Overpriced auto insurance can empty your bank account and make it impossible to make ends meet. Shopping your coverage around is a smart way to slash your bill and have more diposable income. Since consumers have many insurance providers from which to choose, it can be impossible to find the most cost effective car insurance company.
It’s important to compare rates at least once a year because rates tend to go up over time. Despite the fact that you may have had the best price a year ago you may be paying too much now. So just block out anything you think you know about auto insurance because we’re going to show you the things you must know in order to find lower rates on auto insurance.
Do you qualify for a discount?
Insurance can cost an arm and a leg, but companies offer discounts to help bring down the price. Most are applied at quote time, but lesser-known reductions have to be specially asked for in order for you to get them. If you aren’t receiving every discount available, you’re just leaving money on the table.
- Life Insurance – Larger companies have a discount if you purchase auto and life insurance together.
- Organization Discounts – Being a member of a civic or occupational organization is a good way to get lower rates on auto insurance.
- Resident Student – Any of your kids living away from home attending college without a vehicle on campus may qualify for this discount.
- New Vehicle Savings – Insuring a new car can save up to 30% since new cars are generally safer.
- Drivers Education – Require your teen driver to enroll in driver’s education in school.
- No Claims – Drivers with accident-free driving histories can save substantially when compared with frequent claim filers.
- Passive Restraints and Air Bags – Factory air bags and/or automatic seat belt systems may earn rate discounts up to 30%.
Drivers should understand that some of the credits will not apply to your bottom line cost. Some only reduce the cost of specific coverages such as collision or personal injury protection. So when it seems like all those discounts means the company will pay you, it doesn’t quite work that way. But all discounts will cut the cost of coverage.
To choose insurance companies who offer auto insurance discounts in Kingsport, click here to view.
How insurance companies determine rates
It’s important that you understand the rating factors that help determine the price you pay for auto insurance. When you know what positively or negatively influences your rates allows you to make educated decisions that can help you get big savings.
The following are some of the items companies use to determine your rates.
- Discounts for married couples – Having a spouse helps lower the price on auto insurance. Having a significant other means you’re more mature and it’s proven that being married results in fewer claims.
- Do you know your deductibles? – The deductibles represent how much money you are required to spend before your auto insurance pays a claim. Physical damage coverage, termed comprehensive and collision coverage on your policy, covers damage that occurs to your car. Examples of covered claims are colliding with a building, damage caused by hail, and windstorm damage. The more money you’re willing to pay, the less your company will charge you for insurance.
- Do you work long hours in a high stress job? – Jobs such as real estate brokers, business owners and dentists are shown to have the highest average rates attributed to stressful work requirements and lengthy work days. Other occupations like scientists, historians and the unemployed pay the least.
- Clean credit earns discounts – Your credit score is a important factor in determining your rates. So if your credit history is lower than you’d like, you could be paying less to insure your by improving your rating. Drivers who have high credit scores tend to be better drivers and file fewer claims than drivers with poor credit.
- Special features that cut premiums – Choosing a vehicle with a theft deterrent system can help bring down rates. Anti-theft features such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can thwart your vehicle from being stolen.
- Protect yourself with liability coverage – The liability section of your policy is the coverage that protects you if ever you are found liable for damages caused by your negligence. It provides for a legal defense up to the limits shown on your policy. This coverage is very inexpensive compared to insuring for physical damage coverage, so do not cut corners here.
What coverages do I need?
When choosing coverage, there really is no perfect coverage plan. Everyone’s needs are different so this has to be addressed. For instance, these questions might help in determining if your situation may require specific advice.
- Who is covered by my policy?
- Can my teen driver be rated on a liability-only vehicle?
- Why am I required to buy high-risk coverage?
- Why does it cost so much to insure a teen driver in Kingsport?
- Will my vehicle be repaired with OEM or aftermarket parts?
- Do I really need UM/UIM coverage?
- Does my insurance cover my expensive audio equipment?
- Do I get a pro-rated refund if I cancel my policy early?
If you can’t answer these questions but a few of them apply, then you may want to think about talking to an insurance agent. If you want to speak to an agent in your area, simply complete this short form or go to this page to view a list of companies. It only takes a few minutes and can help protect your family.
Learn more about auto insurance in Tennessee
Much more information about auto insurance in Tennessee can be read on the website for the Tennessee Department of Commerce and Insurance. Click here for link. Tennessee drivers can read enforcement actions against agents and companies, file complaints about a company, and find disaster information.
Also read more on these car insurance answers and this link which helps you find a Kingsport agent.
A little work can save a LOT of money
In this article, we covered a lot of techniques to compare auto insurance prices online. It’s most important to understand that the more times you quote, the higher the chance of saving money. Drivers may discover the best prices are with a lesser-known regional company. These companies may only write in your state and offer lower rates than the large multi-state companies such as Allstate, GEICO and Progressive.
Low-cost auto insurance is possible online and also from your neighborhood Kingsport agents, and you need to price shop both so you have a total pricing picture. Some insurance companies may not provide online quoting and these regional insurance providers work with independent agents.