Every driver in the United States is required to have car insurance. Like a lot of other everyday necessities, auto coverage can be very expensive and many consumers generally forget to continue to compare quotes instead of accepting the first cheap quote that comes in. That way, drivers have more of a chance of finding the best coverage at the cheapest rates.
In particular, policyholders should compare not only the premiums different companies quote based on information about the driver, but also different deductible limits, coverage options, types of discounts, and benefits offered by the carrier, such as free roadside assistance or “Accident Forgiveness”.
When drivers submit information about themselves to compare insurance quotes, they should be as honest as possible. The insurance premiums that are fed back to the customer will depend on factors such as the make and model of the car and the individual’s driving record, as well as credit history, location, age, and even occupation. People with safe driving habits and good to excellent credit scores will automatically receive lower premiums. This is because individuals with clean driving records who are financially-responsible are considered “low risk”.
In terms of vehicles, sports cars and luxury vehicles are the most expensive automobiles to insure as they’re associated with speed, recklessness and costly repairs. To get cheaper rates, switch to a more practical vehicle like a family car, van, or sedan with plenty of safety features, such as Anti-Lock brakes, an alarm system, and air bags.
Drivers who compare car insurance quotes from multiple insurers are more likely to find discounts. When you submit your vehicle information to get a free quote online from websites like MyCarInsurance123.com, the best companies will automatically help you find discounts you qualify for, as well as offer you the ability to adjust your coverage to see how it affects your rates.
The most common types of discounts include multi-policy, multi-car, low-mileage, customer loyalty and good student discounts. Some companies may offer other types such as the Snapshot Discount. This discount uses satellite technology to track certain driving habits of the customer and deducts up to 25% off the insurance based on what it finds.
Snapshot discounts, or usage-based insurance, tracks certain aspects of an individual’s driving habits and uses the information to issue a discount on the driver’s premiums. The insurer provides the driver with a device to install in the car. Once installed the device uses satellite technology to track miles driven, amount of hard brakes and time of day. The device is only compatible with car models 1996 and later.
Although the discount doesn’t appear in initial comparison quotes, it is applied after just 30 days. This discount on your auto rates can be as much as 25%, making this experiment worthwhile if you are looking to save hundreds of dollars a year.
Levels of Coverage
Consumers should always compare rates with protection in mind as well as price. It’s important to balance cheap car insurance with a sufficient level of coverage, ensuring your family and assets are safe during any tragedy. Drivers must also make sure their coverage level meets state requirements. Providing they meet the minimum requirements, they can choose whichever coverage option best suits both their budget and needs.
Liability coverage is the cheapest option because it’s the most basic, requiring your insurance company to payout to settle claims if you are at-fault in an auto accident. People who are willing to pay more for auto insurance often opt for comprehensive coverage, which protects drivers against most types of loss and damage.
Another way that consumers save money is to get car insurance quotes online for only the state minimum level of coverage. Though each state differs slightly, the average amount of coverage is usually $25,000 per person and $50,000 per accident for bodily injury liability, $10,000 for property damage liability and $50,000 for uninsured motorist coverage, though this can be waived if the consumer chooses.
Keep in mind that, while cost effective, this type of insurance is liability only and will only pay for damages incurred to the other vehicle and passengers up to the maximum amount listed. Anything more is the insured’s responsibility to pay out-of-pocket.
Deductibles, or excess payments, should also be near the forefront of a person’s mind when they compare auto insurance rates. The standard deductible is $500 and it’s up to the driver whether they want to go higher or lower than this. People who want cheaper rates often agree to pay a higher deductible, on average $1,000, as this means lower premiums.
However, a higher deductible also means drivers have to pay more out-of-pocket every time they submit an insurance claim. High deductibles are therefore most suited to individuals who want to save money and do not submit small claims.
Finding The Best Insurance Quotes
In order to find cheap insurance, consumers will need to compare quotes from several of the nation’s leading companies, including GEICO, Nationwide, Allstate, Progressive and more. Though it is perfectly acceptable to visit each company’s website and fill out the form over and over again, it is often quicker and simpler to use a quote comparison site that will search all of the major insurance companies and provide all of the results on the same page.
Then, the consumer can simply browse through all of their quotes online and choose the one that offers the level of coverage necessary at the rate that is most affordable. Potential policyholders can even choose different types of coverage and adjust liability limits to see how the amount of protection they buy will influence the cost.
It’s very unlikely that a driver will get the cheapest possible insurance rate unless they do their research on the different types of coverage and carriers available. Comparing car insurance quotes can not only lead to affordable prices, but can also give an individual a greater understanding of what options are best for him. Decisions about deductibles and types of coverage should be made only after receiving multiple quote comparisons online.