Lower performance four cylinder passenger models usually have the lowest rates, but the final cost of insurance is determined by many other factors.
- Younger drivers pay higher rates – Mature drivers are more responsible, statistically cause fewer accidents and are safer drivers. Teen drivers tend to get distracted easily in a vehicle and because of this, their auto insurance rates are much higher.
- Bundling policies can get discounts – Some companies will give a discount to customers who buy several policies from them such as combining an auto and homeowners policy. This can amount to anywhere from five to ten percent in most cases. Even with this discount, it’s still a good idea to comparison shop to verify if the discount is saving money. Drivers may still find a better deal by splitting coverages up.
- Where do you drive? – The higher the mileage driven in a year the higher your rate. Most insurance companies apply a rate based on their usage. Vehicles not used for work or commuting can get a lower rate than those used for commuting. Ask your agent if your auto insurance declarations sheet is rated on the correct usage for each vehicle, because it can save money.
- Never let your coverage lapse – Driving without insurance is a misdemeanor and as a result your rates will increase for letting your insurance lapse. And not only will insurance be more expensive, failure to provide proof of insurance can result in a steep fine or even jail time.You may then be required to provide proof of insurance in the form of an SR-22 filing with the Maryland motor vehicle department to get your license reinstated.
Are you falling for claims of savings?
Maryland consumers can’t get away from ads for car insurance savings from companies such as Allstate and Progressive. All the companies make an identical promise that you’ll save big if you change your policy.
How does each company make almost identical claims? It’s all in the numbers.
Insurance companies are able to cherry pick for the type of customer they prefer to insure. An example of a profitable customer might be profiled as between the ages of 30 and 50, has no tickets, and has a high credit rating. A propective insured who matches those parameters receives the best rates and is almost guaranteed to save when switching.
Potential insureds who don’t measure up to the “perfect” profile will be quoted more money which usually ends up with business not being written. Company advertisements say “people who switch” not “everyone that quotes” save money. That’s why insurance companies can confidently claim big savings.
This emphasizes why it is so important to quote coverage with many companies. It’s impossible to know which company will fit your personal profile best.
For more reading
More information can be read on the website for the Maryland Insurance Administration. Click here for link. Visitors are able to discover disciplinary actions, find out which companies have the most complaints, find disaster information, and file complaints about a company.
Online plus local equals savings
We just presented a lot of tips how to lower your auto insurance rates. The key concept to understand is the more rate quotes you have, the better your chances of lowering your rates. You may be surprised to find that the best price on auto insurance is with a company that doesn’t do a lot of advertising. These smaller insurers often have lower prices on specific markets than their larger competitors like GEICO and State Farm.
As you prepare to switch companies, never buy less coverage just to save a little money. In many cases, consumers will sacrifice liability limits or collision coverage only to find out that the small savings ended up costing them much more. Your goal should be to buy a smart amount of coverage at a price you can afford while not skimping on critical coverages.
The cheapest auto insurance is attainable on the web and with local Walkersville insurance agents, and you should be comparing both to have the best rate selection. Some insurance providers do not offer online price quotes and most of the time these small, regional companies sell through independent agents.