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

No one likes having to buy auto insurance, in particular when the price is too high.

With consumers having so many different company options, it's difficult to find the cheapest company.

It's important to compare rates periodically because prices are constantly changing. Despite the fact that you may have had the best deal a few years ago you can probably find a better price now. Starting right now, forget anything you know (or think you know) about auto insurance because you're going to get a crash course in the proper way to properly buy coverages and cut your premium.

Finding affordable coverage in Newark is not that difficult. If you currently have car insurance, you stand a good chance to be able to save some money using this information. Although Illinois drivers do need to know how companies compete online and take advantage of how the system works.

You have some control over your rates

Consumers need to have an understanding of some of the elements that help determine the price you pay for auto insurance. When you know what positively or negatively impacts premium levels enables informed choices that may reward you with better auto insurance rates.

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

With age comes lower rates - Teen drivers in Illinois are known to be more careless behind the wheel so auto insurance rates are higher. If you've ever had to add a young driver to your auto insurance policy can really hurt. Older drivers are viewed as being more responsible, tend to cause fewer accidents and are safer drivers.
Careful drivers pay lower rates - Just one speeding ticket can boost insurance rates by as much as thirty percent. Careful drivers receive lower rates compared to drivers with tickets. Drivers who have flagrant citations such as reckless driving, hit and run or driving under the influence may need to submit a SR-22 or proof of financial responsibility with their state DMV in order to keep their license.
Consolidate policies to earn discounts - Many companies will give a discount to customers who have multiple policies with them, otherwise known as a multi-policy discount. Even if you're getting this discount you may still want to comparison shop to ensure the best deal.
The more you drive the more you pay - Driving more miles each year the more you will pay for auto insurance. Most insurance companies apply a rate based upon how you use the vehicle. Vehicles that are left in the garage can get a lower rate compared to those used for work or business. Verify your auto insurance coverage properly reflects the proper vehicle usage, because it can save money.

Policy discounts you shouldn't miss

Car insurance companies don't list all their discounts very well, so here is a list both well-publicized and the more hidden auto insurance savings.

Discount for New Cars - Buying coverage on a new vehicle can cost up to 25% less compared to insuring an older model.
Good Student - This discount can save 20 to 25%. The discount lasts well after school through age 25.
College Student - Children who live away from home and do not have access to a covered vehicle can receive lower rates.
Anti-theft System - Anti-theft and alarm systems are stolen less frequently and qualify for as much as a 10% discount.
Multiple Vehicles - Buying insurance for multiple vehicles with the same company could earn a price break for each car.
Discount for Life Insurance - Companies who offer life insurance give a break if you buy life insurance from them.
Drive Less and Save - Fewer annual miles can qualify you for lower rates on the low mileage vehicles.

A little note about advertised discounts, most credits do not apply to the entire policy premium. Most only reduce the cost of specific coverages such as liability, collision or medical payments. So when the math indicates you would end up receiving a 100% discount, you won't be that lucky.

To choose companies who offer auto insurance discounts in Illinois, follow this link.

Save $429 a year? Really?

Auto insurance companies such as Progressive, GEICO, Allstate and State Farm continually stream television and radio advertisements. They all seem to say the same thing about savings after switching to their company. But how can every company make almost identical claims?

Different companies have a certain "appetite" for the driver that makes them money. An example of a desirable insured could possibly be between 25 and 40, a clean driving record, and drives less than 7,500 miles a year. A customer getting a price quote who fits that profile will get the preferred rates and is almost guaranteed to save a lot of money.

Consumers who don't qualify for this ideal profile will have to pay higher prices which usually ends up with the driver buying from a lower-cost company. The ads state "people who switch" but not "drivers who get quotes" save that much. That is how companies can truthfully advertise the way they do. Because of the profiling, you should compare as many rates as you can. It's impossible to know which company will provide you with the cheapest rates.

Insurance agents can help

When buying proper insurance coverage for your vehicles, there really is no cookie cutter policy. Everyone's needs are different and a cookie cutter policy won't apply. For example, these questions may help highlight whether your personal situation would benefit from an agent's advice.

Should I file a claim if it's only slightly more than my deductible?
Do I need to file an SR-22 for a DUI in Illinois?
What are Illinois no-fault laws?
Do I need special endorsements for business use of my vehicle?
Am I covered when driving on a suspended license?
What happens if I owe more than my vehicle is worth?

If you don't know the answers to these questions but you think they might apply to your situation then you might want to talk to a licensed insurance agent. To find lower rates from a local agent, fill out this quick form or you can go here for a list of companies in your area.

Even more information is available at the Illinois Department of Insurance website. Illinois consumers can read enforcement actions against agents and companies, file complaints about a company, read consumer alerts, and file complaints about an insurance agent or broker.

Other informative sites include Auto Insurance 101 and this page where you can research Newark insurance agents.

Do the work, save more money

When shopping online for auto insurance, do not buy poor coverage just to save money. There are many occasions where someone dropped liability limits or collision coverage only to find out that a couple dollars of savings turned into a financial nightmare. Your aim should be to get the best coverage possible at an affordable rate.

You just read a lot of tips how to save on auto insurance. The most important thing to understand is the more times you quote, the more likely it is that you will get a better rate. Drivers may discover the most savings is with an unexpected company. Some small companies may cover specific market segments cheaper compared to the large companies like .

The cheapest auto insurance can be bought online and also from your neighborhood Newark agents, so you should compare both in order to have the best price selection to choose from. Some auto insurance companies may not provide online price quotes and most of the time these smaller companies sell through independent agents.