How to Know You're Wasting Money for Auto Insurance in Economy
Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Believe me when I say there are a lot of people in Economy just like you who feel imprisoned by their auto insurance policy.
With so many insurance companies to choose from, it can be hard to locate the lowest cost car insurance company.
It's important to price shop coverage at least once a year because prices are constantly changing. If you had the lowest rates a few years ago you will most likely find a better rate today. Starting now, block out anything you think you know about auto insurance because you're going to get a crash course in the tricks you need to know to lower your annual insurance bill.
The purpose of this article is to tell you how to get online quotes and some money-saving tips. If you currently have car insurance, you will most likely be able to lower your premiums substantially using this information. Although Indiana drivers do need to know the way companies market on the web and use this information to your advantage.
How much can you save with discounts?
The price of auto insurance can be rather high, buy you may qualify for discounts that can drop the cost substantially. Certain discounts will be applied when you complete an application, but lesser-known reductions have to be manually applied before they will apply.
- Life Insurance - Companies who offer life insurance give a break if you buy life insurance from them.
- Military Discounts - Being on active duty in the military can result in better rates.
- Federal Government Employee - Active or retired federal employment can earn a discount up to 10% with select insurance companies.
- Anti-theft System - Cars that have factory anti-theft systems are stolen less frequently and therefore earn up to a 10% discount.
- Clubs and Organizations - Participating in a professional or civic organization is a good way to get lower rates on auto insurance.
- Pay Upfront and Save - If you pay your entire premium ahead of time instead of monthly or quarterly installments you could save 5% or more.
- Driver's Ed - Make teen driver coverage more affordable by requiring them to complete a driver education course in high school.
A little note about advertised discounts, most discount credits are not given the the whole policy. Most only reduce the price of certain insurance coverages like collision or personal injury protection. Just because it seems like you would end up receiving a 100% discount, you won't be that lucky. Any amount of discount will help reduce the amount you have to pay.
Save 15 percent in 15 minutes? Is it for real?
Auto insurance companies such as GEICO, State Farm and Progressive regularly use television and radio advertisements. They all seem to make an identical promise about savings if you move your policy. But how can every company make almost identical claims? This is how they do it.
Different companies are able to cherry pick for the right customer that earns them a profit. For example, a desirable insured could possibly be between the ages of 30 and 50, has no tickets, and has a short commute. A customer getting a price quote who meets those qualifications will get the preferred rates and is almost guaranteed to save a lot of money.
Consumers who don't meet this ideal profile will have to pay higher rates and ends up with the driver buying from a lower-cost company. The ads state "drivers who switch" but not "drivers who get quotes" save that kind of money. That's the way companies can truthfully make the claims of big savings.
Because of the profiling, you should compare as many rates as you can. It's impossible to know which auto insurance company will fit your personal profile best.
Additional information can be found on the website for the Indiana Department of Insurance. Click here for link. Indiana consumers can file complaints about an insurance agent or broker, find disaster information, download brochures, and read consumer alerts.
Also read more on Auto Insurance 101 and this page where you can research Economy insurance agents.
The best insurance company isn't always the cheapest
As you shop your coverage around, do not buy lower coverage limits just to save a few bucks. In many instances, an insured dropped uninsured motorist or liability limits only to regret that saving that couple of dollars actually costed them tens of thousands. The ultimate goal is to get the best coverage possible for the lowest price.
The cheapest auto insurance is definitely available online in addition to many Economy insurance agents, and you should compare price quotes from both to get a complete price analysis. Some insurance providers do not provide you the ability to get quotes online and most of the time these regional insurance providers sell through independent agents.
