No car owner fancies paying their premiums for auto insurance, in particular when the cost is too high. Due to the large number of insurance providers from which to choose, it is hard for the average consumer to choose a more affordable company.
It’s a great practice to get comparison quotes occasionally because insurance prices are constantly changing. Even if you think you had the best price a couple years back the chances are good that you can find a lower rate quote today. Ignore everything you know about auto insurance because you’re going to learn the only way to lower your annual insurance bill.
Buying car insurance in Pea Ridge is not that difficult. Just about anyone who buys auto insurance will most likely be able to lower their premiums. But Arkansas drivers must know how insurance companies determine prices because it can help you find the best coverage.
Effectively comparing auto insurance prices can be exhausting if you don’t understand the fastest way to get free quotes. You can spend countless hours talking to insurance agencies in Pea Ridge, or you could save time and use online quoting to get rates in a matter of minutes.
Most of the larger companies belong to an insurance system that enables customers to submit one quote, and each company returns a competitive quote for coverage. This saves time by eliminating quotation requests for every auto insurance company.
To find out what other companies charge click here to open in new window.
The one downside to using this type of system is you are unable to specify the companies to get quotes from. If you would rather choose specific providers for rate comparison, we have a listing of the cheapest auto insurance companies in Arkansas. Click to view list.
It’s up to you which method you use, but make darn sure you compare the same coverage data for every quote you compare. If you use different values for each quote it’s not possible to determine the best price in Pea Ridge. Slightly different coverage limits can make a big difference in price. And when quoting auto insurance, remember that more quotes provides better odds of finding more affordable insurance. Some regional insurers cannot provide online price quotes, so you also need to get price quotes from them as well.
Auto insurance advertisements
Auto insurance providers like State Farm, Allstate and GEICO regularly use ads on television and other media. All the ads tend to make the same promise about saving some big amount after switching to them. How can each company make almost identical claims? It’s all in the numbers.
All companies have a certain “appetite” for the type of customer that makes them money. A good example of this type of driver might be between the ages of 30 and 50, has never had a claim, and drives less than 7,500 miles a year. Any new insured that hits that “sweet spot” will probably get cheap prices and is almost guaranteed to save when they switch companies.
Potential customers who do not meet the requirements will probably have to pay a higher rate which translates to the customer not buying. The ad wording is “customers who switch” but not “all drivers who get quotes” save the amount stated. That’s the way insurance companies can make the claims of big savings. Each company has different criteria, so it is so important to compare as many as you can. It’s just not possible to know the company that will have the lowest rate quotes.
What impacts Pea Ridge auto insurance rates?
Lots of things are taken into consideration when premium rates are determined. Some factors are common sense like a motor vehicle report, but other factors are not as apparent such as whether you are married or your vehicle rating.
- Your liability coverage limits – Your policy’s liability coverage is the protection in the event that you are ruled to be at fault for causing damage or personal injury in an accident. It will provide legal defense coverage starting from day one. This coverage is very inexpensive when compared with rates for comp and collision, so buy as much as you can afford.
- Stressful job may mean higher prices – Did you know your auto insurance rates can be affected by your occupation? Jobs like military generals, executives and miners generally pay higher rates than the rest of us attributed to job stress and lots of time spent at work. On the other hand, occupations like professors, engineers and performers get better rates.
- Allowing your coverage to lapse raises premiums – Driving without insurance coverage in place can get you a ticket and you will pay a penalty because you let your insurance lapse for non-payment. Not only will rates go up, failure to provide proof of insurance can result in fines and jail time. You will then be forced to provide proof of insurance in the form of an SR-22 filing with the Arkansas DMV.
- Small coverages can add up – Policies have extra coverages that you can buy on your policy. Add-on coverages like rental car coverage, high-cost glass coverage, and additional equipment coverage may be costing you every month. These may sound like a good investment when deciding what coverages you need, but if you have no use for them get rid of them and save.
