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

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Believe me, many Throop consumers feel financially strained by their auto insurance policy.

You have multiple to pick from, and although it's nice to have multiple companies, having more makes it harder to compare rates.

It's important to do rate comparisons every six months because prices are constantly changing. Even if you got the best price six months ago a different company probably has better rates today. Forget anything you know (or think you know) about auto insurance because we're going to demonstrate the only way to find the best coverage while lowering your premiums.

Be sure to get all your discounts

Car insurance is not cheap, but you may find discounts that many people don't even know exist. Larger premium reductions will be automatically applied when you quote, but less common discounts must be requested specifically prior to getting the savings.

Anti-theft Discount - Anti-theft and alarm systems prevent vehicle theft and therefore earn up to a 10% discount.
Multi-car Discount - Buying insurance for more than one vehicle on one policy qualifies for this discount.
Anti-lock Brake Discount - Cars that have steering control and anti-lock brakes are safer to drive and will save you 10% or more.
Discount for Life Insurance - Some companies give a discount if you purchase a life insurance policy as well.
Clubs and Organizations - Participating in a qualifying organization could qualify you for a break on your policy.

Keep in mind that most credits do not apply to all coverage premiums. Most cut the price of certain insurance coverages like comprehensive or collision. So even though it sounds like you can get free auto insurance, it just doesn't work that way. But any discount will bring down the amount you have to pay.

Why some people pay less for insurance in Throop

Smart consumers have a good feel for some of the elements that go into determining the price you pay for auto insurance. Knowing what influences your rates allows you to make educated decisions that can help you get lower auto insurance prices.

Do you qualify for a multi-policy discount? - Most companies give discounts to customers who have multiple policies with them in the form of a multi-policy discount. Even with this discount, it's in your best interest to compare other company rates to make sure you are getting the best deal. You may still be able to find a better deal by splitting coverages up.
Do you know your deductibles? - Coverage for physical damage, otherwise known as comp (or other than collision) and collision, protects your car from damage. Examples of covered claims could be running into the backend of another car, damage caused by hail, or theft. Your deductibles are the amount of money you are willing to pay if you file a covered claim. The higher the amount you're willing to pay, the less your auto insurance will be.
Your credit rating is important - Your credit score is a huge factor in calculating your auto insurance rates. If your credit history is lower than you'd like, you could potentially save money when insuring your by spending a little time repairing your credit. Drivers with high credit ratings tend to file fewer claims and have better driving records than those with poor credit.
Lower miles equals lower premium - The more miles you rack up on your car in a year the higher your rates will be. Most companies apply a rate based on their usage. Vehicles left parked in the garage qualify for better rates compared to those used for work or business. Make sure your auto insurance policy shows how each vehicle is driven.
Do you have enough liability coverage? - Liability insurance provides coverage in the event that a court rules you are at fault for damages from an accident. It provides for a legal defense starting from day one. Liability is cheap compared to physical damage coverage, so buy as much as you can afford.
Your job and insurance rates - Did you know that where you work can have an impact on rates? Occupations like lawyers, architects and financial analysts tend to pay higher average rates in part from high stress and lengthy work days. Conversely, occupations like actors, engineers and homemakers have the lowest average rates.

Is there truth in advertising?

Companies like Allstate and Progressive constantly bombard you with television and radio advertisements. All the ads say the same thing that you can save if you switch to them. How does each company make almost identical claims? This is how they do it.

All companies are able to cherry pick for the type of driver that earns them a profit. For example, a preferred risk could possibly be a mature driver, has no driving citations, and has a high credit rating. A customer getting a price quote who fits that profile gets the lowest rates and is almost guaranteed to save when switching.

Potential customers who don't measure up to these standards will be charged a higher premium which usually ends up with the driver buying from a lower-cost company. The ads say "drivers who switch" but not "drivers who get quotes" save money. That's the way insurance companies can state the savings.

That is why drivers should get as many comparisons as possible. It's impossible to know which auto insurance company will have the lowest rates.

More information can be found on the website for the Pennsylvania Insurance Department. Click here for link. Pennsylvania consumers can read consumer alerts, report car insurance fraud, find out industry alerts, and file complaints about an insurance agent or broker.

Also read more on BankRate.com's Car Insurance: When not to Skimp and this Throop agent directory.

The best insurance company isn't always the cheapest

As you restructure your insurance plan, make sure you don't skimp on coverage in order to save money. Too many times, someone sacrificed physical damage coverage only to discover later that they should have had better coverage. The aim is to purchase plenty of coverage for the lowest price, not the least amount of coverage.

Affordable auto insurance can be found online and with local Throop insurance agents, and you need to price shop both to have the best rate selection. Some insurance companies do not offer you the ability to get quotes online and many times these regional insurance providers only sell through independent insurance agents.