Did you fall for a flashy sales pitch and buy an overpriced insurance policy? Believe me when I say you’re not alone.
Many insurance companies compete for your insurance dollar, so it can be very hard to choose a company and uncover the absolute cheapest price
Consumers need to have an understanding of the different types of things that play a part in calculating the price you pay for insurance. Having a good understanding of what determines base rates enables informed choices that will entitle you to big savings.
Shown below are some of the factors insurance companies consider when setting prices.
Insurance can be prohibitively expensive, but there are discounts available that many people don’t even know exist. Certain discounts will be applied at quote time, but some may not be applied and must be inquired about before they will apply.
Consumers should know that many deductions do not apply to your bottom line cost. Most cut individual premiums such as comp or med pay. Just because it seems like adding up those discounts means a free policy, you won’t be that lucky. But any discount will cut the amount you have to pay.
For a list of companies who offer auto insurance discounts, click here to view.
When buying the right insurance coverage for your personal vehicles, there isn’t really a cookie cutter policy. Everyone’s situation is unique so your insurance needs to address that. For example, these questions could help you determine whether your personal situation might need an agent’s assistance.
If you don’t know the answers to these questions but you know they apply to you, then you may want to think about talking to an insurance agent. To find lower rates from a local agent, take a second and complete this form or go to this page to view a list of companies.
Learning about specific coverages of your policy aids in choosing appropriate coverage at the best deductibles and correct limits. The coverage terms in a policy can be confusing and even agents have difficulty translating policy wording. Listed below are the usual coverages offered by insurance companies.
Medical payments coverage and PIP – Coverage for medical payments and/or PIP kick in for bills like doctor visits, EMT expenses, rehabilitation expenses, surgery and ambulance fees. They can be used in conjunction with a health insurance policy or if you lack health insurance entirely. They cover both the driver and occupants and also covers getting struck while a pedestrian. PIP coverage is only offered in select states and may carry a deductible
Comprehensive coverage – This coverage will pay to fix damage from a wide range of events other than collision. You first must pay your deductible and then insurance will cover the rest of the damage.
Comprehensive can pay for things like a tree branch falling on your vehicle, damage from a tornado or hurricane, hitting a deer, rock chips in glass and damage from getting keyed. The maximum amount your insurance company will pay is the ACV or actual cash value, so if it’s not worth much more than your deductible consider dropping full coverage.
Collision – This pays for damage to your 900 caused by collision with another car or object. You will need to pay your deductible and then insurance will cover the remainder.
Collision coverage pays for claims such as rolling your car, sideswiping another vehicle, colliding with a tree, crashing into a building and backing into a parked car. Collision coverage makes up a good portion of your premium, so you might think about dropping it from lower value vehicles. Another option is to bump up the deductible to get cheaper collision coverage.
Uninsured/Underinsured Motorist coverage – Uninsured or Underinsured Motorist coverage protects you and your vehicle when the “other guys” are uninsured or don’t have enough coverage. Covered losses include injuries sustained by your vehicle’s occupants and damage to your Saab 900.
Because many people have only the minimum liability required by law, it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is very important. Usually your uninsured/underinsured motorist coverages are similar to your liability insurance amounts.
Liability auto insurance – This can cover damages or injuries you inflict on other’s property or people. This insurance protects YOU against other people’s claims, and does not provide coverage for your injuries or vehicle damage.
Liability coverage has three limits: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. You might see liability limits of 100/300/100 that means you have a $100,000 limit per person for injuries, a per accident bodily injury limit of $300,000, and a total limit of $100,000 for damage to vehicles and property. Another option is a combined limit which limits claims to one amount and claims can be made without the split limit restrictions.
Liability insurance covers things such as medical expenses, legal defense fees, repair costs for stationary objects and court costs. How much coverage you buy is your choice, but buy higher limits if possible.
Cheap 1990 Saab 900 insurance can be sourced from both online companies and with local insurance agents, and you should be comparing both in order to have the best price selection to choose from. Some insurance companies do not offer online quoting and usually these small, regional companies provide coverage only through local independent agents.
When you buy insurance online, never skimp on critical coverages to save a buck or two. In too many instances, consumers will sacrifice liability limits or collision coverage to discover at claim time that saving that couple of dollars actually costed them tens of thousands. The proper strategy is to purchase a proper amount of coverage at the best price, not the least amount of coverage.
Much more information about car insurance can be read on the following sites: