Are you tired of robbing Peter to pay Paul each month for car insurance? You are in the same boat as many other drivers in Wisconsin. Online insurance companies like State Farm, Progressive and GEICO constantly bombard you with fancy advertisements and it is difficult to see through the cute green geckos and mayhem and take the time to shop coverage around.
Discounts are great for lower rates
Car insurance companies don’t always advertise every available discount very clearly, so we researched both well-publicized and the more hidden ways to save on car insurance. If you’re not getting every credit possible, you’re just leaving money on the table.
- Life Insurance – Some companies give a break if you buy life insurance from them.
- Student in College – Any of your kids who live away from home and don’t have a car can receive lower rates.
- Braking Control Discount – Cars that have steering control and anti-lock brakes are safer to drive and therefore earn up to a 10% discount.
- Defensive Driver – Completing a course in driver safety could possibly earn you a 5% discount if you qualify.
- Organization Discounts – Being a member of a qualifying organization could qualify you for a break on car insurance.
- Accident Waiver – A few companies will forgive one accident without raising rates if you are claim-free for a certain period of time.
- Homeowners Discount – Owning a house in Sun Prairie can help you save on car insurance because maintaining a house requires personal responsibility.
Drivers should understand that some credits don’t apply to all coverage premiums. Most only cut individual premiums such as comprehensive or collision. Even though it may seem like it’s possible to get free car insurance, you’re out of luck.
For a list of companies with the best car insurance discounts in Wisconsin, follow this link.
Why your price might be higher
Smart consumers have a good feel for the rating factors that go into determining your car insurance rates. Knowing what influences your rates allows you to make educated decisions that can help you get big savings.
- Discounts for multiple policies – Some car insurance companies provide better rates to policyholders who carry more than one policy, otherwise known as a multi-policy discount. Even though this discount sounds good, you may still want to shop around to make sure you are getting the best deal.
- Traffic violations increase rates – Whether or not you get tickets has a lot to do with how much you pay for insurance. Only having one speeding ticket may increase your cost by twenty percent. Drivers with clean records get better rates than bad drivers. Drivers with serious tickets such as hit and run, DWI or reckless driving convictions are required to file a SR-22 with their state DMV in order to continue driving.
- Rates may be higher depending on your occupation – Did you know your occupation can influence how much you pay for car insurance? Careers like doctors, architects and stock brokers tend to have the highest rates in part from job stress and long work hours. On the other hand, professions such as scientists, students and performers receive lower rates.
- Pay less if you’re married – Getting married helps lower the price on your car insurance policy. Having a spouse translates into being more responsible and statistics show married drivers get in fewer accidents.
- Lower rates with optional equipment – Purchasing a vehicle that has an advanced theft prevention system can save you a little every year. Theft prevention features such as LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system all aid in stopping car theft.
- How your age affects price – Older insureds are more cautious drivers, statistically cause fewer accidents and get fewer tickets. Teen drivers have a tendency to be careless and easily distracted when behind the wheel therefore car insurance rates are much higher.
Are car insurance companies telling the truth?
Wisconsin consumers can’t ignore all the ads for car insurance savings from the likes of State Farm, GEICO and Progressive. They all seem to have a common claim that you can save if you change your coverage to them.
How do they all make almost identical claims? It’s all in the numbers.
Insurance companies are able to cherry pick for the right customer that earns them a profit. An example of a driver they prefer might be profiled as a mature driver, has no driving citations, and drives newer vehicles. A driver who fits that profile gets the lowest rates and as a result will probably save when they switch companies.
Potential insureds who don’t qualify for these standards will be charged more money which leads to business going elsewhere. The ads say “customers that switch” not “everyone that quotes” save money. That’s why insurance companies can claim big savings. That is why it is so important to compare many company’s rates. You cannot predict which company will give you the biggest savings.
Additional consumer information websites
Even more information is available at the Wisconsin Office of the Commissioner of Insurance website. Consumers can discover disciplinary actions, learn about insurance regulations, get help finding coverage, and report car insurance fraud.
Keep this in mind
Low-cost car insurance is possible online and with local Sun Prairie insurance agents, so compare prices from both to have the best chance of lowering rates. Some insurance companies do not offer online price quotes and these regional insurance providers work with independent agents.
As you restructure your insurance plan, never reduce coverage to reduce premium. In many instances, an insured cut liability limits or collision coverage and discovered at claim time they didn’t purchase enough coverage. Your goal should be to purchase a proper amount of coverage at a price you can afford while still protecting your assets.