How to Know You're Wasting Money for Auto Insurance in Kiron

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Believe me when I say you're not the only one.

Companies like State Farm, Allstate, GEICO and Progressive increase brand awareness with catchy ads and consumers find it hard to sift through the bull and take the time to shop coverage around.

It's important to compare prices at least once a year because prices are constantly changing. Even if you got the best rates a few years ago you will most likely find a better rate today. There is a lot of bad advice regarding auto insurance on the web, but I'm going to show you some great ways to put money back in your pocket.

Don't pay full price with these discounts

Companies do not list all their discounts in a way that's easy to find, so the following is a list of both well-publicized and also the lesser-known savings tricks you should be using.

Life Insurance - Some companies give better rates if you take out auto and life insurance together.
Driver Safety - Taking part in a course in driver safety could possibly earn you a 5% discount if you qualify.
Discount for New Cars - Insuring a new car is cheaper due to better safety requirements for new cars.
Payment Method - If you pay your entire premium ahead of time instead of monthly or quarterly installments you could save up to 5%.
Clubs and Organizations - Participating in a civic or occupational organization is a good way to get lower rates on auto insurance.

Keep in mind that most discount credits are not given the the whole policy. Most only reduce specific coverage prices like collision or personal injury protection. So when it seems like all those discounts means the company will pay you, it just doesn't work that way.

The auto insurance bait and switch

Auto insurance companies such as GEICO, State Farm and Progressive continually stream ads in print and on television. They all seem to make an identical promise that you can save after switching your coverage to them. How can each company make almost identical claims? It's all in the numbers.

All the different companies are able to cherry pick for the type of customer that earns them a profit. A good example of a desirable insured could possibly be between 25 and 40, has no tickets, and has a short commute. A customer getting a price quote who meets those qualifications will get the preferred rates and therefore will save when they switch companies.

Potential customers who don't measure up to the requirements will have to pay higher prices and ends up with the driver buying from a lower-cost company. The ads state "customers who switch" not "everyone that quotes" save that much money. That's the way insurance companies can make the claims of big savings. Because of the profiling, you should get a wide range of price quotes. It's impossible to know which auto insurance company will fit your personal profile best.

Find out more about auto insurance

Additional detailed information can be read at the Iowa Insurance Division website. Iowa consumers can file complaints about an insurance agent or broker, discover disciplinary actions, view a list of available companies, and find out which companies have the most complaints.

Shop smart and save

As you shop your coverage around, it's not a good idea to buy lower coverage limits just to save a few bucks. In many instances, an insured dropped full coverage and found out when filing a claim that saving that couple of dollars actually costed them tens of thousands. The ultimate goal is to get the best coverage possible at the best price.

Affordable auto insurance can be purchased online as well as from independent agents in Kiron, so you should compare both so you have a total pricing picture. Some insurance providers don't offer you the ability to get quotes online and most of the time these small insurance companies sell through independent agents.