How to Know You're Throwing Money Away for Auto Insurance in Hebron

Are you tired of paying out the nose each month for car insurance? You're in the same situation as many other North Dakota drivers. With consumers having so many options when it comes to auto insurance, it can be challenging to locate the lowest price company.

It's important to compare prices before your policy renews because prices are constantly changing. If you had the best deal a few years ago a different company probably has better rates today. Starting right now, forget all the misinformation about auto insurance because you're going to get a crash course in the proper way to find lower rates on auto insurance.

Are you getting all your discounts?

Companies offering auto insurance don't list every available discount very well, so here is a list both well-publicized as well as the least known discounts you could be receiving. If you don't get every credit available, you are throwing money away.

  • Passive Restraint Discount - Vehicles with factory air bags can receive discounts up to 30%.
  • No Accidents - Claim-free drivers can earn big discounts compared to drivers who are more careless.
  • Service Members Pay Less - Being deployed with a military unit can result in better rates.
  • Good Students Pay Less - Performing well in school can earn a discount of 20% or more. The discount lasts up to age 25.
  • More Vehicles More Savings - Buying coverage for multiple cars or trucks on one policy may reduce the rate for each vehicle.

It's important to note that some credits don't apply to the entire cost. Most only cut individual premiums such as medical payments or collision. So even though it sounds like all the discounts add up to a free policy, you're out of luck.

North Dakota auto insurance

Good Decisions Result in Lower Rates

Smart consumers have a good feel for the factors that come into play when calculating the price you pay for auto insurance. When you know what positively or negatively influences your rates enables informed choices that can help you get much lower annual insurance costs.

  • Poor credit can mean higher rates - Your credit rating is a important factor in your rate calculation. Drivers who have good credit tend to be better drivers and file fewer claims than drivers with poor credit. If your credit history can use some improvement, you could potentially save money when insuring your by improving your rating.
  • Rates may be lower depending on your job - Occupations like doctors, social workers and stock brokers tend to have the highest rates because of high stress and long work days. On the other hand, occupations such as farmers, students and the unemployed receive lower rates.
  • Safe vehicles cost less to insure - Vehicles with high crash test scores get lower rates. Safer cars reduce injuries and lower injury rates translates into fewer and smaller insurance claims passed on to you as lower rates.
  • Careful drivers pay lower rates - Your driving record has a big impact on rates. Even a single speeding ticket can boost insurance rates twenty percent or more. Careful drivers have lower premiums than people who have multiple driving citations. Drivers who get severe violations such as reckless driving, hit and run or driving under the influence may be required to submit a SR-22 form with their state DMV in order to drive a vehicle legally.
  • Liability insurance protects assets - The liability section of your policy will protect you in the event that a court rules you are at fault for causing damage or personal injury in an accident. Liability provides legal defense coverage which can be incredibly expensive. Liability is cheap compared to insuring for physical damage coverage, so do not skimp.
  • Sex matters - The statistics show women tend to be less risk to insure than men. However, don't assume that men are worse drivers. Both sexes are in accidents at about the same rate, but men cause more damage and cost insurance companies more money. Men also get more serious tickets such as DWI and reckless driving.
  • Keep rates low by being claim-free - Insurance companies in North Dakota generally give discounts to drivers who are claim-free. If you are a frequent claim filer, you can look forward to higher rates. Your insurance policy is designed for major claims that would cause financial hardship.
  • Rural vs Urban Areas - Being located in small towns and rural areas has it's advantages when insuring your vehicles. Urban drivers tend to have congested traffic and longer commutes to work. Less people living in that area translates into fewer accidents and also fewer theft and vandalism claims.

How can State Farm and Allstate save drivers who switch?

North Dakota consumers get pounded daily by advertisements for the lowest price auto insurance by State Farm and Allstate. All the ads have a common claim that you can save if you move to their company.

But how can every company make almost identical claims?

Insurance companies can use profiling for the driver that earns them a profit. An example of a preferred risk could possibly be a mature driver, is a homeowner, and drives less than 7,500 miles a year. A customer getting a price quote that hits that "sweet spot" will qualify for the lowest rates and as a result will probably save a lot of money.

Potential customers who are not a match for this ideal profile will be charged a more expensive rate and this can result in the driver buying from a lower-cost company. The ad wording is "customers that switch" not "everybody who quotes" save that much. That's why insurance companies can advertise the way they do. That is why drivers should get as many quotes as possible. It's impossible to know the company that will provide you with the cheapest rates.

Learn more today

Additional detailed information is available at the North Dakota Insurance Department website. North Dakota consumers can find out industry alerts, read industry bulletins, find disaster information, and file complaints about a company.

Also read more on NAIC.org's Understanding your Policy and this directory of Hebron insurance agents.

In the end, you save

You just read a lot of ways to reduce auto insurance prices online. The key concept to understand is the more you quote, the better your comparison will be. You may be surprised to find that the best price on auto insurance is with some of the lesser-known companies. Regional companies often have lower prices on specific markets than the large multi-state companies such as .

Lower-priced auto insurance is possible online and also from your neighborhood Hebron agents, and you need to price shop both to have the best rate selection. Some auto insurance companies may not provide you the ability to get quotes online and many times these smaller companies only sell through independent insurance agents.