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

Expensive auto insurance can dwindle your savings account and put a big crunch on your finances. Shopping your coverage around is a smart way to cut your insurance bill. Insurance companies such as State Farm, Allstate, GEICO and Progressive all claim big savings with fancy advertisements and it is difficult to sift through the bull and find the best price available.

It's important to get comparison quotes yearly since insurance rates are constantly changing. Despite the fact that you may have had the best deal a few years ago a different company probably has better rates today. So ignore everything you know about auto insurance because it's time to teach you the proper way to save on auto insurance.

How much can you save with discounts?

The cost of insuring your cars can be expensive, but companies offer discounts to cut the cost considerably. A few discounts will automatically apply at quote time, but some must be manually applied in order for you to get them. If you aren't receiving every discount you deserve, you are throwing money away.

College Student - Children who live away from home and do not have access to a covered vehicle can receive lower rates.
Discount for Life Insurance - Some companies give better rates if you take out life insurance from them.
Senior Discount - If you qualify as a senior citizen, you may be able to get a discount up to 10%.
Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to complete a driver education course if it's offered in school.
Government Employees - Active or retired federal employment can earn a discount up to 10% with select insurance companies.

It's important to note that most credits do not apply to your bottom line cost. Some only apply to specific coverage prices like liability, collision or medical payments. Just because it seems like you could get a free auto insurance policy, you're out of luck. But any discount will reduce the amount you have to pay.

Understand what determines the rate you pay

Smart consumers have a good feel for some of the elements that help determine auto insurance rates. Having a good understanding of what influences your rates helps enable you to make changes that may reward you with better auto insurance rates.

Older drivers pay less - More mature drivers are viewed as being more responsible, tend to cause fewer accidents and are safer drivers. Teenage drivers are known to be less responsible when driving and because of this, their auto insurance rates are much higher.
Rural vs Urban Areas - Residing in a small town can be a good thing when buying auto insurance. Fewer people means reduced accidents and also fewer theft and vandalism claims. City drivers tend to have much more traffic to deal with and longer commutes to work. Longer commute distances means higher likelihood of an accident.
Men pay higher rates - Statistics have proven women are more cautious behind the wheel. However, this does not mean men are WORSE drivers than women. Men and women have accidents at about the same rate, but the males have costlier accidents. They also get cited for more serious violations like reckless driving and DUI. Young males are the most expensive to insure and therefore are the most expensive to insure.
Small claims can cost you - Car insurance companies in California provide cheaper rates to drivers who do not rely on their insurance for small claims. If you file claims often, you can look forward to either a policy non-renewal or much higher rates. Car insurance is intended to be relied upon for the bigger claims that can't be paid out-of-pocket.
Your auto insurance rates can be influenced by your job - Did you know your auto insurance rates can be affected by your occupation? Jobs such as doctors, architects and dentists are shown to have the highest average rates due to high stress and long work hours. Other occupations like pilots, historians and performers pay the least.

How much car insurance do I need?

When it comes to buying proper insurance coverage for your personal vehicles, there really is not a one size fits all plan. Your needs are not the same as everyone else's and a cookie cutter policy won't apply. For example, these questions can help discover if your insurance needs might need professional guidance.

Do I pay less if my vehicle is kept in my garage?
When does my teenage driver need to be added to my policy?
Should I buy additional glass protection?
Is my cargo covered for damage or theft?
Why am I required to get a high-risk car insurance policy?
Am I covered if I drive in a foreign country?
Do I need PIP (personal injury protection) coverage in California?

If you don't know the answers to these questions, then you may want to think about talking to a licensed agent. If you want to speak to an agent in your area, complete this form or you can go here for a list of companies in your area. It's fast, doesn't cost anything and you can get the answers you need.

Save 15 percent in 15 minutes? Is it for real?

California drivers get pounded daily by advertisements for car insurance savings from companies such as Progressive, GEICO, Allstate and State Farm. They all seem to say the same thing that you can save after switching your policy.

How can each company say the same thing? It's all in the numbers.

Different companies have a preferred profile for the right customer that earns them a profit. An example of a desirable insured might be profiled as between 30 and 50, has no prior claims, and drives less than 7,500 miles a year. A propective insured who fits that profile will qualify for the lowest rates and is almost guaranteed to save when they switch companies.

Potential insureds who don't meet the requirements will have to pay more money which usually ends up with business not being written. The ad wording is "customers who switch" but not "drivers who get quotes" save that kind of money. This is how insurance companies can advertise the way they do.

Because of the profiling, drivers should get quotes from several different companies. It's not possible to predict which insurance companies will provide you with the cheapest rates.

More information is available on the website for the California Department of Insurance found here. California drivers can read enforcement actions against agents and companies, view agent and company licensing information, learn about insurance regulations, and download brochures.

A tidy conclusion

When shopping online for auto insurance, it's not a good idea to skimp on coverage in order to save money. There are many occasions where consumers will sacrifice liability limits or collision coverage only to find out that a couple dollars of savings turned into a financial nightmare. Your aim should be to get the best coverage possible at the best price.

In this article, we covered a lot of information how to reduce auto insurance prices online. The most important thing to understand is the more times you quote, the more likely it is that you will get a better rate. Consumers could even find that the best prices are with a small mutual company. Regional companies often have lower prices on specific markets compared to the large companies like .