Top Ways to Save on Parma Auto Insurance

Scraping up a payment for overpriced auto insurance can dwindle your personal savings and make it hard to pay other bills. Doing a price comparison is free and is an excellent way to help make ends meet.

Because you have many online and local companies to choose from, it can be diffult for consumers to find the best insurance company.

It's important to take a look at other company's rates quite often since insurance rates are constantly changing. Even if you got the best rates last year you can probably find a better price now. You can find a lot of misleading information regarding auto insurance on the internet, so I'm going to show you some great ways to quit paying high auto insurance rates.

Choosing the best insurance company for you in Parma is easy if you know what you're doing. Essentially anyone who is required by state law to have auto insurance will most likely be able to lower their premiums. But Michigan vehicle owners do need to know the way insurance companies price online insurance.

Parma Rates are Influenced by These Factors

Consumers need to have an understanding of the rating factors that go into determining auto insurance rates. When you know what positively or negatively controls the rates you pay enables informed choices that may reward you with better auto insurance rates.

Your location affects your rates - Residing in a small town can be a good thing when buying auto insurance. Drivers in populated areas regularly have much more traffic and longer commute times. Less people living in that area translates into fewer accidents and a lower car theft rate.
With age comes lower rates - Teenage drivers in Michigan are statistically proven to be more careless when driving so auto insurance rates are higher. Having to add a teenage driver to your auto insurance policy can really hurt. More mature drivers are viewed as being more responsible, tend to cause fewer accidents and tend to be better behind the wheel.
Credit scores impact auto insurance rates - Credit score is a important factor in determining what you pay for auto insurance. Therefore, if your credit is lower than you'd like, you could save money insuring your by improving your rating. Drivers who have high credit scores tend to be better drivers and file fewer claims as compared to drivers with poor credit.
Multiple policies with one company can save - Most auto insurance companies will give a discount to people who buy several policies from them, otherwise known as a multi-policy discount. Even though this discount sounds good, you still need to comparison shop to ensure the best deal.
Lower rates with optional equipment - Purchasing a vehicle with an alarm system can help lower your rates. Anti-theft features such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping your vehicle from being stolen.

Don't pay full price with these discounts

Companies don't always list all their discounts very well, so the following is a list of some of the best known as well as the least known ways to save on auto insurance.

Auto/Life Discount - Select insurance companies reward you with a break if you buy life insurance from them.
College Student - Any of your kids living away from home attending college and do not have a car may be able to be covered for less.
Braking Control Discount - Vehicles equipped with ABS or steering control are safer to drive and qualify for as much as a 10% discount.
Anti-theft System - Vehicles equipped with anti-theft or alarm systems are stolen less frequently and will save you 10% or more.
Payment Discounts - If paying your policy premium upfront instead of making monthly payments you may reduce your total bill.
Senior Discount - If you're over the age of 55, you may qualify for better auto insurance rates.
No Accidents - Drivers who don't have accidents pay less as compared to accident-prone drivers.
Sign Online - Some insurance companies give back up to $50 for buying a policy and signing up online.
Drive Less and Save - Driving fewer miles could qualify for better rates on cars that stay parked.
Own a Home - Owning a house in Parma may earn you a small savings because owning a home demonstrates responsibility.

Drivers should understand that many deductions do not apply to the overall cost of the policy. Most cut individual premiums such as collision or personal injury protection. So even though they make it sound like you would end up receiving a 100% discount, companies wouldn't make money that way.

To choose companies offering auto insurance discounts in Michigan, click this link.

The auto insurance bait and switch

Auto insurance companies such as GEICO, State Farm and Progressive constantly bombard you with ads in print and on television. They all seem to make the same claim that you'll save big if you switch to their company. But how can every company say the same thing?

Different companies have a preferred profile for the driver that makes them money. A good example of a desirable insured might be profiled as a mature driver, insures multiple vehicles, and drives newer vehicles. A propective insured who matches those parameters gets the lowest rates and therefore will save a lot of money.

Potential insureds who don't measure up to this ideal profile will have to pay more money which leads to business not being written. The ads say "customers that switch" not "everyone that quotes" save that much. This is how companies can claim big savings. Because of the profiling, you should compare many company's rates. It's not possible to predict which insurance companies will give you the biggest savings.

Your personal situation dictates your coverage

When buying coverage for your personal vehicles, there really is no one size fits all plan. Everyone's needs are different so this has to be addressed. Here are some questions about coverages that may help you determine whether or not you would benefit from professional advice.

When does my teenage driver need to be added to my policy?
What are Michigan no-fault laws?
Can I get a multi-policy discount for packaging my home and auto coverage?
Am I covered when renting a car or should I buy coverage from the car rental agency?
What can I do if my company won't pay a claim?
Should I put collision coverage on all my vehicles?
Will I be non-renewed for getting a DUI or other conviction?
Does my personal policy cover me when driving my company car?

If it's difficult to answer those questions then you might want to talk to a licensed insurance agent. If you don't have a local agent, take a second and complete this form or you can go here for a list of companies in your area.

More detailed Michigan auto insurance information can be read at the Michigan Office of Financial and Insurance Regulation website. Michigan drivers can view agent and company licensing information, read enforcement actions against agents and companies, find out industry alerts, and read consumer alerts.

Other informative sites include Wikipedia and this page where you can research Parma insurance agents.

Shop smart and save

When trying to cut insurance costs, do not buy poor coverage just to save money. In many instances, drivers have reduced full coverage and found out when filing a claim that it was a big mistake. The ultimate goal is to purchase plenty of coverage at a price you can afford.

Budget-conscious auto insurance can be found on the web and also from your neighborhood Parma agents, and you need to price shop both in order to have the best chance of saving money. A few companies may not provide online price quotes and most of the time these small insurance companies sell through independent agents.