Compare Farmington Auto Insurance Prices With These Tips

Are you intimidated by the dozens of auto insurance companies in Farmington? Lot's of other consumers are too. There are so many options available that it can turn into a challenge to find better rates.

What determines how much you pay?

Consumers need to have an understanding of the rating factors that play a part in calculating auto insurance rates. When you know what positively or negatively impacts premium levels allows you to make educated decisions that could result in lower auto insurance prices.

Shown below are a partial list of the pieces companies use to determine premiums.

  • Higher safety ratings means cheaper insurance - Cars with high safety ratings tend to have better insurance rates. Safe vehicles result in less severe injuries and better occupant protection means lower claim amounts passed on to you as lower rates.
  • Liability coverage protects you - Your policy's liability coverage provides coverage if a jury decides you are liable for damages from an accident. Liability insurance provides legal defense starting from day one. Carrying liability coverage is mandatory and cheap as compared to coverage for physical damage, so drivers should carry high limits.
  • Do you know your deductibles? - Physical damage deductibles represent how much money you are willing to pay out-of-pocket in the event of a claim. Physical damage insurance, otherwise known as comp (or other than collision) and collision, is used to repair damage to your car. Examples of covered claims are colliding with a building, damage from fire, and rolling your vehicle. The more you're willing to pay, the less your auto insurance will be.
  • Better credit means lower rates - A driver's credit score is a important factor in calculating your auto insurance rates. Drivers with excellent credit tend to file fewer claims and have better driving records than drivers who have lower ratings. Therefore, if your credit is low, you could save money insuring your by improving your rating.
  • Frequent auto insurance claims increase rates - Auto insurance companies in Arkansas give discounts to insureds who file claims infrequently. If you frequently file small claims, you can pretty much guarantee either policy cancellation or increased premiums. Auto insurance is intended to be relied upon for the large, substantial claims.
  • A clean driving record saves money - Whether or not you get tickets has a big impact on rates. Only having one citation can increase rates forty percent or more. Good drivers have lower premiums than their less careful counterparts. Drivers with dangerous tickets like DWI, reckless driving or hit and run convictions are required to file a proof of financial responsibility form (SR-22) with the DMV in their state in order to prevent a license revocation.

auto insurance in Farmington

Don't pay full price with these discounts

Insurance can be prohibitively expensive, but there are discounts available that you may not know about. Most are applied at quote time, but a few must be manually applied in order for you to get them. If you don't get every credit possible, you are paying more than you should be.

  • Fewer Miles Equal More Savings - Low mileage vehicles could be rewarded with better rates on cars that stay parked.
  • Organization Discounts - Affiliation with a professional or civic organization could trigger savings when buying auto insurance.
  • Homeowners Discount - Owning a home in Farmington may earn you a small savings because maintaining a house shows financial diligence.
  • Passive Restraint Discount - Vehicles equipped with air bags and/or automatic seat belt systems can receive discounts of 20% or more.
  • Federal Government Employee - Employees or retirees of the government can save as much as 8% depending on your company.
  • Discount for Good Grades - This discount can get you a discount of up to 25%. Earning this discount can benefit you up until you turn 25.

As a disclaimer on discounts, most discount credits are not given to all coverage premiums. Most only apply to individual premiums such as liability and collision coverage. So when the math indicates all the discounts add up to a free policy, auto insurance companies aren't that generous. Any amount of discount will help reduce your premiums.

To choose insurers with discount auto insurance rates in Arkansas, click this link.

The auto insurance bait and switch

Arkansas drivers can't ignore all the ads that promise big savings by companies like 21st Century, Allstate and State Farm. All the companies make the same claim about savings if you change to them.

But how can every company say the same thing?

All companies are able to cherry pick for the type of driver that makes them money. For instance, a profitable customer might be profiled as over the age of 40, has no driving citations, and drives less than 7,500 miles a year. A propective insured who matches those parameters is entitled to the best price and therefore will save a lot of money.

Potential insureds who don't measure up to this ideal profile must pay more money which leads to business not being written. The ads state "customers that switch" not "everyone that quotes" save money. That's the way companies can truthfully advertise the way they do.

This illustrates why you should get quotes from several different companies. It's not possible to predict which auto insurance company will provide you with the cheapest rates.

Learn more about Arkansas auto insurance

Additional information is located on the Arkansas Insurance Department website located here. Arkansas drivers can find disaster information, find out which companies have the most complaints, and report car insurance fraud.

Other informative sites include this resource for Arkansas auto insurance prices and this page of Farmington insurance agents.

A tidy conclusion

Cheap auto insurance can be sourced on the web and with local Farmington insurance agents, and you need to comparison shop both in order to have the best chance of saving money. Some auto insurance companies do not offer online price quotes and usually these small, regional companies provide coverage only through local independent agents.

Throughout this article, we presented some good ideas how to save on auto insurance. It's most important to understand that the more companies you get rates for, the more likely it is that you will get a better rate. You may be surprised to find that the lowest premiums are with some of the lesser-known companies.

When shopping online for auto insurance, don't be tempted to buy poor coverage just to save money. There are a lot of situations where someone sacrificed collision coverage and learned later that a couple dollars of savings turned into a financial nightmare. The proper strategy is to buy a smart amount of coverage at a price you can afford while not skimping on critical coverages.