Overpriced auto insurance can sap your savings account and force you to prioritize other expenses. Comparing price quotes can help to cut your insurance bill.
Because you have many companies and agents to choose from, it can be hard to locate the cheapest insurance company.
It is always a good idea to take a look at other company’s rates as often as possible because prices are variable and change quite frequently. Just because you had the lowest rates on your last policy you can probably find a better rate quote now. Forget anything you know (or think you know) about auto insurance because we’re going to show you the fastest way to find better rates and still maintain coverage.
Get cheap auto insurance with these tips
Lots of things are taken into consideration when you get a price on insurance. Most are fairly basic like a motor vehicle report, although some other factors are not as apparent like your continuous coverage or how financially stable you are. It’s important that you understand the factors that come into play when calculating your premiums. If you understand what controls the rates you pay, this empowers consumers to make smart changes that will entitle you to lower rates.
- The type of car, truck or SUV makes a difference – The performance of the car you are insuring makes a substantial difference in your rates. The lowest premiums will normally be found when insuring economy passenger cars, but there are many factors that impact the final cost.
- Liability protection – Liability coverage is the protection when you are found to be at fault for personal injury or accident damage. Liability provides legal defense starting from day one. This coverage is relatively inexpensive compared to physical damage coverage, so buy as much as you can afford.
- Premiums are lower the older you get – Older, more experienced drivers are proven to be safer behind the wheel, statistically cause fewer accidents , and usually have better credit.Youthful drivers tend to be inattentive and easily distracted behind the wheel so they pay higher auto insurance rates.
- Careless drivers pay higher costs – Getting just one ticket can bump up the cost by twenty percent. Careful drivers pay lower auto insurance prices than their less careful counterparts. Drivers who have received multiple citations like hit and run, DWI or reckless driving convictions may be required to complete a SR-22 with their state motor vehicle department in order to drive a vehicle legally.
- Are females or males drivers cheaper? – Statistics show that men are more aggressive behind the wheel. It does not mean men are WORSE drivers than women. Males and females have accidents in similar numbers, but guys cause more damage. Men also tend to get cited for more serious violations like reckless driving and DUI.
Discounts for lower-cost auto insurance rates
Properly insuring your vehicles can get expensive, but you might be missing out on some discounts that many consumers don’t even know exist. Certain discounts will be applied when you complete an application, but less common discounts must be asked for prior to receiving the credit.
- Early Renewal Discounts – A few larger companies offer discounts for buying a new policy prior to your current policy expiring. It can save you around 10%.
- Discount for Low Mileage – Maintaining low annual mileage can earn slightly better premium rates than normal.
- Multi-Vehicle Discounts – Having more than one vehicle with the same company may reduce the rate for each vehicle.
- Discount for Life Insurance – Select companies reward you with a lower price if you buy life insurance from them.
- No Claims – Claim-free drivers can earn big discounts when compared with accident-prone drivers.
- Federal Employees – Active or retired federal employment could provide a small rate reduction with a few auto insurance companies.
- No Charge for an Accident – but a few companies such as Liberty Mutual and GEICO will allow you to have one accident without getting socked with a rate hike if you have no claims for a set time period.
- Theft Prevention Discount – Cars, trucks, and SUVs that have factory anti-theft systems help deter theft so companies will give you a small discount.
Discounts lower rates, but some of the credits will not apply the the whole policy. A few only apply to specific coverage prices like physical damage coverage or medical payments. Despite the appearance that you would end up receiving a 100% discount, you aren’t that lucky.
Some companies who might offer most of these discounts may include but are not limited to:
When quoting, ask every prospective company to apply every possible discount. Some of the earlier mentioned discounts might not be offered in Vadnais Heights.
Compare prices but work with a local Vadnais Heights insurance agency
Many drivers would prefer to visit with an insurance agent and that is a personal choice. Most agents will help you protect your assets and help in the event of a claim. The best thing about comparing auto insurance online is that you can find cheap rate quotes but still work with a licensed agent.
Upon completion of this short form, the quote information is sent to local insurance agents that give free quotes for your coverage. It simplifies rate comparisons since you won’t have to contact any agents because prices are sent to you directly. If you have a need to compare rates for a specific company, you can always navigate to their website and fill out their quote form.
Selecting a insurance company needs to be determined by more than just the quoted price. Any agent should be willing to answer these questions.
- Do they have 24-hour customer assistance?
- Does their agency support local causes in Vadnais Heights?
- Are they in the agency full-time?
- Do they assist clients in filing claims?
- Where are claims handled?
- Who are their largest clients?
- What insurance company do they write the most business with?
When researching a reliable insurance agency, there are a couple of types of insurance agents to choose from. Agents are either captive or independent. Either can sell auto insurance policies, but it’s important to know the difference between them since it can impact your selection of an agent.
Captive Auto Insurance Agencies
These agents have only one company to place business with such as Allstate, AAA, Farmers Insurance, and State Farm. Captive agents are unable to provide other company’s prices so you might not find the best rates. These agents are highly trained on the products they sell which can be an advantage.
Independent Agents (or Brokers)
These agents often have many company appointments and that gives them the ability to insure with many different companies and possibly get better coverage at lower prices. If you are not satisfied with one company, your agent can switch companies which is easy for the insured.
If you are comparing rate quotes, you will want to get quotes from independent agents to ensure the widest selection of prices.
The ad said I’d save $414 a year!
Minnesota consumers can’t get away from ads for the lowest price auto insurance from companies such as State Farm, GEICO and Progressive. All the ads have a common claim of big savings if you just switch your auto insurance policy to them.
Is it even possible that every company can make the same claim? This is how they do it.
Most companies have underwriting criteria for the type of customer that will most likely be profitable. One example of this type of risk profile could possibly be over the age of 45, has no prior claims, and insures a new vehicle. Any new insured that fits those parameters receives the best rates and most likely will save money with a new company.
Potential insureds who do not fit this stringent profile may be required to pay higher prices which translates to business going elsewhere. If you pay attention, the ads say “drivers that switch” not “all people who quote” can save as much as they claim. That is how insurance companies can make those claims. That is why you need to compare many company’s rates. Because you never know the company that will have the best prices.
Additional detailed information can be read at the Minnesota Department of Commerce website. Minnesota drivers can report car insurance fraud, read enforcement actions against agents and companies, and find disaster information.
In the end, you save
A few companies may not offer online quoting and most of the time these regional carriers only sell through local independent agencies. Cheaper auto insurance can be bought online and with local Vadnais Heights insurance agents, and you should compare price quotes from both in order to have the best price selection to choose from.
When getting , it’s very important that you do not buy lower coverage limits just to save a few bucks. There are many occasions where an insured cut collision coverage only to discover later that the small savings ended up costing them much more. The aim is to buy enough coverage at the best cost, but do not sacrifice coverage to save money.