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

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Trust us, you are not the only one feeling buyer's remorse.

There is such a variety of to buy insurance from, and although it's nice to have multiple companies, so many choices can make it hard to compare rates.

Choosing the best insurance company for you in Cherokee is easy if you know what you're doing. If you currently have car insurance, you should be able to lower your premiums substantially using these techniques. But Iowa drivers do need to know the way companies compete online and apply this information to your search.

Don't pay full price with these discounts

Companies that sell car insurance don't list all available discounts very clearly, so we took the time to find both well-publicized as well as the least known ways to save on auto insurance.

Clubs and Organizations - Participating in a qualifying organization could trigger savings when buying auto insurance.
Multiple Vehicles - Having multiple vehicles on one policy may reduce the rate for each vehicle.
Student in College - Any of your kids who attend school more than 100 miles from home and do not have access to a covered vehicle may be able to be covered for less.
Save over 55 - If you qualify as a senior citizen, you may be able to get a discount up to 10%.
Military Discounts - Having a family member in the military may qualify for rate reductions.
Seat Belts Save more than Lives - Using a seat belt and requiring all passengers to use their safety belts can save 10% or more off your PIP or medical payments premium.
No Claims - Drivers with accident-free driving histories can save substantially when compared with drivers who are more careless.
Drivers Education - Make teen driver coverage more affordable by requiring them to enroll in driver's education if it's offered in school.
Federal Government Employee - Active or retired federal employment can earn a discount up to 10% depending on your company.
Discount for New Cars - Adding a new car to your policy is cheaper compared to insuring an older model.

Drivers should understand that many deductions do not apply to all coverage premiums. The majority will only reduce individual premiums such as physical damage coverage or medical payments. So despite the fact that it appears you would end up receiving a 100% discount, companies wouldn't make money that way.

Understand what determines the rate you pay

Smart consumers have a good feel for the rating factors that help determine the price you pay for auto insurance. Knowing what controls the rates you pay helps enable you to make changes that could result in better auto insurance rates.

The following are a few of the "ingredients" that factor into premiums.

Don't sacrifice liability coverage - Liability coverage provides coverage if a court rules you are at fault for damages caused by your negligence. Liability insurance provides for a legal defense up to the limits shown on your policy. Carrying liability coverage is mandatory and cheap when compared with rates for comp and collision, so drivers should carry high limits.
Do you know your deductibles? - Physical damage deductibles represent how much money you are required to spend if you file a covered claim. Coverage for physical damage, otherwise known as comp (or other than collision) and collision, insures against damage to your car. Some examples of claims that would be covered could be colliding with a building, damage caused by hail, and burglary. The higher the amount the insured has to pay upfront, the less your auto insurance will be.
Older drivers pay less - Teen drivers in Iowa are known to get distracted easily when behind the wheel so they pay higher auto insurance rates. Older insureds are more responsible, tend to cause fewer accidents and tend to be better behind the wheel.
Men pay higher rates - Statistics demonstrate that women are safer drivers than men. However, this does not mean men are WORSE drivers than women. Men and women cause accidents in similar percentages, but the male of the species have costlier accidents. Men also tend to have more aggressive citations such as DWI and reckless driving. Teenage male drivers are most likely to cause an accident and therefore are the most expensive to insure.
Better crash test results mean better rates - Safer cars tend to have better insurance rates. Safe vehicles have better occupant injury protection and lower injury rates means lower claim amounts and thus lower rates.
Never let your coverage lapse - Allowing your auto insurance policy to lapse will be a fast way to trigger a rate increase. And not only will insurance be more expensive, but being ticketed for driving with no insurance can result in a hefty fine and possibly a revoked license.You may then be required to submit proof of financial responsibility or a SR-22 with the Iowa DMV.

The auto insurance bait and switch

Allstate, GEICO and Progressive continually stream ads in print and on television. All the companies make the same claim that you'll save big after switching your policy. How does each company make almost identical claims?

Different companies are able to cherry pick for the right customer that earns them a profit. For example, a profitable customer could possibly be between the ages of 30 and 50, has no driving citations, and chooses high deductibles. A driver who matches those parameters gets the lowest rates and therefore will save when switching.

Potential insureds who don't measure up to these standards must pay more money which leads to the driver buying from a lower-cost company. Company advertisements say "customers that switch" not "everyone that quotes" save that kind of money. That's the way companies can state the savings. This illustrates why drivers should get quotes from several different companies. It is impossible to predict which auto insurance company will give you the biggest savings.

More detailed Iowa auto insurance information can be found at the Iowa Insurance Division website. Iowa consumers can find out which companies have the most complaints, report car insurance fraud, read enforcement actions against agents and companies, and learn about insurance regulations.

Shop smart and save

Budget-conscious auto insurance can be bought online in addition to many Cherokee insurance agents, and you should compare price quotes from both to have the best chance of lowering rates. Some insurance companies do not provide you the ability to get quotes online and usually these regional insurance providers provide coverage only through local independent agents.

When buying insurance coverage, it's very important that you do not skimp on coverage in order to save money. In too many instances, someone sacrificed physical damage coverage only to discover later that their decision to reduce coverage ended up costing them more. Your focus should be to buy the best coverage you can find at a price you can afford while not skimping on critical coverages.