I can’t think of a single person who likes paying for car insurance, especially knowing the cost is too high.
Because you have many insurance companies to choose from, it is hard for the average consumer to locate the right insurer.
You should take the time to compare rates periodically because rates are adjusted regularly by insurance companies. Despite the fact that you may have had the lowest rates for Typhoon coverage a few years ago other companies may now be cheaper. So forget anything you know (or think you know) about car insurance because you’re going to get a crash course in one of the easiest ways to remove unneeded coverages and save money.
Pay less by taking advantage of these six discounts
Auto insurance companies don’t always publicize every discount in a way that’s easy to find, so we researched both well-publicized and the more hidden discounts you could be receiving.
- Save with a New Car – Putting insurance coverage on a new car is cheaper since new cars are generally safer.
- Anti-lock Brake Discount – Anti-lock brake equipped vehicles are safer to drive and therefore earn up to a 10% discount.
- More Vehicles More Savings – Buying insurance for multiple cars or trucks on one policy can get a discount on all vehicles.
- Service Members Pay Less – Being on active duty in the military may qualify for rate reductions.
- Drive Less and Save – Keeping the miles down on your GMC can qualify you for lower rates on the low mileage vehicles.
- Pay Now and Pay Less – If paying your policy premium upfront instead of making monthly payments you may reduce your total bill.
A little note about advertised discounts, most discounts do not apply to the entire cost. Most only reduce individual premiums such as liability, collision or medical payments. So when the math indicates having all the discounts means you get insurance for free, it doesn’t quite work that way.
Your coverage should be tailored to you
When choosing proper insurance coverage for your vehicles, there isn’t really a “perfect” insurance plan. Each situation is unique and your policy should reflect that. These are some specific questions can aid in determining whether your personal situation will benefit from professional help.
- Are rental cars covered under my policy?
- Which companies will insure high-risk drivers?
- Does coverage extend to a rental car in a foreign country?
- Is borrowed equipment or tools covered if stolen or damaged?
- Do I get a pro-rated refund if I cancel my policy early?
- What is the minimum liability in my state?
- What discounts do I qualify for?
- Does my policy cover me when driving someone else’s vehicle?
- What vehicles should carry emergency assistance coverage?
If you’re not sure about those questions, you may need to chat with a licensed insurance agent. If you don’t have a local agent, complete this form or you can go here for a list of companies in your area.
How can State Farm, Allstate and GEICO save drivers who switch?
Companies like State Farm, Allstate and GEICO regularly use ads on TV and radio. All the ads say the same thing that you’ll save big if you move to their company. But how can every company claim to save you money?
All companies have a preferred profile for the type of driver that earns them a profit. For instance, a desirable insured might be profiled as between the ages of 40 and 55, has no prior claims, and drives less than 7,500 miles a year. A customer getting a price quote who meets those qualifications will qualify for the lowest rates and most likely will save when switching.
Potential insureds who don’t qualify for the “perfect” profile will have to pay a higher premium which leads to business going elsewhere. Company advertisements say “customers that switch” but not “drivers who get quotes” save that much. That’s why companies can truthfully advertise the savings. Because of the profiling, it is so important to get as many comparisons as possible. It’s impossible to know which insurance companies will give you the biggest savings.
Specifics of your car insurance policy
Knowing the specifics of a car insurance policy can be of help when determining which coverages you need for your vehicles. Car insurance terms can be difficult to understand and coverage can change by endorsement. These are typical coverages found on the average car insurance policy.
Med pay and Personal Injury Protection (PIP)
Med pay and PIP coverage provide coverage for expenses such as dental work, surgery, EMT expenses and funeral costs. They can be used to cover expenses not covered by your health insurance policy or if there is no health insurance coverage. It covers all vehicle occupants in addition to if you are hit as a while walking down the street. PIP is not an option in every state and may carry a deductible
Uninsured/Underinsured Motorist (UM/UIM)
This protects you and your vehicle when other motorists either have no liability insurance or not enough. This coverage pays for medical payments for you and your occupants and also any damage incurred to your GMC Typhoon.
Due to the fact that many drivers have only the minimum liability required by law, it doesn’t take a major accident to exceed their coverage limits. So UM/UIM coverage should not be overlooked.
Comprehensive insurance
Comprehensive insurance will pay to fix damage OTHER than collision with another vehicle or object. You first must pay your deductible and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive can pay for things such as damage from flooding, theft, a broken windshield and hitting a deer. The highest amount you can receive from a comprehensive claim is the actual cash value, so if your deductible is as high as the vehicle’s value it’s not worth carrying full coverage.
Liability coverages
Liability coverage will cover damage that occurs to other people or property. Liability coverage has three limits: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. As an example, you may have policy limits of 100/300/100 which stand for a limit of $100,000 per injured person, a total of $300,000 of bodily injury coverage per accident, and a limit of $100,000 paid for damaged property.
Liability insurance covers things like loss of income, medical services and bail bonds. How much liability coverage do you need? That is your choice, but it’s cheap coverage so purchase as large an amount as possible.
Collision protection
This coverage will pay to fix damage to your Typhoon resulting from a collision with another vehicle or an object, but not an animal. You first must pay a deductible and then insurance will cover the remainder.
Collision coverage protects against claims such as colliding with a tree, crashing into a ditch, damaging your car on a curb, hitting a parking meter and backing into a parked car. Collision coverage makes up a good portion of your premium, so analyze the benefit of dropping coverage from vehicles that are older. Drivers also have the option to choose a higher deductible in order to get cheaper collision rates.
The best insurance company isn’t always the cheapest
We covered many ways to shop for GMC Typhoon insurance online. It’s most important to understand that the more companies you get rates for, the better likelihood of reducing your rate. You may be surprised to find that the best prices are with the smaller companies. Regional companies can often provide lower rates in certain areas compared to the large companies like State Farm or Progressive.
As you restructure your insurance plan, do not skimp on coverage in order to save money. In many cases, drivers have reduced full coverage to discover at claim time that the small savings ended up costing them much more. Your aim should be to buy the best coverage you can find at an affordable rate, not the least amount of coverage.
