Are you tired of not being able to afford to keep your car insured? Your situation is no different than most other vehicle owners. You have so many car insurance companies to insure vehicles with, and even though it’s nice to be able to choose, more options can take longer to find the best rates.
Part of the car insurance buying process is learning a few of the rating criteria that aid in calculating the rates you pay for car insurance. If you have some idea of what determines premiums, this empowers consumers to make smart changes that may result in lower car insurance prices.
The items below are some of the most rate-impacting factors used by companies to determine premiums.
Insurance can be pricey, but there may be some discounts that may help make it more affordable. Certain discounts will be triggered automatically when you get a quote, but some may not be applied and must be specially asked for before you will receive the discount.
Discounts reduce rates, but you should keep in mind that most of the big mark downs will not be given to the overall cost of the policy. Most only cut specific coverage prices like comprehensive or collision. If you do the math and it seems like you can get free auto insurance, company stockholders wouldn’t be very happy.
Companies and a summarized list of policyholder discounts are outlined below.
Before you buy a policy, ask each company or agent to give you their best rates. Savings may not apply in every state. To locate companies with significant discounts, follow this link.
Consumers can’t get away from all the ads that promise big savings from the likes of Allstate, Geico and Progressive. All the ads make the same claim about how much you will save if you change your policy.
How can each company have lower policy pricing? This is the trick they use.
Different companies require specific criteria for the type of customer that earns them the highest profit. A good example of a driver they prefer might be described as over age 30, has no driving citations, and drives less than 7,500 miles a year. A propective insured that fits those parameters will qualify for the lowest rates and have a good chance to save a lot if they switch.
Potential customers who don’t qualify for the ideal profile must pay higher rates which translates to the customer buying from someone else. If you pay attention, the ads say “customers that switch” not “everyone that quotes” save the amount stated. That is how insurance companies can confidently make it sound like they have such great auto insurance rates. Because every company is different, you need to compare rate quotes every year. It is impossible to guess which company will give you the biggest savings.
When choosing adequate coverage for your vehicles, there really is not a “perfect” insurance plan. Each situation is unique so your insurance needs to address that. These are some specific questions may help highlight if you might need an agent’s assistance.
If you’re not sure about those questions, you might consider talking to an agent. If you don’t have a local agent, complete this form or click here for a list of auto insurance companies in your area. It’s fast, free and can help protect your family.
Having a good grasp of your auto insurance policy aids in choosing the right coverages and the correct deductibles and limits. The coverage terms in a policy can be difficult to understand and nobody wants to actually read their policy. Listed below are the normal coverages offered by auto insurance companies.
Comprehensive insurance coverage will pay to fix damage caused by mother nature, theft, vandalism and other events. You first must pay your deductible and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage protects against things such as hitting a deer, fire damage, rock chips in glass and vandalism. The most you’ll receive from a claim is the market value of your vehicle, so if the vehicle’s value is low consider removing comprehensive coverage.
Uninsured or Underinsured Motorist coverage provides protection when other motorists do not carry enough liability coverage. Covered losses include injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Since a lot of drivers carry very low liability coverage limits, it only takes a small accident to exceed their coverage. That’s why carrying high Uninsured/Underinsured Motorist coverage should not be overlooked.
Med pay and PIP coverage kick in for short-term medical expenses like funeral costs, EMT expenses, hospital visits and doctor visits. They are often used in conjunction with a health insurance program or if you are not covered by health insurance. It covers you and your occupants as well as being hit by a car walking across the street. Personal injury protection coverage is not available in all states but can be used in place of medical payments coverage
Liability insurance protects you from damage or injury you incur to other people or property by causing an accident. This insurance protects YOU from claims by other people. Liability doesn’t cover your own vehicle damage or injuries.
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 limit of $100,000 per injured person, a per accident bodily injury limit of $300,000, and a limit of $100,000 paid for damaged property.
Liability coverage pays for claims like legal defense fees, medical services, bail bonds, structural damage and repair bills for other people’s vehicles. 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.
This covers damage to your Golf Alltrack caused by collision with another car or object. You first must pay a deductible and then insurance will cover the remainder.
Collision coverage pays for claims like crashing into a building, scraping a guard rail, colliding with a tree, backing into a parked car and driving through your garage door. This coverage can be expensive, so you might think about dropping it from lower value vehicles. Another option is to raise the deductible to bring the cost down.
Some insurance providers do not provide the ability to get a quote online and usually these regional insurance providers provide coverage only through local independent agencies. Cost effective 2017 Volkswagen Golf Alltrack insurance is available both online as well as from insurance agents, and you need to price shop both so you have a total pricing picture.
As you restructure your insurance plan, make sure you don’t buy lower coverage limits just to save a few bucks. In many cases, an accident victim reduced collision coverage and discovered at claim time that they should have had better coverage. Your focus should be to get the best coverage possible at a price you can afford while not skimping on critical coverages.
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