How to Know You're Wasting Money for Auto Insurance in Dillon

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Believe me when I say there are a lot of people in Dillon just like you who feel imprisoned by their auto insurance policy.

Online insurance companies like GEICO and Progressive increase brand awareness with ad campaigns and it is challenging if not impossible to sift through the bull and take the time to shop coverage around.

Policy discounts you shouldn't miss

Companies offering auto insurance don't always advertise every discount in a way that's easy to find, so we researched both well-publicized and the harder-to-find discounts you could be receiving.

Pay Now and Pay Less - By paying your policy upfront instead of monthly or quarterly installments you may reduce your total bill.
Clubs and Organizations - Participating in a civic or occupational organization may earn a discount when shopping for auto insurance.
No Accidents - Drivers with accident-free driving histories pay much less when compared to drivers who are more careless.
Life Insurance Discount - Companies who offer life insurance give better rates if you take out auto and life insurance together.
Low Mileage Discounts - Low mileage vehicles could be rewarded with a substantially lower rate.
Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to successfully complete driver's ed class if offered at their school.

As a disclaimer on discounts, some credits don't apply to all coverage premiums. Most only apply to the price of certain insurance coverages like liability and collision coverage. So when it seems like having all the discounts means you get insurance for free, auto insurance companies aren't that generous.

You have some control over your rates

Smart consumers have a good feel for the factors that play a part in calculating the price you pay for auto insurance. Having a good understanding of what impacts premium levels enables informed choices that will entitle you to big savings.

Shown below are a partial list of the pieces auto insurance companies consider when setting prices.

Equipment add-ons that lower auto insurance rates - Choosing a vehicle with anti-theft technology or alarm system can help bring down rates. Theft prevention devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can thwart auto theft.
Liability coverage protects you - Your policy's liability coverage provides coverage when a court rules you are at fault for causing damage or personal injury in an accident. It provides legal defense which can cost thousands of dollars. Liability insurance is quite affordable as compared to coverage for physical damage, so do not skimp.
Do you work long hours in a high stress job? - Careers like judges, social workers and dentists tend to have the highest average rates in part from high stress levels and lots of time spent at work. Other occupations like actors, historians and retirees receive lower rates.
Drive less and save money - The higher the mileage driven in a year the higher your rate. Most insurance companies apply a rate based upon how you use the vehicle. Cars not used for work or commuting receive lower rates compared to those used for work or business. Ask your agent if your auto insurance declarations sheet is rated on the correct usage for each vehicle, because improper ratings can cost you money.
Higher safety ratings means cheaper insurance - Vehicles with good safety scores get lower rates. The safest vehicles reduce injuries and lower injury rates means lower claim amounts and more competitive rates for policyholders.
More claims means more premium - Companies in Colorado generally give cheaper rates to insureds who are claim-free. If you file claims often, you can pretty much guarantee either policy cancellation or increased premiums. Insurance coverage is designed for the large, substantial claims.

Save $429 a year? Really?

Auto insurance providers like State Farm, Allstate and GEICO consistently run television and radio advertisements. They all have a common claim about savings if you change to their company. How can each company make almost identical claims? This is how they do it.

All the different companies are able to cherry pick for the driver that earns them a profit. For instance, a driver they prefer could possibly be between the ages of 30 and 50, has no driving citations, and has great credit. A customer getting a price quote that hits that "sweet spot" is entitled to the best price and is almost guaranteed to save when they switch companies.

Potential customers who don't qualify for the requirements will be quoted a more expensive rate and this can result in the driver buying from a lower-cost company. The ads state "drivers who switch" but not "drivers who get quotes" save that much. That's the way companies can truthfully advertise the savings. This emphasizes why drivers should get a wide range of price quotes. It's impossible to know which auto insurance company will fit your personal profile best.

Learn more about Colorado auto insurance

Even more information is located at the Colorado DORA Division of Insurance website. Colorado consumers can view a list of available companies, find out which companies have the most complaints, read industry bulletins, and file complaints about an insurance agent or broker.

Do the work, save more money

Cheap auto insurance can be sourced online and also from your neighborhood Dillon agents, and you should compare price quotes from both to have the best rate selection. There are still a few companies who may not provide you the ability to get quotes online and these small, regional companies work with independent agents.

When you buy insurance online, it's a bad idea to skimp on coverage in order to save money. There have been many situations where someone sacrificed liability coverage limits only to discover later that the few dollars in savings costed them thousands. The proper strategy is to buy a smart amount of coverage for the lowest price while still protecting your assets.