Proven Ways to Save on Melbourne Auto Insurance

Tired of paying out the nose each month for car insurance? Your situation is no different than many other drivers in Iowa.

Consumers have many to buy insurance from, and even though it's nice to have a selection, it can be more difficult to compare rates.

It's important to compare rates before your policy renews because prices are constantly changing. Even if you got the best deal six months ago the chances are good that you can find a lower rate today. Starting now, forget all the misinformation about auto insurance because you're going to get a crash course in the only way to properly buy coverages and cut your premium.

Be sure to get all your discounts

Car insurance can cost a lot, but there could be available discounts to reduce the price significantly. Larger premium reductions will be automatically applied when you complete an application, but lesser-known reductions have to be requested specifically before they will apply.

Passive Restraints - Vehicles with factory air bags may earn rate discounts up to 30%.
Employee of Federal Government - Being employed by or retired from a federal job may qualify you for a discount with certain companies.
Life Insurance Discount - Some companies give a discount if you purchase auto and life insurance together.
E-sign - A handful of insurance companies may give you up to $50 just for signing your application over the internet.
One Accident Forgiven - Certain companies allow you one accident before raising your premiums if you are claim-free for a particular time prior to the accident.

Keep in mind that some of the credits will not apply to the entire cost. Most only apply to specific coverage prices like medical payments or collision. So even though they make it sound like having all the discounts means you get insurance for free, it just doesn't work that way. But any discount will bring down the amount you have to pay.

To see a list of providers who offer auto insurance discounts in Iowa, click here.

Cheap Melbourne Auto Insurance Comparisons

There are several ways you can shop for auto insurance but one way is more efficient than others. You can waste a lot of time driving to insurance agencies in Melbourne, or you could use the internet to achieve your goal.

Many insurance companies belong to an insurance system that allows shoppers to complete one form, and at least one company can provide price quotes for coverage. This prevents consumers from doing repetitive form submissions to each individual auto insurance company.

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

The only drawback to using this type of system is you are unable to specify which carriers you will receive quotes from. So if you prefer to pick specific insurance companies to compare rates, we have assembled a list of companies who write auto insurance in Iowa. Click to view list.

However you get your quotes, ensure you're using identical information on every quote. If you use higher or lower deductibles then you won't be able to make a fair comparison in Melbourne. Slightly different limits may result in a large different in cost. And when price shopping your coverage, getting more free quotes helps locate the best price.

You have some control over your rates

An important part of buying insurance is that you know the factors that help determine the rates you pay for auto insurance. Knowing what influences your rates enables informed choices that can help you get big savings.

The following are some of the factors auto insurance companies consider when setting your rates.

How credit affects auto insurance rates - Your credit history is a big factor in your rate calculation. If your credit score is not that good, you could pay less to insure your by spending a little time repairing your credit. Drivers who have good credit tend to be better drivers and file fewer claims than those with lower credit scores.
More claims means more premium - If you file claims often, you can definitely plan on higher rates. Insurance companies in Iowa generally give lower rates to drivers who are claim-free. Insurance coverage is intended for major claims that would cause financial hardship.
Where do you drive? - Driving more miles every year the higher your rates will be. Most insurance companies charge to insure your cars based on their usage. Cars not used for work or commuting can get a lower rate compared to those used for work or business. Ask your agent if your auto insurance coverage shows the proper vehicle usage, because it can save money.
Being married is a good thing - Being married can get you a discount on auto insurance. Marriage means you're more mature and statistics show drivers who are married are more cautious.
Extra coverages can waste money - There are a ton of extra bells and whistles you can purchase when buying auto insurance. Coverages for vanishing deductibles, better glass coverage and term life insurance are some examples. These coverages may sound good initially, but if they're wasting money eliminate them to save money.
Do men or women drive better? - The statistics show that women are safer drivers than men. However, this does not mean men are worse drivers. They both have accidents at about the same rate, but men have costlier accidents. Men also get more serious tickets like DUI and reckless driving. Young males are the most expensive to insure and therefore have the most expensive auto insurance rates.
More performance means more cost - The make and model of the vehicle you drive makes a huge difference in determining your rates. The lowest base rates are usually for small economy passenger cars, but the cost you end up paying is determined by many additional factors.
Cautious drivers pay less - Your driving record has a lot to do with how much you pay for insurance. Careful drivers get better rates compared to drivers with tickets. Even a single speeding ticket can boost insurance rates by twenty percent. Drivers who get flagrant violations such as reckless driving, hit and run or driving under the influence may be required to submit a SR-22 or proof of financial responsibility to the state department of motor vehicles in order to keep their license.

Is there truth in advertising?

Companies like State Farm and Allstate continually stream television and radio advertisements. All the ads have a common claim that you can save after switching to their company. How does each company claim to save you money? It's all in the numbers.

All the different companies can use profiling for the driver that is profitable for them. An example of a preferred risk might be a mature driver, is a homeowner, and has a high credit rating. A customer getting a price quote that hits that "sweet spot" is entitled to the best price and is almost guaranteed to save when switching.

Consumers who don't measure up to these standards will be charged higher rates and this can result in the customer not buying. Company advertisements say "customers who switch" but not "drivers who get quotes" save that much. That's why insurance companies can state the savings.

That is why drivers must get a wide range of price quotes. It's impossible to know the company that will have the lowest rates.

Do the work, save more money

We covered a lot of techniques to compare auto insurance prices online. The most important thing to understand is the more you quote, the better your chances of lowering your rates. You may even discover the best price on auto insurance is with some of the smallest insurance companies. These smaller insurers can often insure niche markets at a lower cost compared to the large companies like .

As you restructure your insurance plan, never reduce coverage to reduce premium. There have been many cases where an accident victim reduced comprehensive coverage or liability limits to discover at claim time that they should have had better coverage. Your goal should be to buy enough coverage at the best price, not the least amount of coverage.

Learn more today

More information is available on the website for the Iowa Insurance Division found here. Visitors are able to find out industry alerts, download brochures, file complaints about an insurance agent or broker, and get help finding coverage.