- Multiple policies with one company – Some insurance companies afford discounts to people who consolidate policies with them in the form of a multi-policy discount. If you currently are using one company, it’s still a good idea to check prices from other companies to help ensure you have the lowest rates.
- Premiums for men may be higher – Over the last 30 years, statistics show females are less aggressive when driving. Now that doesn’t mean women are BETTER drivers than men. Males and females are in auto accidents at about the same rate, but males tend to have more serious accidents. Not only that, but men also get more serious tickets like DWI (DUI) or reckless driving.
Do you qualify for discounts?
Companies do not list their entire list of discounts in an easy-to-find place, so below is a list some of the more common as well as the least known auto insurance savings. If you check and find you aren’t receiving every discount you qualify for, it’s possible you qualify for a lower rate.
- Discount for New Cars – Insuring a new car may earn a small discount because new model year vehicles keep occupants safer.
- Pea Ridge Homeowners Discount – Being a homeowner may earn you a small savings because owning a home requires a higher level of personal finance.
- Safe Drivers – Drivers without accidents can save as much as half off their rates compared to accident prone drivers.
- Fewer Miles Equal More Savings – Maintaining low annual mileage could qualify for slightly better rates than normal.
- Passive Restraints and Air Bags – Vehicles with factory air bags could see savings of 20 to 30 percent.
- First Accident Forgiveness – This one isn’t a discount, but a few companies such as GEICO and Liberty Mutual will let one accident slide without raising rates so long as you are claim-free before the accident.
- Senior Citizen Discount – Seniors can get a discount up to 10%.
- Multiple Vehicles – Drivers who insure multiple cars on one policy may reduce the rate for each vehicle.
- Onboard Data Collection – Pea Ridge drivers who agree to allow driving data submission to look at vehicle usage by using a telematics device in their vehicle such as In-Drive from State Farm or Allstate’s Drivewise system may see discounts if they exhibit good driving behavior.
- Anti-lock Brake System – Cars with ABS braking systems or traction control are safer to drive and qualify for as much as a 10% discount.
Discounts reduce rates, but you should keep in mind that most of the big mark downs will not be given to your bottom line cost. Most only apply to specific coverage prices like medical payments or collision. Even though it may seem like adding up those discounts means a free policy, auto insurance companies aren’t that generous.
Popular auto insurance companies and some of the discounts are detailed below.
- State Farm has discounts for driver’s education, passive restraint, anti-theft, Drive Safe & Save, accident-free, good driver, and Steer Clear safe driver discount.
- GEICO has savings for air bags, military active duty, defensive driver, multi-policy, and good student.
- SAFECO offers discounts including bundle discounts, anti-theft, drive less, accident prevention training, anti-lock brakes, and homeowner.
- Farmers Insurance offers discounts for bundle discounts, pay in full, homeowner, good student, alternative fuel, and early shopping.
- AAA discounts include pay-in-full, multi-car, good student, multi-policy, and anti-theft.
- USAA may have discounts that include vehicle storage, multi-vehicle, military installation, new vehicle, good student, annual mileage, and driver training.
Before buying, ask each company or agent how you can save money. Savings may not apply to policies in Pea Ridge. To find providers that provide some of the discounts listed above in Pea Ridge, click here to view.
Affordable auto insurance is out there
We just showed you quite a bit of information on how to compare auto insurance premium rates online. The key thing to remember is the more rate comparisons you have, the more likely it is that you will get a better rate. You may even find the lowest priced auto insurance comes from a small local company. These companies may cover specific market segments cheaper than the large multi-state companies such as Allstate or State Farm.
As you shop your coverage around, it’s very important that you do not sacrifice coverage to reduce premiums. There are a lot of situations where someone dropped full coverage and found out when filing a claim that saving that couple of dollars actually costed them tens of thousands. The aim is to buy enough coverage at the best possible price and still be able to protect your assets.
Even more information is available at the Arkansas Insurance Department website. Arkansas drivers can read industry bulletins, download brochures, find out which companies have the most complaints, and file complaints about an insurance agent or broker.