Paying Too Much for Auto Insurance in Hempstead, NY? Here’s How to Save!

No one in their right mind likes having to buy auto insurance, especially knowing the cost is way too high.

Insurance companies such as GEICO, 21st Century and Progressive constantly bombard you with catchy ads and consumers find it hard to sift through the bull and find the best price available.

Quick Hempstead Auto Insurance Quotes

There are several ways of comparing rate quotes from different in Hempsteadinsurance companies. The fastest way to find competitive insurance rates is to get quotes online. This is very easy and can be done in several different ways.

1. The fastest way to find low rates is to use a rate comparison form (click to open form in new window). This method prevents you from having to do separate quotes to each individual auto insurance company. Taking the time to complete one form gets you coverage quotes instantly.
2. Another way to shop for auto insurance online is to take the time to go to the website for each individual company and request a quote. For example, let’s say you want to compare rates from Progressive, 21st Century and Allstate. You would have to go to every website to input your insurance information, which is why the first method is quicker.

   For a list of links to companies insuring cars in Hempstead, click here.

Whichever method you choose, double check that you are using identical information on every quote you get. If you have different deductibles it will be very difficult to determine the lowest rate in Hempstead. Just a small difference in limits could mean much higher rates. And when price shopping your coverage, quoting more gives you a better chance of getting better pricing.

Do you qualify for a discount?

Auto insurance companies do not list every available discount in an easy-to-find place, so here is a list both well-publicized and also the lesser-known auto insurance savings.

• Federal Employees – Simply working for the federal government may qualify you for a discount with select insurance companies.
• Drive Less and Save – Keeping the miles down can qualify you for better rates on cars that stay parked.
• Senior Discount – If you qualify as a senior citizen, you may receive better auto insurance rates.
• Life Insurance Discount – Some companies give a break if you buy a life insurance policy as well.
• Good Student Discount – A discount for being a good student can get you a discount of up to 25%. The good student discount can last up to age 25.
• Drivers Education – Cut your cost by having your teen driver enroll in driver’s education in high school.
• Memberships – Participating in a qualifying organization may earn a discount when shopping for auto insurance.
• Payment Discounts – By paying your policy upfront instead of making monthly payments you could save up to 5%.
• Bundle and Save – If you have multiple policies with the same insurance company you may earn approximately 10% to 15%.
• Discounts for Safe Drivers – Safe drivers may receive a discount up to 45% less than drivers with accidents.

A little note about advertised discounts, most credits do not apply to the entire policy premium. Most only apply to the price of certain insurance coverages like comprehensive or collision. So when the math indicates you could get a free auto insurance policy, companies wouldn’t make money that way.

To see a list of insurance companies offering auto insurance discounts in New York, click this link.

Rate influencing factors

An important part of buying insurance is that you know some of the elements that go into determining the rates you pay for auto insurance. Knowing what influences your rates empowers consumers to make smart changes that could result in lower auto insurance prices.

Listed below are some of the factors used by your company to calculate premiums.

• Do you know you’re credit rating? – Your credit score is a huge factor in determining your rates. Consumers who have high credit scores tend to be less risk to insure than drivers who have poor credit. Therefore, if your credit is low, you could save money insuring your by spending a little time repairing your credit.
• Your stress level may be raising your rates – Occupations such as judges, executives and financial analysts tend to pay higher average rates because of high stress levels and long work days. Conversely, occupations such as pilots, engineers and the unemployed have the lowest average rates.
• Multi-policy discounts can save money – Most auto insurance companies will award you with lower prices to customers who consolidate policies with them, otherwise known as a multi-policy discount. Even if you’re getting this discount you may still want to compare other company rates to make sure you are getting the best deal.
• Drive a safer car and pay less – Vehicles with high crash test scores get lower rates. Safe vehicles have better occupant injury protection and fewer injuries means lower claim amounts and thus lower rates.
• Special features that cut premiums – Owning a car with anti-theft technology or alarm system can help bring down rates. Theft prevention devices like GM’s OnStar, tamper alarm systems and vehicle immobilizers can help prevent auto theft.
• Lower deductibles cost more – The deductibles define the amount you are required to spend out-of-pocket before a claim is paid by your company. Physical damage coverage, termed comprehensive and collision coverage on your policy, covers damage that occurs to your car. Examples of covered claims would be running into the backend of another car, vandalism, or theft. The more money you’re willing to pay, the less your company will charge you for insurance.
• More performance means more cost – The performance of the car you are insuring makes a big difference in the rate you pay. The cheapest insurance rates are usually for lower performance four cylinder passenger models, but there are many factors that impact the final cost.

More tips and info about auto insurance can be found at the New York Department of Financial Services website. New York consumers can learn about specific coverages, read enforcement actions against agents and companies, read industry bulletins, and get help finding coverage.

Advertising myths

Companies like State Farm, Allstate and GEICO constantly bombard you with ads on TV and radio. All the ads make the same claim about savings if you switch to their company. How can each company make the same claim?

Different companies have a preferred profile for the driver that is profitable for them. For example, a driver they prefer could possibly be over the age of 40, is a homeowner, and chooses high deductibles. A customer that hits that “sweet spot” will get the preferred rates and most likely will save when switching.

Consumers who don’t measure up to these standards must pay a more expensive rate which usually ends up with the customer not buying. The ads say “drivers who switch” but not “drivers who get quotes” save that much money. That is how insurance companies can claim big savings. This illustrates why it is so important to get as many comparisons as possible. Because you never know which auto insurance company will provide you with the cheapest rates.

Smart shoppers get results

You just read many tips how you can get a better price on auto insurance. The key concept to understand is the more price quotes you have, the more likely it is that you will get a better rate. Consumers may even find the lowest priced auto insurance comes from the smaller companies. Smaller companies may often insure only within specific states and give getter rates than their larger competitors like State Farm, GEICO and Nationwide.

Low-cost auto insurance can be found online and with local Hempstead insurance agents, and you need to price shop both to get a complete price analysis. Some auto insurance companies do not offer the ability to get a quote online and many times these small, regional companies only sell through independent insurance agents.

As you prepare to switch companies, never buy lower coverage limits just to save a few bucks. In many instances, an accident victim reduced liability limits or collision coverage and learned later that it was a big error on their part. The proper strategy is to buy a smart amount of coverage for the lowest price.