No one cherishes buying auto insurance, especially knowing their premiums are too high.
Since consumers have many insurance companies to choose from, it can be hard to locate the right company.
Make smart decisions and save
It’s important that you understand the rating factors that play a part in calculating your auto insurance rates. When you know what positively or negatively impacts premium levels allows you to make educated decisions that may reward you with big savings.
- More than one policy can earn a discount – Most insurance companies will award you with lower prices to policyholders who buy several policies from them such as combining an auto and homeowners policy. Discounts can be 10 percent or more. Even with this discount, you may still want to shop around to confirm you are receiving the best rates possible.
- Extra add-on coverages are wasting money – There are quite a few additional coverages that can waste your money on your policy. Things like rental car reimbursement, accident forgiveness and membership fees are some examples. These coverages may sound good at first, but your needs may have changed so remove them from your policy.
- Lower rates come with age – Older drivers are more responsible, file fewer claims and get fewer tickets. Teen drivers have a tendency to get distracted easily behind the wheel and because of this, their auto insurance rates are much higher.
- Rates may be higher depending on your occupation – Careers like real estate brokers, architects and dentists tend to pay the highest average rates due to stressful work requirements and lots of time spent at work. Other occupations such as actors, historians and retirees have the lowest average rates.
- What type of vehicle do you drive? – The performance level of the vehicle you drive makes a significant difference in determining your rates. The cheapest insurance rates are for low performance passenger models, but the final cost of insurance is determined by many other factors.
- Big city or small town – Being located in a rural area can save you money when it comes to auto insurance. Urban drivers have to deal with traffic congestion and much longer commute distances. Fewer drivers means fewer accidents and also fewer theft and vandalism claims.
- Keep rates low by being claim-free – Car insurance companies in Tennessee give discounts to drivers who do not file claims often. If you are a frequent claim filer, you can look forward to either policy cancellation or increased premiums. Your insurance policy is intended to be relied upon for larger claims.
- Allowing your policy to lapse raises rates – Having an insurance coverage lapse is a quick way to increase your auto insurance rates. Not only will you pay more, getting caught without coverage will get you a steep fine or even jail time.Then you may be required to file a SR-22 with the Tennessee department of motor vehicles.
More discounts equal less premium
Auto insurance companies don’t list all their discounts very well, so we took the time to find both the well known and the more hidden discounts you could be receiving.
- Save with a New Car – Adding a new car to your policy can save up to 30% since new cars are generally safer.
- Resident Student – Children who live away from home and do not have access to a covered vehicle may be able to be covered for less.
- 55 and Retired – If you’re over the age of 55, you may qualify for a small decrease in premiums.
- Safe Driver Discount – Drivers who don’t get into accidents can get discounts for up to 45% lower rates than their less cautious counterparts.
- Pay Now and Pay Less – By paying your policy upfront instead of making monthly payments you can actually save on your bill.
- Club Memberships – Participating in certain professional organizations could qualify you for a break when buying auto insurance.
- Homeowners Discount – Being a homeowner may earn you a small savings because maintaining a house shows financial diligence.
- Anti-lock Brake Discount – Anti-lock brake equipped vehicles can avoid accidents and will save you 10% or more.
- Good Student – This discount can save 20 to 25%. This discount can apply until age 25.
A little note about advertised discounts, most of the big mark downs will not be given to the entire cost. Most only reduce individual premiums such as physical damage coverage or medical payments. So even though it sounds like you can get free auto insurance, companies don’t profit that way.
To see a list of insurance companies with the best auto insurance discounts in Springfield, click here to view.
To learn even more about auto insurance
Additional detailed information can be read at the Tennessee Department of Commerce and Insurance website. Consumers can learn about insurance regulations, download brochures, find disaster information, and view agent and company licensing information.
More related Springfield auto insurance information:
- Follow These Ultimate Techniques for Saving Money on Springfield, OH Auto Insurance
- Easy Methods to Cut Costs on Springfield Auto Insurance
- 10 Ways You Can Buy Car Insurance for Less in Springfield, IL
Keep this in mind
When shopping online for auto insurance, make sure you don’t reduce coverage to reduce premium. In many instances, an insured dropped comprehensive coverage or liability limits only to discover later that their decision to reduce coverage ended up costing them more. Your focus should be to purchase a proper amount of coverage for the lowest price, not the least amount of coverage.
Cheaper auto insurance can be sourced both online in addition to many Springfield insurance agents, so compare prices from both to have the best selection. There are still a few companies who do not provide you the ability to get quotes online and these small, regional companies work with independent agents.