How to Know You're Paying Too Much for Auto Insurance in Milford

No one in their right mind looks forward to paying for auto insurance, particularly when their premiums are too high.

Big companies like State Farm, Allstate, GEICO and Progressive constantly blast consumers with ad campaigns and it is difficult to sift through the bull and effectively compare rates to find the best deal.

It's important to compare prices occasionally because prices are constantly changing. Despite the fact that you may have had the lowest price a year ago there is a good chance you can find better rates now. Block out anything you think you know about auto insurance because you're about to find out one of the best ways to properly buy coverages while reducing your premium.

If you have car insurance now, you should be able to cut costs considerably using these techniques. Choosing the best insurance company for you in Milford is not that difficult. Although Iowa consumers do need to know how companies compete online because it can help you find the best coverage.

How to Lower your Auto Insurance Rates

Consumers need to have an understanding of the rating factors that help determine the rates you pay for auto insurance. Having a good understanding of what impacts premium levels empowers consumers to make smart changes that can help you get lower auto insurance prices.

The following are a partial list of the pieces used by your company to calculate your rates.

Cautious drivers pay less - Drivers who don't get tickets get better rates compared to drivers with tickets. Only having one moving violation can bump up the cost twenty percent or more. Drivers who get flagrant violations like DUI or reckless driving may be required to file a proof of financial responsibility form (SR-22) to the state department of motor vehicles in order to keep their license.
How many coverages with the same company - Many auto insurance companies give discounts to insureds who buy several policies from them such as combining an auto and homeowners policy. Discounts can amount to ten or even up to twenty percent in some cases. Even if you're getting this discount it's still a good idea to comparison shop to verify if the discount is saving money.
Men pay higher rates - Statistics show women are more cautious behind the wheel. However, this does not mean women are BETTER drivers than men. Women and men cause accidents in similar numbers, but men have costlier accidents. Men also have more aggressive citations like DUI and reckless driving. Youthful male drivers are the most expensive to insure and are penalized with high auto insurance rates.
Lower rates with optional equipment - Owning a car with a theft deterrent system can help bring down rates. Theft prevention features like LoJack tracking devices, vehicle tamper alarm systems or GM's OnStar system can help prevent your vehicle from being stolen.

Automobile Insurance Quotes in Milford, IA

There are multiple methods to shop for auto insurance, and some are less labor-intensive and much quicker. You can spend your afternoon discussing policy coverages with insurance companies in Milford, or you could use the internet to get rates in a matter of minutes.

Most of the larger companies belong to a marketplace that enables customers to enter their coverage request one time, and each participating company can provide price quotes for coverage. This system prevents you from having to do quotation requests to each individual auto insurance company.

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

One minor caviat to comparing rates this way is you cannot specify which providers you will receive quotes from. If you would rather choose specific providers to compare rates, we put together a list of companies who write auto insurance in Iowa. Click to view list.

It doesn't matter which method you choose, just make absolute certain that you use exactly the same coverage information on every quote you get. If you use unequal deductibles or liability limits you can't possibly determine which rate is truly the best in Milford. Having just a slight variation in coverages can result in a big premium difference. And when quoting auto insurance, remember that comparing a large number of companies will increase your chances of finding the best offered rates.

Don't pay full price with these discounts

Companies that sell car insurance don't always list every available discount in a way that's easy to find, so we researched both the well known and also the lesser-known ways to save on auto insurance.

Early Switch Discount - Some companies give discounts for buying a policy prior to your current policy expiration. It's a savings of about 10%.
Braking Control Discount - Vehicles equipped with ABS or steering control can reduce accidents and qualify for as much as a 10% discount.
Senior Citizens - If you're over the age of 55, you may be able to get a small decrease in premiums.
Payment Method - If paying your policy premium upfront instead of making monthly payments you could save up to 5%.
E-sign - Certain companies may give you up to $50 for buying your policy digitally online.
Organization Discounts - Being a member of a civic or occupational organization could trigger savings on your policy.
Multiple Vehicles - Having multiple vehicles with the same company can get a discount on all vehicles.

A little note about advertised discounts, many deductions do not apply to your bottom line cost. Most only apply to specific coverage prices like medical payments or collision. So even though they make it sound like all the discounts add up to a free policy, you won't be that lucky.

To choose providers who offer auto insurance discounts in Milford, click this link.

The auto insurance bait and switch

Companies like State Farm and Allstate continually stream ads in print and on television. All the ads make the same claim about savings after switching your coverage to them. How can each company claim to save you money? It's all in the numbers.

All companies have a certain "appetite" for the type of customer that makes them money. For instance, a preferred risk might be between 25 and 40, owns a home, and has excellent credit. A customer getting a price quote who matches those parameters is entitled to the best price and therefore will save when they switch companies.

Drivers who don't measure up to the requirements will be charged a higher premium which leads to the customer not buying. The ads state "customers who switch" not "everyone that quotes" save that much money. That is how companies can truthfully make those claims. That is why you need to get quotes from several different companies. It's impossible to know which company will have the lowest rates.

Your personal situation dictates your coverage

When buying the best auto insurance coverage for your vehicles, there really is not a perfect coverage plan. Your needs are not the same as everyone else's so this has to be addressed. Here are some questions about coverages that might point out whether or not you would benefit from an agent's advice.

Does my car insurance cover rental cars?
Do I need PIP (personal injury protection) coverage in Iowa?
Should I buy additional glass protection?
What can I do if my company won't pay a claim?
Does my liability insurance cover pulling a trailer or camper?
Are rental cars covered under my policy?
Am I getting all the discounts available?

If it's difficult to answer those questions but you think they might apply to your situation, then you may want to think about talking to an insurance agent. To find lower rates from a local agent, fill out this quick form or click here for a list of auto insurance companies in your area.

Even more information is located at the Iowa Insurance Division website. Visitors are able to file complaints about a company, read consumer alerts, learn about insurance regulations, and view a list of available companies.

The best insurance company isn't always the cheapest

We covered many ideas to compare auto insurance prices online. The most important thing to understand is the more you quote, the better chance you'll have of finding lower rates. You may be surprised to find that the most savings is with a small mutual company. These smaller insurers may cover specific market segments cheaper as compared to the big name companies such as .

While you're price shopping online, it's not a good idea to reduce coverage to reduce premium. There have been many cases where an insured cut liability coverage limits only to discover later they didn't purchase enough coverage. Your goal should be to buy a smart amount of coverage at the best price, not the least amount of coverage.