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

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Believe me when I say there are many Wilmington consumers feeling the pinch from expensive auto insurance. Since consumers have many companies and agents to choose from, it's nearly impossible to locate the best company.

This information will help educate you on how to effectively get price quotes. If you currently have a car insurance policy, you will most likely be able to lower your premiums substantially using these techniques. Vermont drivers only need an understanding of how to shop their coverage around online.

More discounts equal less premium

Properly insuring your vehicles can get expensive, but you can get discounts that many people don't even know exist. Most are applied when you quote, but less common discounts must be asked about prior to getting the savings. If you don't get every credit possible, you are throwing money away.

No Accidents - Drivers with accident-free driving histories can save substantially when compared to drivers who are more careless.
Multi-car Discount - Having more than one vehicle on one policy could earn a price break for each car.
Anti-lock Brake System - Cars that have steering control and anti-lock brakes are safer to drive and qualify for as much as a 10% discount.
Discount for Good Grades - Performing well in school can earn a discount of 20% or more. This discount can apply until age 25.
Distant Student - Kids in college who attend school more than 100 miles from home and do not have a car may be able to be covered for less.
Driver's Ed - Make teen driver coverage more affordable by requiring them to successfully complete driver's ed class in school.
Clubs and Organizations - Participating in a professional or civic organization is a good way to get lower rates when shopping for auto insurance.
Low Mileage Discounts - Driving fewer miles can earn discounted rates on garaged vehicles.

Consumers should know that most discounts do not apply to all coverage premiums. Most only reduce the cost of specific coverages such as comp or med pay. Just because you may think adding up those discounts means a free policy, companies don't profit that way. Any qualifying discounts will help reduce your premiums.

Wilmington Rates are Influenced by These Factors

Smart consumers have a good feel for the different types of things that go into determining the price you pay for auto insurance. When you know what positively or negatively determines base rates enables informed choices that will entitle you to much lower annual insurance costs.

Listed below are a few of the "ingredients" auto insurance companies consider when setting prices.

Your job and insurance rates - Did you know that where you work can have an impact on rates? Careers like lawyers, business owners and stock brokers tend to have the highest rates attributed to job stress and long work days. On the other hand, jobs such as actors, students and homemakers receive lower rates.
Do you know your deductibles? - Deductibles for physical damage define the amount you are willing to pay in the event of a claim. Coverage for physical damage, otherwise known as comp (or other than collision) and collision, covers damage that occurs to your car. Some instances where coverage would apply could be running into the backend of another car, collision with an animal, and burglary. The higher the amount you are required to pay out-of-pocket, the less your auto insurance will be.
Credit scores impact auto insurance rates - Having a bad credit score is a large factor in calculating your auto insurance rates. Therefore, if your credit history is lower than you'd like, you could potentially save money when insuring your by improving your rating. Drivers who have excellent credit tend to be better drivers and file fewer claims than drivers with poor credit.
Careful drivers pay lower rates - A bad driving record has a big impact on rates. Even one moving violation can boost insurance rates by twenty percent. Careful drivers receive lower rates than bad drivers. If you have serious violations like reckless driving, hit and run or driving under the influence may find they need to file a proof of financial responsibility form (SR-22) with their state DMV in order to continue driving.
Older drivers pay less - Teen drivers in Vermont are statistically proven to be careless and easily distracted when behind the wheel so auto insurance rates are higher. Older insureds are more cautious drivers, statistically cause fewer accidents and tend to be better behind the wheel.
Claim-free discounts can add up - Companies in Vermont award discounts to policyholders who are claim-free. If you frequently file small claims, you can expect either higher rates or even cancellation. Your insurance policy is designed for the large, substantial claims.

Switch companies and save? Really?

Vermont consumers get pounded daily by advertisements that promise big savings by Progressive, Allstate and GEICO. They all make an identical promise of big savings if you switch to their company.

But how can every company make almost identical claims?

Insurance companies are able to cherry pick for the driver that earns them a profit. For example, a driver they prefer could possibly be over the age of 40, has no driving citations, and drives less than 10,000 miles a year. A customer getting a price quote who meets those qualifications will get the preferred rates and therefore will save a lot of money.

Potential customers who do not match this ideal profile will be quoted a higher premium and ends up with the driver buying from a lower-cost company. The ads state "people who switch" not "everyone that quotes" save that much. That's the way insurance companies can confidently advertise the way they do.

This emphasizes why drivers should get a wide range of price quotes. It's impossible to know which auto insurance company will provide you with the cheapest rates.

Learn more about Vermont auto insurance

Additional auto insurance information can be found on the website for the Vermont Department of Financial Regulation through this link. Vermont consumers can read industry bulletins, report car insurance fraud, find out industry alerts, and file complaints about a company.

Also read more on this online resource for auto insurance quotes in Vermont and this list of insurance agents in Wilmington.

And the best car insurance company is...

Cost effective auto insurance can be found online and also from your neighborhood Wilmington agents, and you need to comparison shop both to have the best rate selection. Some auto insurance companies may not provide you the ability to get quotes online and these regional insurance providers work with independent agents.

As you go through the steps to switch your coverage, don't be tempted to skimp on coverage in order to save money. There are too many instances where someone sacrificed physical damage coverage only to discover later that the savings was not a smart move. Your strategy should be to get the best coverage possible at an affordable rate while still protecting your assets.