Tightwads Guide to Saving on Hereford Auto Insurance

I can't think of a single person who likes having to buy auto insurance, especially knowing the cost is too high. Because you have many online and local companies to choose from, it can be diffult for consumers to pick the most affordable provider.

Choosing the best insurance company for you in Hereford is quite easy. If you have a current auto insurance policy or are shopping for new coverage, you can follow these tips to get lower rates while maximizing coverage. Maryland drivers only need an understanding of the tricks to find the lowest price over the internet.

Don't pay full price with these discounts

Companies offering auto insurance don't always list all available discounts very well, so the following is a list of some of the best known and the more hidden discounts you could be receiving. If you don't get every credit you qualify for, you're paying more than you need to.

Homeowners Savings - Owning a home in Hereford can save you money due to the fact that maintaining a home demonstrates responsibility.
Good Student - A discount for being a good student can save 20 to 25%. The good student discount can last well after school through age 25.
Auto/Home Discount - When you combine your home and auto insurance with the same insurance company you may earn 10% to 20% off each policy.
Federal Employees - Being employed by or retired from a federal job can earn a discount up to 10% depending on your company.
Anti-theft System - Vehicles with anti-theft systems are stolen less frequently and qualify for as much as a 10% discount.
Fewer Miles Equal More Savings - Fewer annual miles could qualify for a substantially lower rate.
Paperless Signup - Some insurance companies give back up to $50 simply for signing online.
Driver Safety - Taking a course teaching defensive driving skills can save you 5% or more and easily recoup the cost of the course.

Consumers should know that some credits don't apply to the entire policy premium. Some only reduce the cost of specific coverages such as physical damage coverage or medical payments. So even though it sounds like you could get a free auto insurance policy, companies don't profit that way.

To see a list of insurers who offer auto insurance discounts in Maryland, click here.

Vehicle Insurance Comparison

Effectively comparing auto insurance prices can be a lot of work if you aren't aware of the most efficient way. You can waste a lot of time talking about coverages with local insurance agents in Hereford, or you can utilize the internet to get the quickest rates.

Many insurance companies take part in a program that enables customers to submit their information once, and every company returns a rated price based on that data. This prevents consumers from doing quote requests to each individual auto insurance company.

To submit your quote information now, click to open in new window.

The one disadvantage to using this type of form is you don't know exactly which carriers you want pricing from. So if you prefer to choose individual companies to receive pricing from, we have a listing of low cost auto insurance companies in Maryland. Click to view list.

Whichever method you choose, be sure to compare apples-to-apples information for every company. If you have higher or lower deductibles it will be next to impossible to decipher which rate is best in Hereford.

Why some people pay less for insurance in Hereford

An important part of buying insurance is that you know the factors that help determine auto insurance rates. When you know what positively or negatively determines base rates allows you to make educated decisions that could result in better auto insurance rates.

What are your deductibles? - The deductibles represent how much money you are required to spend in the event of a claim. Insurance for physical damage to your car, also known as collision and other-than-collision, covers damage that occurs to your car. Examples of covered claims are colliding with a building, damage caused by hail, and rolling your vehicle. The more expense you're willing to pay, the lower your rates will be.
A clean driving record saves money - Only having one ticket can increase rates twenty percent or more. Good drivers receive lower rates compared to drivers with tickets. Drivers with flagrant tickets such as 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 keep their license.
Where you live is a factor - Living in a small town is a positive aspect when buying auto insurance. Urban drivers have more traffic problems and a longer drive to work. Fewer drivers means fewer accidents and a lower car theft rate.
How many coverages with the same company - Many insurance companies will award you with lower prices to people who buy several policies from them, otherwise known as a multi-policy discount. If you currently are using one company, you may still want to compare rates to make sure you are getting the best deal.

Your personal situation dictates your coverage

When choosing coverage for your vehicles, there really is no single plan that fits everyone. Each situation is unique and your policy should reflect that. Here are some questions about coverages that may help highlight whether or not you may require specific advice.

When do I need to add a new car to my policy?
Should I buy only the required Maryland minimum liability coverage?
What is the difference between comprehensive and collision coverage?
Am I covered when driving in Canada or Mexico?
Am I covered if I drive in a foreign country?
Can I get a multi-policy discount for packaging my home and auto coverage?

If you can't answer these questions then you might want to talk to an agent. If you don't have a local agent, simply complete this short form or go to this page to view a list of companies. It only takes a few minutes and can provide invaluable advice.

The auto insurance bait and switch

Maryland drivers can't get away from ads for cheaper car insurance by companies like Allstate, GEICO and Progressive. All the companies have a common claim of big savings after switching to them.

But how can every company say the same thing?

Different companies have a certain "appetite" for the type of driver that is profitable for them. A good example of a profitable customer might be profiled as over the age of 50, a clean driving record, and has excellent credit. A propective insured that hits that "sweet spot" will get very good rates and therefore will save a lot of money.

Potential insureds who don't measure up to this ideal profile must pay more money and this can result in business not being written. The ads say "people who switch" not "everyone that quotes" save money. That is how insurance companies can confidently make those claims. This illustrates why drivers must get a wide range of price quotes. It's not possible to predict which company will have the lowest rates.

Best coverage at the best price

Cost effective auto insurance can be purchased on the web and with local Hereford insurance agents, and you should be comparing both in order to have the best chance of saving money. Some companies do not offer the ability to get a quote online and usually these small insurance companies provide coverage only through local independent agents.

Throughout this article, we presented a lot of ways to compare auto insurance prices online. The most important thing to understand is the more rate comparisons you have, the better your comparison will be. You may even discover the biggest savings come from a company that doesn't do a lot of advertising. These smaller insurers may often insure only within specific states and give getter rates as compared to the big name companies such as .

While you're price shopping online, do not reduce coverage to reduce premium. In too many instances, someone dropped full coverage and found out when filing a claim they didn't purchase enough coverage. Your focus should be to find the BEST coverage at an affordable rate while not skimping on critical coverages.

More tips and info about auto insurance can be read at the Maryland Insurance Administration website. Maryland drivers can report car insurance fraud, file complaints about a company, view agent and company licensing information, and read consumer alerts.

Additional helpful sites include this page for Maryland auto insurance and this page for help finding agents in Hereford, MD.