Finding affordable insurance is a challenge for people who are new to buying insurance online. People have so many companies to choose from that it can turn into a big hassle to compare prices.
Smart consumers have a good feel for the factors that come into play when calculating the price you pay for auto insurance. Understanding what controls the rates you pay allows you to make educated decisions that may reward you with much lower annual insurance costs.
The price of auto insurance can be rather high, but you may find discounts that many people don’t even know exist. Certain discounts will be triggered automatically when you get a quote, but a few need to be manually applied before they will apply.
A little note about advertised discounts, some of the credits will not apply to the entire policy premium. A few only apply to individual premiums such as physical damage coverage or medical payments. So even though they make it sound like all the discounts add up to a free policy, it just doesn’t work that way. Any amount of discount will help reduce the cost of coverage.
Companies that may offer some of the above discounts include:
Before buying, ask each insurance company which discounts they offer. All car insurance discounts may not apply in every state.
Companies like Progressive, Allstate and GEICO consistently run ads on TV and radio. All the ads make the same claim that you’ll save big if you change your policy. How can each company say the same thing?
Insurance companies are able to cherry pick for the type of customer that is profitable for them. For instance, a preferred risk might be between the ages of 40 and 55, a clean driving record, and drives newer vehicles. A customer who meets those qualifications will qualify for the lowest rates and is almost guaranteed to cut their rates substantially.
Drivers who don’t meet the “perfect” profile will have to pay higher rates and this can result in the driver buying from a lower-cost company. The ad wording is “drivers who switch” not “everyone that quotes” save money. That’s the way companies can claim big savings.
Because of the profiling, drivers must get quotes from several different companies. You cannot predict which company will provide you with the cheapest Cadillac Escalade ESV insurance rates.
When buying coverage for your personal vehicles, there really is no perfect coverage plan. Your needs are not the same as everyone else’s.
For example, these questions may help you determine whether you might need an agent’s assistance.
If you’re not sure about those questions but you think they might apply to your situation then you might want to talk to an insurance agent. If you want to speak to an agent in your area, fill out this quick form.
Learning about specific coverages of your policy can help you determine the right coverages and the correct deductibles and limits. Policy terminology can be confusing and coverage can change by endorsement.
Collision protection
Collision coverage will pay to fix damage to your Escalade ESV resulting from colliding with another vehicle or an object, but not an animal. A deductible applies then the remaining damage will be paid by your insurance company.
Collision can pay for claims such as crashing into a building, sideswiping another vehicle and backing into a parked car. Collision coverage makes up a good portion of your premium, so you might think about dropping it from older vehicles. It’s also possible to increase the deductible to get cheaper collision coverage.
Comprehensive auto coverage
Comprehensive insurance covers damage from a wide range of events other than collision. You need to pay your deductible first then your comprehensive coverage will pay.
Comprehensive coverage pays for things such as fire damage, falling objects, hitting a bird and hail damage. The maximum amount you’ll receive from a claim is the actual cash value, so if your deductible is as high as the vehicle’s value consider removing comprehensive coverage.
UM/UIM (Uninsured/Underinsured Motorist) coverage
Your UM/UIM coverage gives you protection from other motorists when they either are underinsured or have no liability coverage at all. Covered losses include injuries to you and your family as well as your vehicle’s damage.
Since many drivers only purchase the least amount of liability that is required, their limits can quickly be used up. That’s why carrying high Uninsured/Underinsured Motorist coverage is a good idea. Most of the time these coverages are identical to your policy’s liability coverage.
Liability coverages
This coverage can cover damage that occurs to other people or property. It protects you against claims from other people, and doesn’t cover your injuries or vehicle damage.
Liability coverage has three limits: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. You commonly see values of 50/100/50 that means you have $50,000 in coverage for each person’s injuries, a per accident bodily injury limit of $100,000, and $50,000 of coverage for damaged propery. Alternatively, you may have a combined limit which provides one coverage limit with no separate limits for injury or property damage.
Liability coverage protects against things like structural damage, attorney fees, medical expenses and loss of income. The amount of liability coverage you purchase is your choice, but consider buying as high a limit as you can afford.
Medical payments and PIP coverage
Personal Injury Protection (PIP) and medical payments coverage kick in for bills for prosthetic devices, rehabilitation expenses, pain medications and hospital visits. They are used to cover expenses not covered by your health insurance plan or if there is no health insurance coverage. Coverage applies to you and your occupants in addition to being hit by a car walking across the street. PIP coverage is only offered in select states but it provides additional coverages not offered by medical payments coverage
As you prepare to switch companies, it’s very important that you do not reduce needed coverages to save money. There have been many cases where drivers have reduced comprehensive coverage or liability limits to discover at claim time they didn’t have enough coverage. The ultimate goal is to find the BEST coverage for the lowest price while still protecting your assets.
Drivers switch companies for any number of reasons including extreme rates for teen drivers, high prices, denial of a claim or policy cancellation. Regardless of your reason, switching car insurance companies is pretty simple and you could end up saving a buck or two.
We just covered quite a bit of information on how to reduce 2010 Cadillac Escalade ESV insurance prices online. The key thing to remember is the more providers you compare, the better likelihood of reducing your rate. Consumers could even find that the lowest rates come from a small local company.
More detailed car insurance information is available by following these links: