Paying for high-priced car insurance can take a big chunk out of your savings account and put the squeeze on your family’s finances. Comparing price quotes is free and is an excellent way to tighten up your finances. Drivers have so many insurers to buy insurance from, and although it’s nice to be able to choose, so many choices can make it hard to compare rates.
Auto insurance companies don’t necessarily list all their discounts in a way that’s easy to find, so we break down some of the best known and the more hidden car insurance savings. If you aren’t receiving every discount available, you are throwing money away.
Keep in mind that most credits do not apply to the overall cost of the policy. Most only reduce individual premiums such as physical damage coverage or medical payments. Just because it seems like you could get a free car insurance policy, you won’t be that lucky.
More detailed Iowa car insurance information can be read at the Iowa Insurance Division website. Iowa consumers can file complaints about a company, read industry bulletins, and get help finding coverage.
Understanding the coverages of your policy helps when choosing the right coverages and proper limits and deductibles. The coverage terms in a policy can be ambiguous and even agents have difficulty translating policy wording. Below you’ll find the normal coverages offered by car insurance companies.
Comprehensive insurance pays for damage OTHER than collision with another vehicle or object. You first must pay your deductible and then insurance will cover the rest of the damage.
Comprehensive insurance covers things such as hail damage, hitting a deer and theft. The highest amount a car insurance company will pay at claim time is the actual cash value, so if your deductible is as high as the vehicle’s value consider dropping full coverage.
Coverage for medical payments and/or PIP provide coverage for bills such as prosthetic devices, nursing services and chiropractic care. They can be used in conjunction with a health insurance plan or if you are not covered by health insurance. It covers both the driver and occupants as well as getting struck while a pedestrian. PIP is only offered in select states and may carry a deductible
This provides protection when the “other guys” are uninsured or don’t have enough coverage. Covered claims include medical payments for you and your occupants and damage to your vehicle.
Since many Iowa drivers carry very low liability coverage limits (20/40/15 in Iowa), their liability coverage can quickly be exhausted. So UM/UIM coverage is a good idea.
This provides protection from damage or injury you incur to other people or property by causing an accident. It protects you from claims by other people. It does not cover 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. As an example, you may have liability limits of 100/300/100 which means $100,000 bodily injury coverage, a limit of $300,000 in injury protection per accident, and a total limit of $100,000 for damage to vehicles and property.
Liability coverage pays for claims like structural damage, repair bills for other people’s vehicles, medical expenses and medical services. The amount of liability coverage you purchase is a personal decision, but it’s cheap coverage so purchase as much as you can afford. Iowa requires drivers to carry at least 20,000/40,000/15,000 but you should think about purchasing higher limits.
This coverage will pay to fix damage to your vehicle from colliding with another vehicle or an object, but not an animal. You have to pay a deductible and the rest of the damage will be paid by collision coverage.
Collision can pay for claims such as rolling your car, sideswiping another vehicle, damaging your car on a curb, scraping a guard rail and colliding with a tree. Collision coverage makes up a good portion of your premium, so consider removing coverage from vehicles that are older. It’s also possible to raise the deductible to save money on collision insurance.
Low-cost car insurance can be bought from both online companies and with local Sioux City insurance agents, and you need to price shop both in order to have the best price selection to choose from. There are still a few companies who do not offer the ability to get a quote online and most of the time these small insurance companies sell through independent agents.
As you shop your coverage around, it’s not a good idea to reduce coverage to reduce premium. In many instances, an insured cut collision coverage and found out when filing a claim that it was a big mistake. The proper strategy is to buy a smart amount of coverage for the lowest price.