How to Know You're Spending Too Much for Car Insurance in New Madison

Expensive car insurance can empty your personal savings, especially in this economy. Shopping your coverage around is a great way to lower your monthly bill.

Insurance companies such as GEICO and Progressive constantly bombard you with fancy advertisements and consumers find it hard to sift through the bull and effectively compare rates to find the best deal.

It's important to price shop coverage on a regular basis because rates are constantly changing. Just because you had the lowest rates a few years ago a different company probably has better rates today. So ignore everything you know about car insurance because you're going to learn the tricks you need to know to lower your annual insurance bill.

Be sure to get all your discounts

Companies don't always advertise every available discount in a way that's easy to find, so we break down some of the more common and also the lesser-known discounts you could be receiving.

  • Anti-theft Discount - Vehicles with anti-theft systems help deter theft and earn discounts up to 10%.
  • Accident Waiver - A handful of insurance companies allow you one accident before your rates go up if you are claim-free prior to the accident.
  • Passive Restraints - Vehicles with factory air bags or automatic seat belts can qualify for discounts up to 30%.
  • Government Employees - Active or retired federal employment can save as much as 8% with certain companies.
  • Payment Discounts - By paying your policy upfront instead of monthly or quarterly installments you could save 5% or more.

It's important to note that some of the credits will not apply to all coverage premiums. Some only apply to specific coverage prices like comprehensive or collision. So when the math indicates you can get free auto insurance, you're out of luck.

New Madison car insurance quote

Learn How to Buy Car Insurance Cheaper

Smart consumers have a good feel for the factors that go into determining your car insurance rates. Having a good understanding of what influences your rates helps enable you to make changes that can help you get lower car insurance prices.

Listed below are a few of the "ingredients" that factor into your rates.

  • Consolidate policies to earn discounts - Most insurance companies give discounts to policyholders who have multiple policies with them such as combining an auto and homeowners policy. This can amount to 10 percent or more. Even with this discount, it's still a good idea to compare other company rates to confirm you are receiving the best rates possible.
  • Are you male or female? - Statistics have proven women are more cautious behind the wheel. That doesn't necessarily mean that men are WORSE drivers than women. Women and men have accidents in similar percentages, but men cause more damage. Men also get more serious tickets such as reckless driving. Young males are the most expensive to insure and therefore are the most expensive to insure.
  • Better credit scores mean better rates - Your credit score is a big factor in determining what you pay for car insurance. If your credit rating is lower than you'd like, you could potentially save money when insuring your by improving your credit score. Consumers who have good credit tend to be less risk to insure than those with poor credit.
  • Too many car insurance claims drive up costs - If you tend to file frequent claims, you can expect either a policy non-renewal or much higher rates. Insurance companies in Ohio generally give cheaper rates to drivers who do not rely on their insurance for small claims. Auto insurance is meant to be used in the event of the bigger claims that can't be paid out-of-pocket.
  • Special features that cut premiums - Purchasing a vehicle with a theft deterrent system can help bring down rates. Anti-theft features such as vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems all aid in stopping auto theft.
  • How's your driving record? - Drivers with clean records get better rates than bad drivers. Even a single speeding ticket may increase your cost by as much as thirty percent. Drivers who get serious violations like hit and run, DWI or reckless driving convictions may be required to submit a SR-22 or proof of financial responsibility with their state motor vehicle department in order to continue driving.

Is there truth in advertising?

Companies like Allstate and Progressive constantly bombard you with television and radio advertisements. All the ads have a common claim that you can save if you switch your policy. How can each company make the same claim? It's all in the numbers.

All companies have a preferred profile for the right customer that earns them a profit. For example, a preferred risk could be over the age of 40, insures multiple vehicles, and drives less than 7,500 miles a year. A customer that hits that "sweet spot" will qualify for the lowest rates and is almost guaranteed to save when they switch companies.

Potential customers who don't measure up to the requirements will be charged a higher premium and this can result in business going elsewhere. The ad wording is "customers who switch" but not "drivers who get quotes" save that kind of money. This is how insurance companies can advertise the way they do. That is why drivers should get a wide range of price quotes. Because you never know which insurance companies will provide you with the cheapest rates.

Additional detailed information can be found at the Ohio Department of Insurance website. Consumers can read consumer alerts, learn about insurance regulations, find out industry alerts, and download brochures.

Final considerations

When shopping online for car insurance, it's a bad idea to skimp on coverage in order to save money. Too many times, drivers have reduced uninsured motorist or liability limits only to regret that a couple dollars of savings turned into a financial nightmare. The aim is to get the best coverage possible at the best price, not the least amount of coverage.

Lower-priced car insurance is available from both online companies in addition to many New Madison insurance agents, and you need to comparison shop both to have the best rate selection. Some car insurance companies do not provide you the ability to get quotes online and many times these regional insurance providers only sell through independent insurance agents.

We just showed you a lot of techniques to reduce car insurance prices online. The key thing to remember is the more quotes you get, the more likely it is that you will get a better rate. Consumers may even find the lowest premiums are with some of the smallest insurance companies. Regional companies often have lower prices on specific markets compared to the large companies like .