Have you fallen victim to an underperforming, overpriced car insurance policy? Believe me when I say you are not the only one feeling buyer’s remorse.
Many insurers vie to insure your vehicles, so it can be very hard to choose a company to discover the definitive best rates possible.
An important part of buying insurance is that you know the factors that come into play when calculating insurance rates. Understanding what influences your rates helps enable you to make changes that will entitle you to big savings.
The list below includes a partial list of the pieces that factor into prices.
Companies offering auto insurance don’t always list all their discounts in a way that’s easy to find, so here is a list some of the best known and the more hidden discounts you could be receiving.
Consumers should know that most discounts do not apply to your bottom line cost. Most only apply to the price of certain insurance coverages like comp or med pay. So when the math indicates adding up those discounts means a free policy, auto insurance companies aren’t that generous.
To see a list of insurers who offer auto insurance discounts, click here.
When choosing the right insurance coverage for your personal vehicles, there really is no single plan that fits everyone. Coverage needs to be tailored to your specific needs and a cookie cutter policy won’t apply. For example, these questions may help you determine whether you might need an agent’s assistance.
If you can’t answer these questions then you might want to talk to a licensed insurance agent. If you want to speak to an agent in your area, take a second and complete this form or you can go here for a list of companies in your area.
Understanding the coverages of a insurance policy helps when choosing which coverages you need and the correct deductibles and limits. The coverage terms in a policy can be ambiguous and nobody wants to actually read their policy. Listed below are the normal coverages found on the average insurance policy.
Medical expense insurance – Coverage for medical payments and/or PIP pay for short-term medical expenses such as chiropractic care, nursing services, hospital visits and pain medications. They are used in conjunction with a health insurance policy or if there is no health insurance coverage. It covers not only the driver but also the vehicle occupants in addition to getting struck while a pedestrian. Personal Injury Protection is not available in all states but it provides additional coverages not offered by medical payments coverage
Liability insurance – Liability insurance provides protection from damages or injuries you inflict on a person or their property by causing an accident. It protects you against claims from other people, and does not provide coverage for your own vehicle damage or injuries.
Split limit liability has three limits of coverage: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You might see limits of 100/300/100 that translate to a $100,000 limit per person for injuries, a limit of $300,000 in injury protection per accident, and property damage coverage for $100,000.
Liability can pay for things such as repair bills for other people’s vehicles, structural damage, medical expenses, bail bonds and attorney fees. The amount of liability coverage you purchase is a personal decision, but buy higher limits if possible.
Protection from uninsured/underinsured drivers – Your UM/UIM coverage provides protection when other motorists are uninsured or don’t have enough coverage. Covered losses include hospital bills for your injuries and damage to your 2004 Hyundai Tiburon.
Due to the fact that many drivers carry very low liability coverage limits, their limits can quickly be used up. This is the reason having UM/UIM coverage is very important.
Collision coverage – This coverage covers damage to your Tiburon resulting from a collision with an object or car. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision insurance covers things such as scraping a guard rail, colliding with a tree and sideswiping another vehicle. This coverage can be expensive, so analyze the benefit of dropping coverage from vehicles that are older. You can also choose a higher deductible in order to get cheaper collision rates.
Comprehensive (Other than Collision) – Comprehensive insurance pays to fix your vehicle from damage that is not covered by collision coverage. You need to pay your deductible first and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage pays for claims such as theft, fire damage and damage from a tornado or hurricane. The most your insurance company will pay is the cash value of the vehicle, so if the vehicle is not worth much it’s not worth carrying full coverage.
As you prepare to switch companies, it’s very important that you do not skimp on critical coverages to save a buck or two. In many cases, an insured cut uninsured motorist or liability limits and learned later that saving that couple of dollars actually costed them tens of thousands. The ultimate goal is to buy the best coverage you can find at a price you can afford while still protecting your assets.
Cheaper 2004 Hyundai Tiburon insurance is possible online and with local insurance agents, and you should compare price quotes from both so you have a total pricing picture. Some insurance companies do not offer online price quotes and these small insurance companies work with independent agents.
We just covered a lot of techniques to shop for insurance online. The key concept to understand is the more you quote, the higher your chance of finding lower rates. You may even find the most savings is with a small mutual company. These companies may cover specific market segments cheaper than their larger competitors like State Farm or Progressive.
For more information, feel free to visit the resources below: