Have you had enough of not being able to afford to pay your car insurance bill each month? You’re in the same situation as millions of other consumers.
Because there are so many options when it comes to car insurance, it’s difficult to find the most cost effective company.
Smart consumers take time to compare prices periodically because rates are rarely the same from one policy term to another. If you had the best deal six months ago you can probably find a lower rate today. So block out anything you think you know about car insurance because I’m going to teach you the things you must know in order to save money, get proper coverage and the best rates.
Buying car insurance in Greenwood is not rocket science. Basically, everyone who shops for car insurance should be able to find lower rates. But South Carolina car owners do need to understand the way insurance companies price online insurance and take advantage of how the system works.
Car insurance companies don’t list all their discounts very well, so here is a list both the well known and the more hidden car insurance savings.
It’s important to understand that most credits do not apply to the overall cost of the policy. Most only apply to specific coverage prices like medical payments or collision. Even though it may seem like adding up those discounts means a free policy, car insurance companies aren’t that generous.
Car insurance companies such as Allstate and Progressive consistently run ads on television and other media. They all seem to have a common claim that you’ll save big if you change your policy. How do they all say the same thing?
All companies have a certain “appetite” for the driver that earns them a profit. For example, a preferred risk might be profiled as a mature driver, has no tickets, and has a short commute. Any new insured who meets those qualifications will get the preferred rates and most likely will pay quite a bit less when switching companies.
Potential customers who don’t meet the requirements will have to pay a more expensive rate and ends up with business going elsewhere. The ads say “people who switch” not “everybody who quotes” save that much. This is how insurance companies can confidently advertise the way they do. Because of the profiling, it’s extremely important to get as many quotes as possible. It is impossible to predict which insurance companies will fit your personal profile best.
Having a good grasp of your policy helps when choosing which coverages you need and proper limits and deductibles. Policy terminology can be difficult to understand and reading a policy is terribly boring. Below you’ll find typical coverage types found on the average car insurance policy.
This pays to fix your vehicle from damage from a wide range of events other than collision. You need to pay your deductible first and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive insurance covers claims such as hitting a bird, hail damage, vandalism and falling objects. The maximum payout you can receive from a comprehensive claim is the cash value of the vehicle, so if the vehicle is not worth much it’s not worth carrying full coverage.
Personal Injury Protection (PIP) and medical payments coverage provide coverage for expenses for things like hospital visits, doctor visits and pain medications. They can be used to fill the gap from your health insurance policy or if there is no health insurance coverage. Medical payments and PIP cover not only the driver but also the vehicle occupants in addition to being hit by a car walking across the street. PIP is not an option in every state and may carry a deductible
Collision insurance pays for damage to your vehicle from colliding with another car or object. You have to pay a deductible then your collision coverage will kick in.
Collision coverage protects against things like hitting a parking meter, crashing into a building, crashing into a ditch and backing into a parked car. Collision is rather expensive coverage, so you might think about dropping it from vehicles that are 8 years or older. Drivers also have the option to raise the deductible to get cheaper collision coverage.
Uninsured or Underinsured Motorist coverage provides protection when the “other guys” are uninsured or don’t have enough coverage. Covered losses include injuries to you and your family and damage to your vehicle.
Due to the fact that many South Carolina drivers carry very low liability coverage limits (which is 25/50/25), their liability coverage can quickly be exhausted. That’s why carrying high Uninsured/Underinsured Motorist coverage is a good idea.
Liability coverage will cover injuries or damage you cause to people or other property in an accident. It consists of three limits, bodily injury per person, bodily injury per accident and property damage. As an example, you may have policy limits of 100/300/100 which means a limit of $100,000 per injured person, a total of $300,000 of bodily injury coverage per accident, and a limit of $100,000 paid for damaged property.
Liability coverage pays for claims such as medical services, repair bills for other people’s vehicles, funeral expenses and structural damage. How much coverage you buy is a decision to put some thought into, but it’s cheap coverage so purchase as large an amount as possible. South Carolina requires drivers to carry at least 25,000/50,000/25,000 but you should think about purchasing more coverage.
More tips and info about car insurance can be read at the South Carolina Department of Insurance website. South Carolina drivers can find out which companies have the most complaints, find a variety of consumer forms, learn about insurance regulations, and report car insurance fraud.
We covered many tips how you can compare car insurance prices online. It’s most important to understand that the more rate quotes you have, the higher your chance of finding lower rates. You may even discover the biggest savings come from a lesser-known regional company. Some small companies may often insure only within specific states and give getter rates compared to the large companies like Allstate and Progressive.
Cheap car insurance is available online and also from your neighborhood Greenwood agents, so you should compare both to have the best chance of lowering rates. Some car insurance companies may not provide online price quotes and usually these small, regional companies provide coverage only through local independent agents.
When shopping online for car insurance, it’s not a good idea to buy poor coverage just to save money. There have been many cases where an insured cut full coverage only to regret that the few dollars in savings costed them thousands. Your focus should be to buy a smart amount of coverage at a price you can afford, not the least amount of coverage.