How to Know You're Paying Too Much for Auto Insurance in Ashdown

No one in their right mind likes having to buy auto insurance, particularly when they are paying too much.

You have multiple to pick from, and though it is a good thing to have a choice, having more makes it harder to compare rates.

Choosing the best insurance company for you in Ashdown is easy if you know what you're doing. If you currently have a car insurance policy, you should be able to cut costs considerably using these techniques. But Arkansas consumers do need to know the methods companies use to price online insurance because it can help you find the best coverage.

Auto Insurance Comparison Rates in Ashdown, AR

Most major insurance companies like State Farm, Allstate and GEICO give pricing on their websites. This process is pretty easy as you simply type in your personal and coverage information into the quote form. Behind the scenes, the system will obtain your driving and credit reports and returns a price quote based on these factors. This makes comparing rates easy, but the time required to go to different websites and complete many quote forms is monotonous and tiresome. Unfortunately, it is important to perform this step in order to get a lower rate.

A less time-consuming method to compare rates uses one form that gets prices from several different companies. It's a real time-saver, eliminates repetitive work, and makes rate comparisons much more enjoyable. After sending your information, your coverage is rated and you can choose any one of the returned quotes. If a lower price is quoted, you can simply submit the application and purchase coverage. This process can be completed in a matter of minutes and you will know how your current rates stack up.

To find out how much you're overpaying now, click here and input your coverage information. If you have coverage now, it's recommended you type in the coverage information just like they are on your policy. This way, you will have an apples-to-apples comparison based on similar coverages.

Why some people pay less for insurance in Ashdown

It's important that you understand the rating factors that go into determining the rates you pay for auto insurance. Knowing what controls the rates you pay allows you to make educated decisions that will entitle you to much lower annual insurance costs.

Listed below are a partial list of the pieces companies use to determine prices.

Safer cars cost less to insure - Vehicles with high crash test scores tend to have better insurance rates. The safest vehicles result in less severe injuries and any reduction in injury severity means less money paid by your insurance company and thus lower rates.
Cautious drivers pay less - Good drivers have lower premiums than bad drivers. Only having one ticket can increase rates twenty percent or more. If you have serious violations like DWI, reckless driving or hit and run convictions may find they need to file a proof of financial responsibility form (SR-22) to the state department of motor vehicles in order to continue driving.
Your credit rating is important - Having a bad credit score is a important factor in determining your rates. Therefore, if your credit score is lower than you'd like, you could be paying less to insure your by spending a little time repairing your credit. Drivers with high credit scores tend to file fewer claims and have better driving records as compared to drivers with poor credit.
Proper usage rating affects rates - The more miles you rack up on your car each year the higher your rate. Most companies charge to insure your cars based on how the vehicle is used. Autos used primarily for pleasure use receive lower rates as compared to vehicles used primarily for driving to work. Double check that your auto insurance policy shows how each vehicle is driven, because improper ratings can cost you money.

More discounts equal less premium

Companies offering auto insurance don't always advertise every discount very clearly, so we researched both the well known as well as the least known ways to save on auto insurance.

Military Rewards - Having a family member in the military could mean lower rates.
Early Signing - Some insurance companies reward drivers for buying a policy before your current policy expires. This can save 10% or more.
Braking Control Discount - Vehicles with anti-lock braking systems are safer to drive and qualify for as much as a 10% discount.
Auto/Life Discount - Select insurance companies reward you with a discount if you purchase life insurance.
Accident Forgiveness - Certain companies will forgive one accident without raising rates if your claims history is clear for a set time period.
Multiple Policy Discount - When you have multiple policies with the same insurance company you may earn at least 10% off all policies.
Accident Free - Good drivers with no accidents pay much less when compared to frequent claim filers.
Good Student - Getting good grades can earn a discount of 20% or more. Earning this discount can benefit you until age 25.
Low Mileage Discounts - Driving fewer miles could be rewarded with better rates on cars that stay parked.
Payment Discounts - If paying your policy premium upfront rather than paying monthly you can actually save on your bill.

Drivers should understand that most discount credits are not given to the entire policy premium. Most only apply to individual premiums such as liability and collision coverage. Just because it seems like adding up those discounts means a free policy, companies wouldn't make money that way.

For a list of insurance companies offering auto insurance discounts in Arkansas, click this link.

It's not one size fits all

When it comes to choosing the best auto insurance coverage for your vehicles, there isn't really a perfect coverage plan. Everyone's situation is a little different so this has to be addressed. Here are some questions about coverages that may help highlight if you could use an agent's help.

Do I have coverage when using my vehicle for my home business?
Does my car insurance cover rental cars?
Can I get a multi-policy discount for packaging my home and auto coverage?
What are the financial responsibility laws in Arkansas?
Does my policy cover me when driving someone else's vehicle?
Am I covered when driving in Canada or Mexico?

If it's difficult to answer those questions but you think they might apply to your situation, you may need to chat with an agent. To find an agent in your area, take a second and complete this form or you can also visit this page to select a carrier

More detailed Arkansas auto insurance information is located at the Arkansas Insurance Department website. Visitors are able to find disaster information, file complaints about a company, find out industry alerts, and file complaints about an insurance agent or broker.

Other useful links include this page for auto insurance prices in Arkansas and this page of Ashdown insurance agents.

Shop smart and save

We covered some good ideas how to lower your auto insurance rates. The key thing to remember is the more providers you compare, the more likely it is that you will get a better rate. You may even discover the lowest premiums are with some of the lesser-known companies. Smaller companies may only write in your state and offer lower rates as compared to the big name companies such as .

As you prepare to switch companies, make sure you don't reduce needed coverages to save money. There have been many situations where someone dropped collision coverage and learned later that the small savings ended up costing them much more. The proper strategy is to buy enough coverage at a price you can afford while still protecting your assets.