Do you think you bought an expensive car insurance policy? Trust us, there are lots of people in the same boat. Due to the fact that there are so many options when it comes to car insurance, it can be challenging to find the most cost effective company.
Smart consumers take time to take a look at other company’s rates on a regular basis because car insurance prices are usually higher with each renewal. Just because you had the best rate for 535xi coverage on your last policy the chances are good that you can find a lower premium rate today. Ignore everything you know about car insurance because you’re about to find out how to use online quotes to eliminate unnecessary coverages and save money.
Drivers can save with these money-saving discounts
Companies offering auto insurance don’t list their entire list of discounts in a way that’s easy to find, so the following is a list of both the well known and the harder-to-find discounts that you can inquire about if you . If you are not receiving all the discounts possible, you may be paying too high a price.
- Good Student – Maintaining excellent grades could provide a savings of up to 20% or more. Most companies allow this discount until age 25.
- Multi-Vehicle Discounts – Purchasing coverage when you have all your vehicles with the same company can get a discount for every vehicle.
- Clubs and Organizations – Joining qualifying employment or professional organizations could trigger savings on car insurance.
- Bundled Policy Discount – If you can bundle your homeowners and auto insurance and insure them both with the same insurance company you could save up to 20% and get you .
- Anti-theft System – Cars, trucks, and SUVs equipped with tracking devices and advanced anti-theft systems have a lower chance of being stolen and therefore earn up to a 10% discount.
- Homeowners Discount – Being a homeowner can help you save on car insurance because it requires personal responsibility.
- Payment Method – By paying your policy upfront as opposed to paying monthly you can actually save on your bill.
- Driver Education Discount – Teen drivers should participate in a local driver’s education class in school or through a local driver safety program.
While discounts sound great, it’s important to understand that most credits do not apply to the entire cost. Most cut individual premiums such as comp or med pay. Despite the fact that it seems like it’s possible to get free car insurance, it’s just not the way it works.
A few popular companies and the discounts they provide are outlined below.
- Progressive offers discounts for online quote discount, multi-vehicle, homeowner, continuous coverage, and multi-policy.
- SAFECO may include discounts for accident prevention training, multi-car, anti-theft, homeowner, and anti-lock brakes.
- American Family has discounts for TimeAway discount, good driver, multi-vehicle, early bird, bundled insurance, good student, and mySafetyValet.
- MetLife may offer discounts for defensive driver, accident-free, good driver, multi-policy, and good student.
- GEICO includes discounts for daytime running lights, defensive driver, multi-policy, military active duty, and five-year accident-free.
- The Hartford offers premium reductions for driver training, air bag, defensive driver, bundle, good student, and anti-theft.
Before you buy a policy, ask all the companies how many discounts you can get. Some of the earlier mentioned discounts may not apply to policies in your state. To locate companies who offer online car insurance quotes, click here.
Get Lower-cost Car Insurance with These Tips
Multiple criteria are considered when you quote your car insurance policy. Some are obvious such as traffic violations, but other factors are more obscure such as your marital status or your vehicle rating.
Shown below are some of the major factors car insurance companies consider when setting your rates.
- File a car insurance claims and pay more – Car insurance companies award cheaper rates to drivers who do not file claims often. If you frequently file small claims, you can look forward to either policy cancellation or increased premiums. Your insurance policy is intended to be relied upon for the large, substantial claims.
- Credit history impact car insurance premiums – An insured’s credit score can be an important factor in determining your rates. Therefore, if your credit history can use some improvement, you could potentially save money when insuring your BMW 535xi by spending a little time repairing your credit. People that have high credit scores tend to file fewer claims than those with poor credit scores.
- Lower rates for married couples – Getting married may cut your premiums on your policy. Having a spouse demonstrates that you tend to be less irresponsible and statistics prove drivers who are married are more cautious.
- Which gender costs less? – The statistics show women are more cautious behind the wheel. This data doesn’t prove that females are better drivers. Males and females tend to get into at-fault accidents at about the same rate, but the men have accidents that have higher claims. They also get more serious tickets like reckless driving and DUI.
- Add-on coverages could be costing you – There are a ton of extra add-on coverages you can purchase on your 535xi policy. Add-on coverages like coverage for rental cars, better glass coverage, and motor club memberships may be wasting your money. These may sound like a good investment at first, but if you have no use for them think about removing them and cutting costs.
- Lower stress equals lower premiums – Occupational choices like fire fighters, business owners and medical professionals usually pay higher rates than average attributed to high stress levels and incredibly demanding work hours. On the flip side, careers like farmers, students and homemakers get better rates for 535xi coverage.
- Liability insurance – The liability section of your policy will afford coverage if a court rules you are at fault for damages caused by your negligence. Your liability coverage provides for a legal defense starting from day one. Liability insurance is pretty cheap compared to other policy coverages, so buy as much as you can afford.
Are auto insurance agents obsolete?
Many people still like to get professional advice from a licensed agent and that is recommended in a lot of cases One of the great benefits of price shopping on the web is you can get cheap rate quotes and still have a local agent. Buying from and supporting local insurance agencies is important especially in small towns and cities.
To help locate an agent, after submitting this short form, the coverage information is instantly submitted to agents in your area that give free quotes for your business. It simplifies rate comparisons since you won’t have to do any legwork because prices are sent instantly to you. It’s the lowest rates and a licensed agent to work with. If for some reason you want to get a comparison quote from a specific company, don’t hesitate to navigate to their website and submit a quote form there.
If you wish to view insurance agents in your area, find an car insurance provider.
Choosing an insurance company needs to be determined by more than just the bottom line cost. These are valid questions to ask:
- What companies can they write with?
- How often do they review policy coverages?
- What are the financial ratings for the companies they represent?
- Do they assist clients in filing claims?
- Does the agent have a valid license to sell insurance in your state?
After getting positive feedback to any questions you have as well as offering an affordable quote, you may have just found an provider that can be relied on to insure your vehicles.
Advertising myths
Car insurance providers like State Farm, GEICO and Progressive constantly bombard you with ads in print and on television. They all make the point about savings if you switch your policy. How does each company lower your prices? Just pay attention to how they say it.
Different companies offer their best rates for the type of driver they prefer to insure. For instance, a profitable risk profile may need to be between 30 and 50, has no prior claims, and drives a safe vehicle. A customer getting a price quote who matches that profile will get very good prices as well as cut their rates substantially.
Insureds who do not match the ideal profile will have to pay more expensive rates which results in the customer not buying. The ads say “customers who switch” not “everyone that quotes” save that much when switching. That’s why companies can make claims that they all have the best rates.
This really illustrates why it is so important to compare as many as you can. Because you never know which car insurance company will have the lowest rates.
A little work can save a LOT of money
Cheaper car insurance can be found from both online companies in addition to many insurance agents, and you need to price shop both to get a complete price analysis. Some insurance companies may not have internet price quotes and usually these smaller providers only sell coverage through independent agents.
When trying to cut insurance costs, never skimp on critical coverages to save a buck or two. There are many occasions where an accident victim reduced liability coverage limits and learned later that the small savings ended up costing them much more. Your goal should be to buy enough coverage for the lowest price, but do not sacrifice coverage to save money.
