Having to pay for overpriced auto insurance can take a big chunk out of your checking account and make it impossible to make ends meet. Doing a price comparison is free and is an excellent way to cut your insurance bill. Many car insurance companies vie to insure your vehicles, so it can be very hard to choose a company and get the definite best rates possible.
Take discounts and save
Companies that sell car insurance don’t always publicize all available discounts very well, so the following is a list of some of the more common and the more hidden savings tricks you should be using. If you don’t get every credit available, you are throwing money away.
- Sign Early and Save – Some companies give discounts for buying a policy before your current expiration date. It can save you around 10%.
- Lower Rates for Military – Being on active duty in the military can result in better rates.
- Theft Prevention System – Cars that have factory anti-theft systems are stolen less frequently and earn discounts up to 10%.
- Homeowners Pay Less – Being a homeowner can help you save on auto insurance due to the fact that maintaining a home requires personal responsibility.
- College Student – Children living away from home attending college and do not have access to a covered vehicle can be insured at a reduced rate.
- Good Student Discount – Getting good grades can save 20 to 25%. This discount can apply up to age 25.
- Anti-lock Brakes – Anti-lock brake equipped vehicles are safer to drive and qualify for as much as a 10% discount.
- No Claims – Claim-free drivers can save substantially when compared to accident-prone drivers.
- Low Mileage Discounts – Fewer annual miles can earn a substantially lower rate.
- Pay Upfront and Save – If you pay your bill all at once instead of paying each month you may reduce your total bill.
Consumers should know that most of the big mark downs will not be given to your bottom line cost. A few only apply to the cost of specific coverages such as collision or personal injury protection. Even though it may seem like you could get a free auto insurance policy, companies don’t profit that way.
To see a list of insurance companies offering auto insurance discounts in Westminster, click here.
Compare the Market for Auto Insurance in Westminster, CO
Comparing auto insurance rates can be a lot of work if you don’t understand the most efficient way. You could spend your day discussing policy coverages with local insurance agents in Westminster, or you can utilize the web for quick rates.
Many insurance companies are enrolled in a marketplace where prospective buyers submit their information once, and at least one company returns a rated price based on that information. This saves time by eliminating quotation requests to every company. To find out how much you’re overpaying now click here (opens in new window).
The only drawback to pricing coverage this way is you don’t know exactly the providers you want pricing from. So if you prefer to choose specific insurance companies to compare rates, we put together a list of the cheapest auto insurance companies in Colorado. Click to view list.
It’s up to you how you get prices quotes, just compare apples-to-apples deductibles and coverage limits with each company. If you have mixed coverages it will be next to impossible to make an equal comparison in Westminster.
Good Decisions Result in Lower Rates
An important part of buying insurance is that you know the different types of things that help determine the price you pay for auto insurance. Having a good understanding of what impacts premium levels allows you to make educated decisions that could result in lower auto insurance prices.
- Traffic violations increase rates – A bad driving record has a big impact on rates. Good drivers tend to pay less for car insurance compared to drivers with tickets. Only having one ticket can increase rates by twenty percent. If you have flagrant violations such as DWI, reckless driving or hit and run convictions may find they need to file a SR-22 with their state motor vehicle department in order to keep their license.
- Small claims can cost you – If you frequently file small claims, you can expect higher rates. Car insurance companies in Colorado award cheaper rates to people who file claims infrequently. Insurance coverage is meant to be used in the event of the bigger claims that can’t be paid out-of-pocket.
- One company can mean more discounts – Most companies give discounts to people who carry more than one policy in the form of a multi-policy discount. Even with this discount, you may still want to compare other company rates to verify if the discount is saving money. You may still be able to find better rates by splitting coverages up.
- Your auto insurance rates can be influenced by your job – Occupations like real estate brokers, architects and accountants tend to pay higher rates than average due to high stress and long work days. On the flip side, occupations such as farmers, athletes and the unemployed have the lowest average rates.
- Type of vehicle determines base rates – The performance of the vehicle you are buying insurance for makes a huge difference in determining your rates. The most favorable rates tend to be for lower performance four cylinder passenger cars, but the cost you end up paying is determined by many additional factors.
- More people means more accidents – Choosing to live in small towns and rural areas can save you money when talking about auto insurance. Drivers in populated areas have to deal with traffic congestion and much longer commute distances. Fewer people means a lower chance of having an accident.
- No coverage gaps is important – Letting your insurance expire is a fast way to increase your auto insurance rates. And not only will your rates increase, getting caught without coverage might get you a revoked license or a big fine.Then you may be required to file a SR-22 with the Colorado department of motor vehicles.
- Drive less and save money – The more miles you rack up on your car each year the more you’ll pay to insure your vehicle. Most insurance companies apply a rate based on how the vehicle is used. Cars and trucks left parked in the garage get more affordable rates than vehicles that are driven to work every day. Make sure your auto insurance policy shows how each vehicle is driven.
Which policy gives me the best coverage?
When it comes to choosing the best auto insurance coverage, there really is not a one size fits all plan. Everyone’s situation is a little different and your policy should reflect that. For instance, these questions could help you determine if your situation could use an agent’s help.
- What is the difference between comprehensive and collision coverage?
- Am I covered when driving a rental car?
- Am I covered when driving someone else’s vehicle?
- Is my vehicle covered by my employer’s policy when using it for work?
- Why am I required to buy high-risk coverage?
- Are all vehicle passengers covered by medical payments coverage?
- Do I need special endorsements for business use of my vehicle?
If you can’t answer these questions, you may need to chat with an agent. If you don’t have a local agent, fill out this quick form or click here for a list of auto insurance companies in your area. It only takes a few minutes and you can get the answers you need.
How can State Farm, Allstate and GEICO save drivers who switch?
Colorado drivers get pounded daily by advertisements for the lowest price auto insurance from companies such as State Farm, Allstate and GEICO. They all have a common claim that you’ll save big if you change your policy.
How does each company say the same thing?
Different companies can use profiling for the type of customer they prefer to insure. For instance, a driver they prefer could be over the age of 40, has no tickets, and has excellent credit. Any new insured who meets those qualifications will get very good rates and as a result will probably save when switching.
Potential customers who don’t meet the requirements must pay higher rates and ends up with the driver buying from a lower-cost company. Company advertisements say “drivers who switch” but not “drivers who get quotes” save money. This is how companies can truthfully make the claims of big savings. This illustrates why you absolutely need to get quotes from several different companies. Because you never know which company will provide you with the cheapest rates.
Shop smart and save
Budget-conscious auto insurance can be found on the web as well as from independent agents in Westminster, and you need to comparison shop both to have the best chance of lowering rates. Some auto insurance companies don’t offer the ability to get a quote online and most of the time these regional insurance providers sell through independent agents.
You just learned quite a bit of information on how to lower your auto insurance rates. It’s most important to understand that the more providers you compare, the better chance you’ll have of finding lower rates. You may even find the best price on auto insurance is with the smaller companies. Regional companies may cover specific market segments cheaper than the large multi-state companies such as Allstate or State Farm.
As you prepare to switch companies, it’s not a good idea to sacrifice coverage to reduce premiums. There are too many instances where someone dropped liability coverage limits only to regret at claim time that a couple dollars of savings turned into a financial nightmare. Your focus should be to get the best coverage possible at the best price while not skimping on critical coverages.
Additional detailed information is available at the Colorado DORA Division of Insurance website. Colorado drivers can read state legal mandates and laws, file complaints about an insurance agent or broker, and find out which companies have the most complaints.