Tired of scraping the payment together to pay your car insurance bill each month? You are in the same boat as many other drivers. Multiple car insurance companies compete for your business, and because of this it can be hard to compare car insurance companies to find the lowest cost out there.
It’s important that you understand the different types of things that go into determining insurance coverage rates. Having a good understanding of what controls the rates you pay enables informed choices that can help you get lower insurance coverage prices.
Listed below are a few of the “ingredients” insurance coverage companies consider when setting your rates.
Car insurance is not cheap, but discounts can save money and there are some available that you may not know about. Larger premium reductions will be automatically applied at the time of purchase, but some may not be applied and must be asked about prior to receiving the credit. If they aren’t giving you every credit you deserve, you are throwing money away.
Consumers should know that most discounts do not apply to all coverage premiums. Most only reduce the cost of specific coverages such as liability, collision or medical payments. Just because it seems like you can get free auto insurance, companies don’t profit that way. But any discount will help reduce the amount you have to pay.
To see a list of companies with discount insurance coverage rates, click here to view.
When it comes to buying coverage for your vehicles, there isn’t really a “perfect” insurance plan. Everyone’s needs are different and a cookie cutter policy won’t apply. These are some specific questions could help you determine if you would benefit from professional advice.
If you can’t answer these questions then you might want to talk to an insurance agent. To find lower rates from a local agent, complete this form or go to this page to view a list of companies. It’s fast, doesn’t cost anything and can provide invaluable advice.
Knowing the specifics of a insurance policy aids in choosing which coverages you need for your vehicles. The terms used in a policy can be confusing and coverage can change by endorsement. Shown next are typical coverages found on most insurance policies.
Medical payments and PIP coverage
Medical payments and Personal Injury Protection insurance reimburse you for bills for things like dental work, rehabilitation expenses and nursing services. The coverages can be used to fill the gap from your health insurance policy or if there is no health insurance coverage. Medical payments and PIP cover both the driver and occupants as well as any family member struck as a pedestrian. Personal injury protection coverage is only offered in select states but can be used in place of medical payments coverage
Liability
This coverage protects you from damage that occurs to a person or their property in an accident. It protects YOU against other people’s claims, and doesn’t cover damage to your own property or vehicle.
It consists of three limits, bodily injury per person, bodily injury per accident and property damage. Your policy might show values of 25/50/25 which stand for $25,000 in coverage for each person’s injuries, $50,000 for the entire accident, and $25,000 of coverage for damaged propery. Some companies may use one limit called combined single limit (CSL) which provides one coverage limit and claims can be made without the split limit restrictions.
Liability insurance covers things like funeral expenses, medical services and structural damage. How much liability coverage do you need? That is a decision to put some thought into, but you should buy as high a limit as you can afford.
Comprehensive auto coverage
Comprehensive insurance pays to fix your vehicle from damage caused by mother nature, theft, vandalism and other events. You need to pay your deductible first and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage protects against things like fire damage, hitting a deer and hail damage. The highest amount you can receive from a comprehensive claim is the ACV or actual cash value, so if it’s not worth much more than your deductible it’s not worth carrying full coverage.
Collision insurance
This pays to fix your vehicle from damage resulting from colliding with a stationary object or other vehicle. A deductible applies then the remaining damage will be paid by your insurance company.
Collision coverage pays for claims like crashing into a ditch, rolling your car, crashing into a building and damaging your car on a curb. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from older vehicles. Another option is to increase the deductible in order to get cheaper collision rates.
UM/UIM (Uninsured/Underinsured Motorist) coverage
This coverage protects you and your vehicle’s occupants from other drivers when they do not carry enough liability coverage. Covered claims include medical payments for you and your occupants as well as damage to your Ford Aspire.
Due to the fact that many drivers only carry the minimum required liability limits, their limits can quickly be used up. So UM/UIM coverage is a good idea. Normally the UM/UIM limits are set the same as your liablity limits.
Cheap 1994 Ford Aspire insurance is available from both online companies in addition to many insurance agents, so you should be comparing quotes from both to have the best selection. Some companies do not provide you the ability to get quotes online and usually these small, regional companies provide coverage only through local independent agents.
You just learned many tips how you can save on insurance. It’s most important to understand that the more you quote, the better your chances of lowering your rates. You may be surprised to find that the most savings is with some of the lesser-known companies. Regional companies may cover specific market segments cheaper compared to the large companies like State Farm or Progressive.
For more information, feel free to browse the resources below: