How to Know You're Spending Too Much for Auto Insurance in Oakland

Scraping up a payment for overpriced auto insurance can overdraw your savings account and put the squeeze on your family's finances. Doing a price comparison is a great way to lower your monthly bill.

Companies like GEICO and Progressive all promote huge savings 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 quite often since insurance rates are constantly changing. Just because you found the best deal last year you can probably find a better price now. Starting right now, ignore everything you know about auto insurance because it's time to teach you the proper way to find lower rates on auto insurance.

If you have car insurance now, you will be able to save some money using this information. Finding affordable coverage in Oakland is easy if you know what you're doing. But Maine vehicle owners do need to know the way companies sell online and take advantage of how the system works.

Good Decisions Result in Lower Rates

Consumers need to have an understanding of the factors that play a part in calculating auto insurance rates. Having a good understanding of what controls the rates you pay enables informed choices that can help you get lower auto insurance prices.

Shown below are some of the factors auto insurance companies consider when setting your rates.

Bundling policies can get discounts - Some insurance companies give discounts to people who have multiple policies with them such as combining an auto and homeowners policy. Discounts can be 10 percent or more. Even though this discount sounds good, it's still a good idea to comparison shop to ensure the best deal.
With age comes lower rates - More mature drivers tend to be more responsible, tend to file fewer claims and are safer drivers. Teenage drivers have a tendency to be careless and easily distracted when driving and because of this, their auto insurance rates are much higher.
Don't sacrifice liability coverage - Your policy's liability coverage is the protection in the event that a jury decides you are liable for causing damage or personal injury in an accident. It provides legal defense coverage starting from day one. Liability is cheap as compared to coverage for physical damage, so do not skimp.
No coverage gaps is important - Driving your car without having proper coverage can get your license suspended and as a result your rates will increase for letting your coverage lapse. Not only will rates go up, getting caught without coverage will get you a license revocation or jail time.
Do you work long hours in a high stress job? - Occupations like doctors, social workers and dentists tend to have the highest average rates due to stressful work requirements and lengthy work days. Other occupations like pilots, historians and retirees receive lower rates.

Be sure to get all your discounts

Companies that sell car insurance don't list every available discount in a way that's easy to find, so here is a list some of the best known and also the lesser-known discounts you could be receiving.

Anti-lock Brakes - Vehicles equipped with ABS or steering control can avoid accidents and will save you 10% or more.
Senior Discount - If you're over the age of 55, you may receive better auto insurance rates.
Organization Discounts - Affiliation with a civic or occupational organization may earn a discount on your policy.
Seat Belt Usage - Requiring all passengers to buckle their seat belts can save up to 15% on the medical payments or PIP coverage costs.
No Accidents - Drivers who don't have accidents can earn big discounts compared to accident-prone drivers.
Own a Home - Being a homeowner can save you money because maintaining a house requires personal responsibility.
Drivers Ed for Students - Cut your cost by having your teen driver take driver's ed class if offered at their school.
Safety Course Discount - Completing a course teaching defensive driving skills could cut 5% off your bill if your company offers it.
Government Employees - Employees or retirees of the government can save as much as 8% with certain companies.
Good Student Discount - This discount can get you a discount of up to 25%. The discount lasts up until you turn 25.

Drivers should understand that some credits don't apply to the overall cost of the policy. Most only apply to specific coverage prices like comprehensive or collision. Just because it seems like it's possible to get free car insurance, companies wouldn't make money that way.

To choose providers with discount auto insurance rates in Oakland, click here.

Is there truth in advertising?

Companies like Allstate and Progressive consistently run television and radio advertisements. All the ads have a common claim that you'll save big if you change to their company. How can each company say the same thing? It's all in the numbers.

All companies have a preferred profile for the driver that makes them money. An example of a preferred risk might be profiled as between the ages of 30 and 50, insures multiple vehicles, and has great credit. A propective insured that hits that "sweet spot" is entitled to the best price and is almost guaranteed to save when they switch companies.

Drivers who don't measure up to the requirements will be charged a higher premium and this can result in business not being written. The ads state "customers who switch" but not "drivers who get quotes" save that much. This is how companies can advertise the savings. That is why you should get quotes from several different companies. It's not possible to predict which insurance companies will give you the biggest savings.

How do I know if I need professional advice?

When buying proper insurance coverage for your personal vehicles, there really is not a single plan that fits everyone. Every situation is different and your policy should reflect that. For example, these questions may help you determine whether or not you might need an agent's assistance.

Do I need PIP (personal injury protection) coverage in Maine?
Am I covered by my employer's commercial auto policy when driving my personal car for business?
Do I qualify for additional discounts?
Why am I be forced to buy a membership to get insurance from some companies?
Will I be non-renewed for getting a DUI or other conviction?
Does my policy cover my teen driver if they drive my company car?
Is my cargo covered for damage or theft?
Is rental equipment covered for theft or damage?

If you can't answer these questions, then you may want to think about talking to a licensed insurance agent. To find lower rates from a local agent, take a second and complete this form or click here for a list of auto insurance companies in your area.

More detailed Maine auto insurance information is available at the Maine Bureau of Insurance website. Maine drivers can read consumer alerts, read enforcement actions against agents and companies, find out which companies have the most complaints, and find a variety of consumer forms.

Affordable insurance is out there

As you prepare to switch companies, it's a bad idea to buy poor coverage just to save money. Too many times, drivers have reduced liability limits or collision coverage only to find out that the small savings ended up costing them much more. The aim is to buy a smart amount of coverage at the best price, not the least amount of coverage.

Budget-conscious auto insurance can be sourced on the web and also from your neighborhood Oakland agents, and you should compare price quotes from both to have the best selection. There are still a few companies who may not provide online price quotes and many times these smaller companies only sell through independent insurance agents.