How to Know You're Spending Too Much for Car Insurance in Mt Airy

Scraping up a payment for overpriced car insurance can take a big chunk out of your personal savings and put the squeeze on your family's finances. Doing a price comparison is free and is an excellent way to reduce premiums and put more money in your pocket. Companies like State Farm, Allstate, GEICO and Progressive continually bombard you with catchy ads and consumers find it hard to sift through the bull and do the work needed to find the best deal.

If you have a policy now or need a new policy, you can learn to find better prices while maintaining coverages. Finding the best rates in Mt Airy is easy if you know what you're doing. Maryland vehicle owners just need to know the proper way to shop for car insurance on the web.

These discounts can lower your rates

Insurance can cost an arm and a leg, but there could be available discounts that you may not know about. Some trigger automatically when you purchase, but lesser-known reductions have to be inquired about before being credited. If you aren't receiving every discount you deserve, you are throwing money away.

  • Multiple Cars - Buying coverage for all your vehicles on one policy could earn a price break for each car.
  • Paperless Signup - A few companies may give you up to $50 for buying a policy and signing up digitally online.
  • Clubs and Organizations - Being a member of a civic or occupational organization could trigger savings when buying car insurance.
  • Pay Now and Pay Less - If paying your policy premium upfront instead of monthly or quarterly installments you may reduce your total bill.
  • Student in College - Any of your kids who live away from home and don't have a car can be insured at a reduced rate.
  • Auto/Life Discount - Select insurance companies reward you with better rates if you take out life insurance.
  • Save with a New Car - Adding a new car to your policy is cheaper because new vehicles have to meet stringent safety requirements.
  • Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to enroll in driver's education if offered at their school.
  • No Accidents - Drivers who don't have accidents can earn big discounts when compared with drivers who are more careless.
  • Service Members Pay Less - Having a family member in the military could be rewarded with lower premiums.

Drivers should understand that most discount credits are not given to all coverage premiums. Most only reduce the cost of specific coverages such as physical damage coverage or medical payments. So when the math indicates adding up those discounts means a free policy, companies wouldn't make money that way. But all discounts will reduce the cost of coverage.

You have some control over your rates

Smart consumers have a good feel for the rating factors that play a part in calculating the rates you pay for car insurance. Having a good understanding of what controls the rates you pay enables informed choices that could result in much lower annual insurance costs.

Shown below are some of the factors car insurance companies consider when setting premiums.

  • Don't sacrifice liability coverage - Your policy's liability coverage is the protection if you are found liable for causing damage or personal injury in an accident. Liability provides legal defense coverage which can be incredibly expensive. Carrying liability coverage is mandatory and cheap as compared to coverage for physical damage, so drivers should carry high limits.
  • Discounts for married couples - Being married helps lower the price on your car insurance policy. Having a spouse means you're more mature than a single person and it's statistically proven that married drivers get in fewer accidents.
  • Optional equipment can affect rates - Purchasing a vehicle that has an advanced theft prevention system can help bring down rates. Theft prevention devices such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping your vehicle from being stolen.
  • Your location affects your rates - Residing in small towns and rural areas is a positive aspect when talking about car insurance. Fewer drivers translates into fewer accidents and also fewer theft and vandalism claims. City drivers have more traffic problems and much longer commute distances. More time commuting can result in more accidents.
  • More miles equals more premium - The higher the mileage driven in a year's time the more you'll pay to insure your vehicle. Most insurance companies charge to insure your cars based on how the vehicle is used. Autos used primarily for pleasure use can get a lower rate than vehicles that are driven to work every day. Double check that your car insurance declarations sheet is rated on the correct usage for each vehicle, because it can save money.
  • Claim-free discounts can add up - If you frequently file small claims, you can expect either policy cancellation or increased premiums. Auto insurance companies in Maryland give cheaper rates to people who are claim-free. Your insurance policy is intended for the bigger claims that can't be paid out-of-pocket.

Are you falling for claims of savings?

Consumers in Maryland get pounded daily by advertisements for car insurance savings by Allstate, GEICO and Progressive. All the companies make the same claim that you'll save big if you change to their company.

How can each company claim to save you money?

Insurance companies have a preferred profile for the driver that earns them a profit. An example of a profitable customer might be between 25 and 40, insures multiple vehicles, and has great credit. Any driver who matches those parameters will get the preferred rates and as a result will probably save when they switch companies.

Consumers who are not a match for the requirements must pay higher prices which leads to the customer not buying. The ads state "people who switch" not "everybody who quotes" save that much. This is how companies can advertise the savings.

This illustrates why drivers should compare many company's rates. You cannot predict which insurance companies will fit your personal profile best.

For more Maryland car insurance information

Much more information about car insurance in Maryland is available on the website for the Maryland Insurance Administration through this link. Visitors are able to find out which companies have the most complaints, get help finding coverage, view a list of available companies, and view agent and company licensing information.

And the best car insurance company is...

Budget-conscious car insurance can be sourced both online and also from your neighborhood Mt Airy agents, so you should compare both in order to have the best price selection to choose from. There are still a few companies who may not provide you the ability to get quotes online and usually these smaller companies provide coverage only through local independent agents.

When you buy insurance online, it's not a good idea to skimp on coverage in order to save money. In too many instances, drivers have reduced comprehensive coverage or liability limits to discover at claim time that the few dollars in savings costed them thousands. Your focus should be to get the best coverage possible at an affordable rate while not skimping on critical coverages.