Perplexed by the wide range of car insurance companies? You have a lot of company. You have so many companies to choose from that it can turn into a challenge to find better rates.
It’s important that you understand the different types of things that play a part in calculating car insurance rates. Understanding what controls the rates you pay helps enable you to make changes that may reward you with much lower annual insurance costs.
Shown below are some of the items that factor into rates.
Insuring your fleet can be pricey, but discounts can save money and there are some available to help bring down the price. Larger premium reductions will be automatically applied when you purchase, but lesser-known reductions have to be asked for before you will receive the discount.
As a disclaimer on discounts, most credits do not apply to the entire cost. Most cut the price of certain insurance coverages like liability, collision or medical payments. So when the math indicates having all the discounts means you get insurance for free, you won’t be that lucky. But any discount will reduce your premiums.
A partial list of companies that may offer some of the above discounts are:
Check with each insurance company which discounts you may be entitled to. All car insurance discounts may not be available in your state.
When buying the right insurance coverage for your personal vehicles, there is no one size fits all plan. Everyone’s needs are different.
For example, these questions can help discover if you might need professional guidance.
If you’re not sure about those questions, you might consider talking to an insurance agent. If you want to speak to an agent in your area, complete this form.
Understanding the coverages of your policy can be of help when determining appropriate coverage and the correct deductibles and limits. Policy terminology can be confusing and even agents have difficulty translating policy wording.
Uninsured and underinsured coverage
Uninsured or Underinsured Motorist coverage protects you and your vehicle when the “other guys” do not carry enough liability coverage. Covered losses include medical payments for you and your occupants as well as damage to your Nissan Versa Note.
Because many people have only the minimum liability required by law, their liability coverage can quickly be exhausted. So UM/UIM coverage should not be overlooked. Usually your uninsured/underinsured motorist coverages are set the same as your liablity limits.
Collision protection
This pays to fix your vehicle from damage resulting from colliding with a stationary object or other vehicle. You have to pay a deductible and the rest of the damage will be paid by collision coverage.
Collision insurance covers things such as crashing into a building, sustaining damage from a pot hole and scraping a guard rail. This coverage can be expensive, so consider dropping it from older vehicles. You can also raise the deductible to bring the cost down.
Liability auto insurance
Liability coverage protects you from injuries or damage you cause to a person or their property that is your fault. It protects you from claims by other people. Liability doesn’t cover your own vehicle damage or injuries.
Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. Your policy might show policy limits of 25/50/25 that means you have a limit of $25,000 per injured person, $50,000 for the entire accident, and a limit of $25,000 paid for damaged property. Alternatively, you may have one limit called combined single limit (CSL) which combines the three limits into one amount rather than limiting it on a per person basis.
Liability can pay for claims such as attorney fees, medical services and legal defense fees. The amount of liability coverage you purchase is a personal decision, but you should buy as large an amount as possible.
Comprehensive coverages
Comprehensive insurance coverage pays to fix your vehicle from damage that is not covered by collision coverage. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things such as damage from flooding, a tree branch falling on your vehicle and hail damage. The maximum amount a insurance company will pay at claim time is the market value of your vehicle, so if your deductible is as high as the vehicle’s value it’s probably time to drop comprehensive insurance.
Coverage for medical payments
Personal Injury Protection (PIP) and medical payments coverage provide coverage for immediate expenses like surgery, hospital visits and pain medications. The coverages can be utilized in addition to your health insurance policy or if you are not covered by health insurance. They cover not only the driver but also the vehicle occupants as well as being hit by a car walking across the street. PIP is not universally available but can be used in place of medical payments coverage
Drivers who switch companies do it for many reasons like high prices, denial of a claim, policy non-renewal or even lack of trust in their agent. It doesn’t matter why you want to switch switching auto insurance companies is not as difficult as it may seem.
We covered many ways to reduce 2014 Nissan Versa Note insurance prices online. The key thing to remember is the more you quote, the better your chances of lowering your rates. You may be surprised to find that the best price on auto insurance is with a lesser-known regional company.
As you restructure your insurance plan, make sure you don’t buy poor coverage just to save money. In many instances, someone sacrificed comprehensive coverage or liability limits only to find out that they should have had better coverage. Your aim should be to find the BEST coverage at an affordable rate while not skimping on critical coverages.