Have you fallen victim to an overpriced car insurance policy? Believe me, you are not the only one feeling buyer’s remorse.
With consumers having so many insurance companies to choose from, it can be diffult for consumers to locate the best car insurance company.
It’s smart to price shop coverage at least once a year because prices change frequently. Just because you found the lowest rates a couple years back you may be paying too much now. So just ignore everything you know about car insurance because you’re going to get a crash course in how to use online quotes to reduce your cost while increasing coverage.
Pay less by taking advantage of discounts
Insuring your vehicles can cost a lot, but there are discounts available that can drop the cost substantially. Certain discounts will be applied when you quote, but lesser-known reductions have to be asked about in order for you to get them.
- Student in College – Kids in college who are attending college without a vehicle on campus may be able to be covered for less.
- Theft Prevention System – Vehicles with anti-theft systems help deter theft and therefore earn up to a 10% discount.
- Drive Safe and Save – Drivers who don’t get into accidents may save up to 50% more than their less cautious counterparts.
- More Vehicles More Savings – Insuring multiple cars or trucks with the same company could earn a price break for each car.
- Save over 55 – Mature drivers may be able to get better car insurance rates.
- Discount for New Cars – Insuring a new car is cheaper because new vehicles have to meet stringent safety requirements.
- Drive Less and Save – Low mileage vehicles can qualify you for discounted rates on garaged vehicles.
- Federal Government Employee – Being employed by or retired from a federal job could cut as much as 10% off with a few car insurance companies.
It’s important to note that some of the credits will not apply to all coverage premiums. The majority will only reduce the price of certain insurance coverages like comprehensive or collision. Just because you may think all the discounts add up to a free policy, companies wouldn’t make money that way. But any discount will cut your premiums.
Many Things Influence your Rates
Smart consumers have a good feel for some of the elements that help determine the rates you pay for car insurance. Understanding what controls the rates you pay allows you to make educated decisions that will entitle you to big savings.
The following are a partial list of the pieces companies use to determine prices.
- More performance means more cost – The type of car you own makes a significant difference in your rates. Lower performance four cylinder passenger cars generally receive the lowest base rates, but there are many factors that impact the final cost.
- Credit scores impact car insurance rates – Credit rating is a large factor in your rate calculation. People with excellent credit tend to be more responsible than drivers who have poor credit. Therefore, if your credit history can use some improvement, you could pay less to insure your by improving your credit score.
- One company can mean more discounts – Most companies will award you with lower prices to insureds who consolidate policies with them in the form of a multi-policy discount. Even if you’re getting this discount you still need to compare other company rates to confirm you are receiving the best rates possible. You may still be able to find better rates by insuring with multiple companies.
- What are your deductibles? – Deductibles for physical damage represent how much money you are willing to pay before your car insurance pays a claim. Insurance for physical damage to your car, termed comprehensive and collision coverage on your policy, is used to repair damage to your car. Some examples of claims that would be covered would be colliding with a building, collision with an animal, or theft. The more expense the insured has to pay upfront, the less your company will charge you for insurance.
- Sex matters – Statistics have proven women tend to be less risk to insure than men. That doesn’t necessarily mean that men are WORSE drivers than women. They both cause accidents in similar percentages, but the males cause more damage. They also receive more costly citations such as reckless driving. Male drivers age 16 to 19 are several times more likely to be in an accident and thus pay the highest rates.
- Liability coverage is peace of mind – Liability insurance provides coverage in the event that you are found to be at fault for damages caused by your negligence. It will provide you with a defense in court which can cost thousands of dollars. Liability is cheap compared to physical damage coverage, so drivers should carry high limits.
More information can be read on the website for the Iowa Insurance Division found here. Consumers can report car insurance fraud, view agent and company licensing information, and learn about insurance regulations.
Discount car insurance is definitely available both online in addition to many Dubuque insurance agents, and you need to comparison shop both to have the best chance of lowering rates. Some companies do not provide online quoting and usually these regional insurance providers provide coverage only through local independent agents.
You just learned a lot of information how to save on car insurance. The key thing to remember is the more quotes you get, the higher your chance of finding lower rates. You may even find the lowest premiums are with the smaller companies. Regional companies may have significantly lower rates on certain market segments than the large multi-state companies such as Progressive or GEICO.
While you’re price shopping online, don’t be tempted to buy lower coverage limits just to save a few bucks. In too many instances, drivers have reduced full coverage and discovered at claim time they didn’t purchase enough coverage. The proper strategy is to find the BEST coverage at an affordable rate while still protecting your assets.