Have you fallen victim to an underperforming, overpriced car insurance policy? Trust us when we tell you there are many consumers feeling the pinch from expensive car insurance. Online insurance companies like Progressive, State Farm and GEICO increase brand awareness with TV and radio ads and consumers find it hard to ignore the flying pigs and cute green geckos and find the best price available.
Consumers should take time to shop coverage around yearly since rates are rarely the same from one policy term to another. Just because you had the lowest price on Sierra pickup insurance six months ago other companies may now be cheaper. Forget anything you know (or think you know) about car insurance because you’re about to find out the proper way to properly buy coverages while reducing your premium.
If you have a policy now or are just looking to switch companies, you can follow these tips to cut your premiums and still get good coverage. Finding affordable coverage is not that difficult. Vehicle owners just need to understand the tricks to buy car insurance online.
Take discounts and save
Companies that sell car insurance don’t list every discount very well, so the following is a list of both well-publicized and the more hidden car insurance savings. If you don’t get every credit you deserve, you are paying more than you should be.
- Use Seat Belts – Buckling up and requiring all passengers to use their safety belts could cut 10% or more off the personal injury premium cost.
- Save with a New Car – Putting insurance coverage on a new car can save up to 30% due to better safety requirements for new cars.
- Defensive Driver – Taking a course teaching defensive driving skills could possibly earn you a 5% discount if you qualify.
- Good Student Discount – Performing well in school can earn a discount of 20% or more. The good student discount can last up until you turn 25.
- Multiple Policy Discount – When you have multiple policies with the same company you may earn up to 20% off your total premium.
- Drive Less and Save – Keeping the miles down on your GMC could be rewarded with a substantially lower rate.
- Own a Home – Being a homeowner can save you money because owning a home demonstrates responsibility.
- Early Switch Discount – A few companies offer discounts for switching policies before your current expiration date. It’s a savings of about 10%.
- Federal Employees – Employees or retirees of the government can save as much as 8% on Sierra pickup insurance depending on your company.
- Anti-lock Brake Discount – Cars that have steering control and anti-lock brakes can reduce accidents and qualify for as much as a 10% discount.
Consumers should know that some of the credits will not apply to the entire cost. The majority will only reduce individual premiums such as physical damage coverage or medical payments. Even though it may seem like you would end up receiving a 100% discount, companies don’t profit that way.
Complexity of GMC Sierra 2500 Pickup insurance rates
An important part of buying insurance is that you know the factors that come into play when calculating your car insurance rates. Understanding what influences your rates empowers consumers to make smart changes that will entitle you to better car insurance rates.
The list below includes a few of the “ingredients” used by your company to calculate prices.
- Rates may be lower depending on your job – Jobs such as lawyers, architects and dentists are shown to have the highest average rates attributed to high stress and lots of time spent at work. Other professions such as scientists, historians and the unemployed pay the least on Sierra pickup insurance.
- Don’t let your coverage lapse – Driving with no insurance is against the law and as a result your rates will increase for letting your coverage have a gap. Not only will you pay more, failure to provide proof of insurance can result in a steep fine or even jail time.
- More miles equals more premium – The more miles you rack up on your GMC in a year the higher your rates will be. Most insurance companies rate vehicles based upon how you use the vehicle. Vehicles not used for work or commuting qualify for better rates than vehicles that are driven to work every day. If your policy improperly rates your Sierra 2500 Pickup can result in significantly higher rates. Ask your agent if your car insurance policy properly reflects how each vehicle is driven.
- Your location affects your rates – Residing in a rural area can be a good thing when talking about car insurance. Drivers in populated areas have to deal with much more traffic and longer commute times. Fewer drivers means reduced accidents and a lower car theft rate.
- Your credit rating is important – A driver’s credit score is a huge factor in determining your rates. If your credit score is lower than you’d like, you could potentially save money when insuring your GMC Sierra 2500 Pickup by improving your credit score. Consumers who have high credit ratings tend to be less risk to insure than drivers with poor credit.
- Special features that cut premiums – Driving a car with anti-theft technology or alarm system can save you a little every year. Anti-theft devices such as GM’s OnStar, tamper alarm systems and vehicle immobilizers all hinder your vehicle from being stolen.
Are car insurance companies telling the truth?
Consumers can’t ignore all the ads for cheaper car insurance by companies like Allstate and Progressive. They all seem to make the same claim that you can save if you change to them.
How does each company make the same claim? It’s all in the numbers.
All the different companies can use profiling for the right customer they prefer to insure. An example of a desirable insured might be profiled as between the ages of 30 and 50, a clean driving record, and drives newer vehicles. A customer who matches those parameters receives the best rates and is almost guaranteed to save a lot of money.
Potential customers who are not a match for the “perfect” profile will be quoted a more expensive rate and this can result in business going elsewhere. The ad wording is “customers that switch” but not “drivers who get quotes” save that much money. This is how insurance companies can make the claims of big savings. This emphasizes why drivers must get a wide range of price quotes. Because you never know which car insurance company will give you the biggest savings.
Compare but don’t skimp
We covered a lot of tips how to get a better price on GMC Sierra 2500 Pickup insurance. The key thing to remember is the more times you quote, the more likely it is that you will get a better rate. Consumers could even find that the lowest premiums are with a company that doesn’t do a lot of advertising. Regional companies may have significantly lower rates on certain market segments than their larger competitors like Allstate or State Farm.
As you shop your coverage around, it’s a bad idea to buy less coverage just to save a little money. In many instances, someone sacrificed physical damage coverage and learned later that it was a big error on their part. The aim is to buy a smart amount of coverage at a price you can afford while still protecting your assets.
