Have you fallen victim to an underperforming, overpriced auto insurance policy? Believe me when I say you are not the only one feeling buyer’s remorse.
Numerous insurance companies battle for your insurance dollar, and because of this it can be hard to compare insurers and get the definite best rates possible.
It’s a great practice to get comparison quotes occasionally because prices change frequently. Even if you got the best rates two years ago other companies may now be cheaper. Forget all the misinformation about auto insurance because I’m going to let you in on the secrets to the best methods to save money, get proper deductibles and limits, all at the lowest rate.
If you currently have car insurance, you will be able to lower your premiums substantially using these techniques. Choosing the best insurance company for you in Raytown is not rocket science. But Missouri drivers need to learn the way insurance companies price insurance differently and take advantage of how the system works.
Lower the Price of Insurance with These Tips
Consumers need to have an understanding of the rating factors that come into play when calculating your auto insurance rates. Understanding what determines base rates enables informed choices that could result in big savings.
- Discounts for multiple policies – The majority of auto insurance companies will award you with lower prices to policyholders who carry more than one policy. It’s known as a multi-policy discount. This can amount to ten or even up to twenty percent in some cases. Even if you’re getting this discount it’s still a good idea to compare rates to verify if the discount is saving money. Consumers may find a better deal by insuring with multiple companies.
- Do you need those extra coverages? – There are many add-on coverages you can purchase when buying auto insurance. Coverages for rental car reimbursement, better glass coverage and term life insurance are examples of these. These may sound like a good investment when you first buy your policy, but if they’re wasting money eliminate them to save money.
- Never let your coverage lapse – Allowing your coverage to lapse is a fast way to bump up your auto insurance costs. Not only will you pay more, but not being able to provide proof of insurance might get you a steep fine or even jail time.You may need to file a SR-22 with the Missouri motor vehicle department.
- Poor driving leads to higher costs – Even one moving violation can boost insurance rates twenty percent or more. Careful drivers have lower premiums compared to drivers with tickets. If you have flagrant violations like reckless driving, hit and run or driving under the influence may find they need to file a proof of financial responsibility form (SR-22) with their state DMV in order to keep their license.
- Are you male or female? – Statistics demonstrate that men are more aggressive behind the wheel. However, this does not mean men are worse drivers. Women and men tend to get into accidents in similar numbers, but the male of the species have costlier accidents. Men also tend to receive more costly citations like DUI and reckless driving. Youthful male drivers are the most expensive to insure and therefore have the most expensive auto insurance rates.
- Big city or small town – Living in less populated areas has it’s advantages when it comes to auto insurance. Lower population means fewer accidents as well as less vandalism and auto theft. Urban drivers have to deal with congested traffic and longer commute times. More time on the road can result in more accidents.
Cut your premium with discounts
Companies don’t list all available discounts very well, so we break down both the well known and the more hidden ways to save on auto insurance.
- College Student – Children living away from home attending college and don’t have a car may qualify for this discount.
- Paperwork-free – A handful of insurance companies may give you up to $50 simply for signing digitally online.
- Multi-policy Discount – When you have multiple policies with the same insurance company you will save at least 10% off all policies.
- New Vehicle Savings – Buying coverage on a new vehicle can cost up to 25% less since new cars are generally safer.
- Multi-car Discount – Buying coverage for more than one vehicle on one policy can get a discount on all vehicles.
- Payment Method – If you pay your entire premium ahead of time instead of monthly or quarterly installments you can actually save on your bill.
- No Claims – Drivers who don’t have accidents pay much less compared to bad drivers.
As a disclaimer on discounts, some credits don’t apply to your bottom line cost. Some only reduce the price of certain insurance coverages like liability, collision or medical payments. Just because it seems like you can get free auto insurance, companies don’t profit that way.
To see a list of insurance companies offering auto insurance discounts in Raytown, follow this link.
Buyer beware of auto insurance advertising tricks
State Farm, Allstate and Geico consistently run television and radio advertisements. All the companies have a common claim about savings if you change to them. How can each company claim to save you money? It’s all in the numbers.
Different companies are able to cherry pick for the driver that earns them a profit. For example, a desirable insured could possibly be between 25 and 40, has no prior claims, and chooses high deductibles. A customer that hits that “sweet spot” is entitled to the best price and is almost guaranteed to save quite a bit of money when switching.
Consumers who don’t qualify for the “perfect” profile must pay higher rates which leads to business going elsewhere. The ad wording is “drivers who switch” but not “drivers who get quotes” save that much. That is how insurance companies can confidently make the claims of big savings. This illustrates why drivers must compare as many rates as you can. It’s impossible to know which insurance companies will provide you with the cheapest rates.
What is the best insurance coverage?
When buying coverage for your vehicles, there really is no one size fits all plan. Everyone’s situation is a little different so this has to be addressed. These are some specific questions may help you determine whether or not you would benefit from professional advice.
- Is my vehicle covered for smoke damage?
- Is my babysitter covered when using my vehicle?
- Can I afford to buy a different vehicle if my vehicle is totaled?
- When would I need additional glass coverage?
- Are my friends covered when driving my vehicle?
- What vehicles should carry emergency assistance coverage?
If it’s difficult to answer those questions but one or more may apply to you, you may need to chat with an agent. To find lower rates from a local agent, fill out this quick form or click here for a list of auto insurance companies in your area.
Some additional reading
More tips and info about auto insurance is available at the Missouri Department of Insurance website. Consumers can find out which companies have the most complaints, read state legal mandates and laws, and view agent and company licensing information.
Cheaper insurance is a realistic goal
In this article, we presented some good ideas how you can shop for auto insurance online. It’s most important to understand that the more times you quote, the higher the chance of saving money. You may even discover the best prices are with the least-expected company. Some small companies can often provide lower rates in certain areas compared to the large companies like State Farm or Progressive.
Budget-conscious auto insurance is definitely available online in addition to many Raytown insurance agents, and you should compare price quotes from both in order to have the best chance of saving money. A few companies do not provide online price quotes and usually these small, regional companies provide coverage only through local independent agents.