Feel like you’re a prisoner to an overpriced car insurance policy? Believe me when I say there are many consumers feeling the pinch from expensive car insurance. Many auto insurance companies compete to insure your vehicles, and because of this it can be hard to compare insurers to find the lowest price
Car insurance is not cheap, but there are discounts available that you may not even be aware of. Larger premium reductions will be automatically applied at the time of quoting, but some may not be applied and must be requested specifically before you get the savings. If they aren’t giving you every credit you qualify for, you are paying more than you should be.
Consumers should know that most credits do not apply to the overall cost of the policy. Most cut the cost of specific coverages such as physical damage coverage or medical payments. So despite the fact that it appears all those discounts means the company will pay you, companies wouldn’t make money that way. Any amount of discount will cut the cost of coverage.
For a list of companies who offer car insurance discounts, click here to view.
An important part of buying insurance is that you know the rating factors that play a part in calculating the rates you pay for auto insurance. Having a good understanding of what impacts premium levels allows you to make educated decisions that will entitle you to lower auto insurance prices.
Shown below are a partial list of the pieces companies use to determine prices.
When choosing the best insurance coverage for your personal vehicles, there isn’t really a one size fits all plan. Coverage needs to be tailored to your specific needs so your insurance should reflect that For example, these questions can aid in determining whether or not you would benefit from an agent’s advice.
If you can’t answer these questions but you think they might apply to your situation, then you may want to think about talking to an agent. To find an agent in your area, fill out this quick form or click here for a list of insurance companies in your area. It’s fast, free and may give you better protection.
Consumers get pounded daily by advertisements that promise big savings from companies such as GEICO, State Farm and Progressive. They all seem to say the same thing about savings if you switch your policy.
How can each company make the same claim?
All companies can use profiling for the driver that is profitable for them. For example, a driver they prefer might be profiled as between the ages of 30 and 50, is a homeowner, and has a short commute. A propective insured who matches those parameters will get the preferred rates and as a result will probably cut their rates substantially.
Potential insureds who do not match the requirements will be quoted a more expensive rate which leads to the customer not buying. The ads state “people who switch” but not “drivers who get quotes” save money. That’s why companies can truthfully make those claims.
This emphasizes why you should get as many quotes as possible. It’s just too difficult to predict which company will fit your personal profile best.
Knowing the specifics of your auto insurance policy aids in choosing appropriate coverage for your vehicles. The terms used in a policy can be difficult to understand and reading a policy is terribly boring. These are typical coverages found on the average auto insurance policy.
Uninsured or underinsured coverage – This provides protection from other drivers when they either have no liability insurance or not enough. It can pay for medical payments for you and your occupants and also any damage incurred to your Chevy Lumina Minivan.
Because many people carry very low liability coverage limits, their liability coverage can quickly be exhausted. So UM/UIM coverage is a good idea. Frequently these limits do not exceed the liability coverage limits.
Comprehensive protection – Comprehensive insurance will pay to fix damage from a wide range of events other than collision. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage pays for things like damage from getting keyed, damage from a tornado or hurricane, rock chips in glass and vandalism. The maximum payout your auto insurance company will pay is the market value of your vehicle, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.
Medical expense coverage – Medical payments and Personal Injury Protection insurance provide coverage for expenses for things like dental work, ambulance fees, rehabilitation expenses and pain medications. The coverages can be used in conjunction with a health insurance policy or if you lack health insurance entirely. Medical payments and PIP cover not only the driver but also the vehicle occupants as well as any family member struck as a pedestrian. PIP is not an option in every state but can be used in place of medical payments coverage
Auto liability – This can cover damage that occurs to a person or their property. It protects you from legal claims by others, and doesn’t cover your own vehicle damage or injuries.
Liability coverage has three limits: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You might see liability limits of 25/50/25 which means $25,000 in coverage for each person’s injuries, a per accident bodily injury limit of $50,000, and a total limit of $25,000 for damage to vehicles and property. Alternatively, you may have a combined limit which provides one coverage limit without having the split limit caps.
Liability coverage protects against things like emergency aid, medical expenses, legal defense fees and attorney fees. The amount of liability coverage you purchase is a personal decision, but buy as high a limit as you can afford.
Collision – This coverage pays for damage to your Lumina Minivan resulting from colliding with another car or object. You have to pay a deductible and then insurance will cover the remainder.
Collision coverage pays for things like backing into a parked car, colliding with another moving vehicle, hitting a mailbox and damaging your car on a curb. Collision is rather expensive coverage, so you might think about dropping it from vehicles that are older. Another option is to raise the deductible to get cheaper collision coverage.
Cost effective 1990 Chevy Lumina Minivan insurance is attainable on the web and also from your neighborhood agents, so you should compare both in order to have the best price selection to choose from. A few companies may not provide the ability to get a quote online and these smaller companies work with independent agents.
You just read many ways to lower your insurance rates. It’s most important to understand that the more times you quote, the more likely it is that you will get a better rate. You may be surprised to find that the most savings is with the least-expected company. Some small companies may cover specific market segments cheaper than their larger competitors like State Farm, GEICO and Nationwide.
Additional auto insurance information can be found on the following sites: