Did you fall for a flashy sales pitch and buy an overpriced insurance policy? Trust us, there are many consumers feeling the pinch from expensive insurance.
Drivers have so many auto insurance companies to buy insurance from, and even though it’s nice to have multiple companies, it makes it harder to compare rates and find the lowest cost insurance.
Smart consumers have a good feel for some of the elements that play a part in calculating car insurance rates. Understanding what impacts premium levels empowers consumers to make smart changes that may reward you with much lower annual insurance costs.
Shown below are some of the factors used by your company to calculate rates.
Properly insuring your vehicles can get expensive, but you may find discounts to help bring down the price. Some discounts apply automatically when you get a quote, but less common discounts must be manually applied before you get the savings.
As a disclaimer on discounts, many deductions do not apply to your bottom line cost. Some only apply to the cost of specific coverages such as comprehensive or collision. So despite the fact that it appears adding up those discounts means a free policy, you won’t be that lucky. Any amount of discount will reduce the amount you have to pay.
A partial list of companies who might offer some of the above discounts include:
Check with all companies you are considering how you can save money. Some discounts may not apply in your state.
When it comes to buying coverage for your personal vehicles, there really is not a perfect coverage plan. Every situation is different and a cookie cutter policy won’t apply. For example, these questions might help in determining if your situation might need an agent’s assistance.
If you’re not sure about those questions but you know they apply to you, then you may want to think about talking to an insurance agent. If you want to speak to an agent in your area, complete this form or go to this page to view a list of companies.
Having a good grasp of car insurance can be of help when determining the best coverages for your vehicles. Policy terminology can be difficult to understand and nobody wants to actually read their policy. Shown next are typical coverage types available from car insurance companies.
This protects you and your vehicle’s occupants when the “other guys” do not carry enough liability coverage. This coverage pays for hospital bills for your injuries as well as damage to your Volvo XC90.
Since a lot of drivers only carry the minimum required liability limits, their liability coverage can quickly be exhausted. This is the reason having UM/UIM coverage is a good idea. Frequently the UM/UIM limits are set the same as your liablity limits.
Comprehensive insurance covers damage that is not covered by collision coverage. You first must pay your deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things like damage from flooding, hail damage, falling objects and damage from a tornado or hurricane. The maximum payout your car insurance company will pay is the actual cash value, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.
Liability insurance will cover damage or injury you incur to people or other property that is your fault. It protects you against claims from other people, and does not provide coverage for damage sustained by your vehicle in an accident.
Coverage consists of three different limits, per person bodily injury, per accident bodily injury, and a property damage limit. You commonly see limits of 50/100/50 that translate to a $50,000 limit per person for injuries, a total of $100,000 of bodily injury coverage per accident, and property damage coverage for $50,000. Alternatively, you may have one number which is a combined single limit that pays claims from the same limit with no separate limits for injury or property damage.
Liability coverage pays for claims like medical services, pain and suffering and legal defense fees. The amount of liability coverage you purchase is up to you, but consider buying higher limits if possible.
Collision coverage pays for damage to your XC90 resulting from colliding with another car or object. You will need to pay your deductible then the remaining damage will be paid by your insurance company.
Collision coverage protects against things like colliding with a tree, hitting a parking meter and backing into a parked car. Collision is rather expensive coverage, so consider dropping it from older vehicles. Drivers also have the option to bump up the deductible to bring the cost down.
Med pay and PIP coverage kick in for immediate expenses for things like X-ray expenses, surgery, prosthetic devices and chiropractic care. They are used to cover expenses not covered by your health insurance program or if you do not have health coverage. Medical payments and PIP cover both the driver and occupants as well as if you are hit as a while walking down the street. PIP coverage is not universally available but it provides additional coverages not offered by medical payments coverage
Cheap 2009 Volvo XC90 insurance can be sourced online and with local insurance agents, so you should compare both to have the best rate selection. Some insurance companies do not offer you the ability to get quotes online and most of the time these small, regional companies sell through independent agents.
We just showed you a lot of ways to reduce insurance prices online. The most important thing to understand is the more companies you get rates for, the better likelihood of reducing your rate. You may even find the biggest savings come from a company that doesn’t do a lot of advertising. Some small companies can often provide lower rates in certain areas compared to the large companies like State Farm or Progressive.