How to Know You're Spending Too Much for Auto Insurance in Decorah

Having to pay for overpriced auto insurance can take a big chunk out of your personal savings and make it hard to pay other bills. Comparing price quotes is a great way to help make ends meet.

Popular companies such as State Farm, Allstate, GEICO and Progressive constantly blast consumers with advertising and consumers find it hard to sift through the bull and effectively compare rates to find the best deal.

It's important to compare prices yearly because prices are constantly changing. Even if you got the best deal a couple years back you can probably find a better price now. Starting right now, ignore everything you know about auto insurance because you're going to get a crash course in the proper way to find lower rates on auto insurance.

If you have car insurance now, you will be able to save some money using these techniques. Choosing the best insurance company for you in Decorah is quite easy. Nevertheless, Iowa consumers do need to know how companies price online insurance and take advantage of how the system works.

Good Decisions Result in Lower Rates

Consumers need to have an understanding of the factors that go into determining the rates you pay for auto insurance. Having a good understanding of what determines base rates enables informed choices that can help you get lower auto insurance prices.

Listed below are some of the factors auto insurance companies consider when setting your rates.

Cautious drivers pay less - Careful drivers have lower premiums than bad drivers. Even a single citation can boost insurance rates by as much as thirty percent. Drivers who get serious violations such as reckless driving, hit and run or driving under the influence may be required to file a proof of financial responsibility form (SR-22) to the state department of motor vehicles in order to continue driving.
Where you live is a factor - Residing in a rural area has it's advantages when talking about auto insurance. Less people living in that area translates into fewer accidents and also fewer theft and vandalism claims. City drivers have congested traffic and a longer drive to work. More time commuting translates into higher accident risk.
One company can mean more discounts - Most insurance companies give discounts to insureds who buy several policies from them such as combining an auto and homeowners policy. Discounts can be 10 percent or more. If you currently are using one company, you still need to comparison shop to ensure the best deal.
Optional equipment can affect rates - Purchasing a vehicle with an alarm system can help bring down rates. Anti-theft features like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping auto theft.
Being married is a good thing - Being married can actually save you money on auto insurance. Marriage means you're more mature and responsible and it's proven that married drivers get in fewer accidents.

More discounts equal less premium

Car insurance can cost a lot, but you can get discounts that many people don't even know exist. Some trigger automatically when you purchase, but some must be asked about before being credited.

Good Student Discount - This discount can get you a discount of up to 25%. The discount lasts until age 25.
Multi-policy Discount - If you insure your home and vehicles with the same insurance company you could get a discount of up to 20% off your total premium.
Anti-theft Discount - Vehicles with anti-theft systems help deter theft and will save you 10% or more.
Payment Discounts - By paying your policy upfront instead of making monthly payments you may reduce your total bill.
E-sign - Certain companies may give you up to $50 simply for signing digitally online.
Low Mileage - Driving fewer miles can qualify you for a substantially lower rate.
Defensive Driver - Completing a defensive driving course could cut 5% off your bill if your company offers it.
Save with a New Car - Putting insurance coverage on a new car can cost up to 25% less since new cars are generally safer.

Consumers should know that some of the credits will not apply to your bottom line cost. Most cut individual premiums such as medical payments or collision. Just because you may think you can get free auto insurance, companies don't profit that way. Any qualifying discounts will reduce your premiums.

To choose providers offering auto insurance discounts in Decorah, click here.

Switch companies and save? Really?

Companies like State Farm and Allstate constantly bombard you with ads in print and on television. All the ads have a common claim of big savings if you switch to their company. How can each company claim to save you money?

All companies have a preferred profile for the driver that makes them money. An example of a preferred risk might be between 25 and 40, has no prior claims, and drives less than 10,000 miles a year. A customer getting a price quote that hits that "sweet spot" gets the lowest rates and therefore will save when they switch companies.

Consumers who do not match the requirements will be charged higher prices and this can result in the customer not buying. The ads say "customers that switch" not "everyone that quotes" save that much. This is how insurance companies can confidently advertise the way they do.

That is why you should compare many company's rates. It's impossible to know which insurance companies will provide you with the cheapest rates.

It's not one size fits all

When buying proper insurance coverage for your personal vehicles, there really is not a perfect coverage plan. Everyone's needs are different and your policy should reflect that. Here are some questions about coverages that can help discover if you would benefit from an agent's advice.

Should I buy only the required Iowa minimum liability coverage?
What is the difference between comprehensive and collision 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?
Does my liability insurance cover pulling a trailer or camper?
Does my personal policy cover me when driving my company car?
Is my dog or cat covered if injured in an accident?

If you can't answer these questions but you think they might apply to your situation, then you may want to think about talking to a licensed insurance agent. If you don't have a local agent, simply complete this short form or click here for a list of auto insurance companies in your area.

Additional auto insurance information is available on the website for the Iowa Insurance Division located here. Visitors are able to file complaints about a company, view agent and company licensing information, read consumer alerts, and view a list of available companies.

Do the work, save more money

We covered a lot of techniques to save on auto insurance. The key thing to remember is the more you quote, the higher the chance of saving money. Consumers may even find the most savings is with a small local company. Some small companies may often insure only within specific states and give getter rates as compared to the big name companies such as .

As you go through the steps to switch your coverage, it's not a good idea to buy poor coverage just to save money. There have been many cases where consumers will sacrifice liability limits or collision coverage only to find out that the savings was not a smart move. Your goal should be to purchase plenty of coverage at a price you can afford, not the least amount of coverage.