How to Know You're Spending Too Much for Auto Insurance in Natchez
Overpriced auto insurance can overdraw your checking account and force you to make sacrifices. Shopping your coverage around is a great way to reduce premiums and put more money in your pocket.
Companies like State Farm, Allstate, GEICO and Progressive increase brand awareness with ad campaigns and it is challenging if not impossible to sift through the bull and take the time to shop coverage around.
You have some control over your rates
Consumers need to have an understanding of the factors that come into play when calculating the price you pay for auto insurance. Having a good understanding of what influences your rates enables informed choices that will entitle you to big savings.
- Lower rates with optional equipment - Purchasing a vehicle with anti-theft technology or alarm system can help bring down rates. Anti-theft devices such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping auto theft.
- Being married is a good thing - Having a spouse actually saves money on auto insurance. Having a significant other means you're more mature it has been statistically shown that married drivers get in fewer accidents.
- High numbers of claims are not good - Companies in Mississippi generally give cheaper rates to drivers who are claim-free. If you frequently file small claims, you can expect higher rates. Insurance coverage is designed for the bigger claims that can't be paid out-of-pocket.
- High deductibles save money - The deductibles define the amount you are required to spend out-of-pocket before your auto insurance pays a claim. Coverage for physical damage, commonly called comprehensive (or other-than-collision) and collision coverage, protects your car from damage. Some instances where coverage would apply could be running into the backend of another car, vandalism, and burglary. The higher the amount you are required to pay out-of-pocket, the bigger discount you will receive.
- Rates may be lower depending on your job - Careers like lawyers, social workers and dentists tend to have the highest average rates in part from high stress and lots of time spent at work. Other jobs such as pilots, historians and the unemployed receive lower rates.
- Higher safety ratings means cheaper insurance - Vehicles with good safety scores get lower rates. The safest vehicles reduce injuries and lower injury rates translates into savings for insurance companies and more competitive rates for policyholders.
Don't pay full price with these discounts
Companies offering auto insurance don't list every discount in a way that's easy to find, so we took the time to find both well-publicized and the harder-to-find discounts you could be receiving.
- Pay Upfront and Save - By paying your policy upfront instead of making monthly payments you may reduce your total bill.
- Own a Home - Simply owning a home can save you money because of the fact that having a home is proof that your finances are in order.
- Drivers Ed for Students - Cut your cost by having your teen driver successfully complete driver's ed class in high school.
- More Vehicles More Savings - Having multiple cars or trucks with the same company qualifies for this discount.
- No Accidents - Drivers who don't have accidents can save substantially when compared to accident-prone drivers.
Keep in mind that some of the credits will not apply to all coverage premiums. Most only apply to the price of certain insurance coverages like liability and collision coverage. Just because it seems like all those discounts means the company will pay you, it just doesn't work that way.
To choose insurance companies with the best auto insurance discounts in Natchez, click here.
The auto insurance bait and switch
Auto insurance providers like State Farm, Allstate and GEICO regularly use ads in print and on television. They all have a common claim that you can save if you move to their company. How can each company make almost identical claims? This is how they do it.
All the different companies have a preferred profile for the driver that makes them money. For example, a driver they prefer could possibly be a mature driver, insures multiple vehicles, and has great credit. A customer getting a price quote that hits that "sweet spot" 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 quoted a higher premium and this can result in the driver buying from a lower-cost company. The ads state "drivers who switch" not "everyone that quotes" save that much. This is how insurance companies can advertise the savings. This emphasizes why you should get as many quotes as possible. It's impossible to know which insurance companies will fit your personal profile best.
For more Mississippi auto insurance information
Additional detailed information can be found at the Mississippi Insurance Department website. Mississippi consumers can view a list of available companies, get help finding coverage, download brochures, and report car insurance fraud.
Shop smart and save
Affordable auto insurance is possible online and also from your neighborhood Natchez agents, and you need to price shop both to have the best selection. There are still a few companies who may not provide online price quotes and these regional insurance providers work with independent agents.
When you buy insurance online, it's not a good idea to buy poor coverage just to save money. There have been many situations where drivers have reduced physical damage coverage only to regret at claim time that the few dollars in savings costed them thousands. The proper strategy is to buy a smart amount of coverage for the lowest price while still protecting your assets.