Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Believe me, you are not the only one feeling buyer’s remorse. With consumers having so many auto insurance companies to choose from, it’s difficult to choose the most cost effective insurer.
You should take the time to do rate comparisons quite often because prices are variable and change quite frequently. If you had the best price on Civic insurance last year you may be paying too much now. Forget anything you know (or think you know) about auto insurance because we’re going to demonstrate the quickest way to get good coverage at a lower rate.
The purpose of this post is to introduce you to how to effectively get price quotes and some tips to save money. If you currently have car insurance, you should be able to save some money using this strategy. Consumers only need an understanding of the proper methods to buy auto insurance on the web.
Finding a better price on insurance isn’t really that difficult. You just need to take a few minutes to compare quotes provided by online insurance companies. This can be done in a couple of different ways.
It’s up to you which method you use, but ensure you are comparing identical quote information with each company. If you compare differing limits it will be impossible to decipher which rate is best.
Insuring your fleet can be pricey, but you may find discounts to help offset the cost. Some discounts apply automatically at the time you complete a quote, but lesser-known reductions have to be manually applied before you get the savings. If you aren’t receiving every discount possible, you are throwing money away.
It’s important to understand that most credits do not apply to the overall cost of the policy. Most only apply to the price of certain insurance coverages like liability, collision or medical payments. So even though it sounds like it’s possible to get free car insurance, companies wouldn’t make money that way. Any amount of discount will bring down your overall premium however.
To see a list of insurance companies who offer insurance discounts, click this link.
Consumers need to have an understanding of some of the elements that go into determining insurance rates. Having a good understanding of what determines base rates allows you to make educated decisions that can help you get better insurance rates.
Listed below are a partial list of the pieces companies use to determine your rates.
When choosing coverage for your personal vehicles, there isn’t really a one size fits all plan. Coverage needs to be tailored to your specific needs so your insurance should reflect that For example, these questions can aid in determining if your situation would benefit from professional advice.
If you can’t answer these questions but you know they apply to you, then you may want to think about talking to an agent. To find lower rates from a local agent, fill out this quick form or click here for a list of car insurance companies in your area. It is quick, free and may give you better protection.
Consumers constantly see and hear ads for the lowest price auto insurance from the likes of State Farm, Geico and Progressive. All the companies make the same claim of big savings if you move your coverage to them.
How does each company make the same claim?
Different companies are able to cherry pick for the type of customer that makes them money. For example, a profitable customer could possibly be over the age of 40, has no driving citations, and has great credit. A driver who matches those parameters will get the preferred rates and as a result will probably save when switching.
Drivers who fall outside the requirements will be charged higher prices which usually ends up with business not being written. The ads say “customers who switch” not “everyone that quotes” save money. That’s the way insurance companies can confidently claim big savings.
That is why you should get as many comparisons as possible. You cannot predict which company will have the lowest Honda Civic insurance rates.
Understanding the coverages of insurance can help you determine appropriate coverage at the best deductibles and correct limits. Insurance terms can be ambiguous and even agents have difficulty translating policy wording. Below you’ll find the normal coverages available from insurance companies.
Med pay and Personal Injury Protection (PIP) – Med pay and PIP coverage reimburse you for immediate expenses for things like chiropractic care, ambulance fees and X-ray expenses. The coverages can be used in conjunction with a health insurance plan or if you are not covered by health insurance. Medical payments and PIP cover both the driver and occupants and also covers if you are hit as a while walking down the street. Personal injury protection coverage is not universally available but can be used in place of medical payments coverage
Liability auto insurance – Liability insurance can cover damage that occurs to people or other property in an accident. It protects you from legal claims by others, and doesn’t cover your own vehicle damage or injuries.
It consists of three limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. As an example, you may have limits of 25/50/25 which means $25,000 in coverage for each person’s injuries, a per accident bodily injury limit of $50,000, and property damage coverage for $25,000. Alternatively, you may have a combined limit which provides one coverage limit without having the split limit caps.
Liability coverage pays for things like loss of income, structural damage, court costs, funeral expenses and repair bills for other people’s vehicles. The amount of liability coverage you purchase is a personal decision, but it’s cheap coverage so purchase as high a limit as you can afford.
Collision – This covers damage to your Civic resulting from a collision with an object or car. You first must pay a deductible and the rest of the damage will be paid by collision coverage.
Collision insurance covers claims like colliding with another moving vehicle, driving through your garage door, scraping a guard rail and backing into a parked car. Paying for collision coverage can be pricey, so you might think about dropping it from lower value vehicles. You can also choose a higher deductible to get cheaper collision coverage.
Uninsured/Underinsured Motorist (UM/UIM) – Uninsured or Underinsured Motorist coverage gives you protection from other drivers when they are uninsured or don’t have enough coverage. This coverage pays for hospital bills for your injuries and damage to your Honda Civic.
Because many people only purchase the least amount of liability that is required, their limits can quickly be used up. This is the reason having UM/UIM coverage is important protection for you and your family. Usually these coverages are similar to your liability insurance amounts.
Comprehensive insurance – Comprehensive insurance pays for damage from a wide range of events other than collision. A deductible will apply and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive can pay for things such as theft, hail damage, a broken windshield, damage from flooding and a tree branch falling on your vehicle. The most your insurance company will pay is the ACV or actual cash value, so if your deductible is as high as the vehicle’s value it’s not worth carrying full coverage.
When shopping online for insurance coverage, it’s not a good idea to sacrifice coverage to reduce premiums. There have been many situations where an insured cut liability coverage limits and learned later that a couple dollars of savings turned into a financial nightmare. The aim is to find the BEST coverage at a price you can afford while still protecting your assets.
You just learned some good ideas how you can compare 2004 Honda Civic insurance prices online. It’s most important to understand that the more rate quotes you have, the better likelihood of reducing your rate. You may be surprised to find that the best prices are with the smaller companies. Smaller companies often have lower prices on specific markets than the large multi-state companies such as Allstate, Geico and Progressive.
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