Getting the Cheapest Panama Car Insurance

Did you fall for a flashy sales pitch and buy an overpriced car insurance policy? Believe me when I say there are a lot of people in Panama just like you who feel imprisoned by their car insurance policy.

Popular companies such as GEICO and Progressive constantly bombard you with catchy ads and consumers find it hard to sift through the bull and take the time to shop coverage around.

If you are paying for car insurance now, you stand a good chance to be able to reduce your rates substantially using this information. Finding affordable coverage in Panama is quite easy. Nevertheless, Iowa car owners do need to know the way insurance companies sell online.

How much can you save with discounts?

Companies do not list all available discounts in a way that's easy to find, so the following is a list of some of the more common and the harder-to-find car insurance savings.

  • Clubs and Organizations - Belonging to a civic or occupational organization could qualify you for a break when buying car insurance.
  • Multiple Vehicles - Buying insurance for multiple vehicles on one policy qualifies for this discount.
  • Homeowners Discount - Owning a home in Panama may trigger a car insurance policy discount due to the fact that maintaining a home demonstrates responsibility.
  • Federal Government Employee - Active or retired federal employment may qualify you for a discount depending on your company.
  • Discount for Good Grades - Performing well in school can be rewarded with saving of up to 25%. The good student discount can last well after school through age 25.
  • 55 and Retired - If you qualify as a senior citizen, you may be able to get better car insurance rates.
  • Use Seat Belts - Using a seat belt and requiring all passengers to use a seat belt can save 10% or more off your PIP or medical payments premium.
  • Fewer Miles Equal More Savings - Fewer annual miles could qualify for lower rates on the low mileage vehicles.

Consumers should know that most credits do not apply to all coverage premiums. Most only reduce the price of certain insurance coverages like physical damage coverage or medical payments. Even though it may seem like having all the discounts means you get insurance for free, companies don't profit that way.

Panama Rates are Influenced by These Factors

Smart consumers have a good feel for some of the elements that help determine your car insurance rates. Having a good understanding of what determines base rates enables informed choices that could result in big savings.

The following are some of the items car insurance companies consider when setting premiums.

  • Protect your assets with liability insurance - Liability coverage provides coverage if you are found to be at fault for causing damage or personal injury in an accident. It provides you with a defense in court which can cost thousands of dollars. Carrying liability coverage is mandatory and cheap when compared with rates for comp and collision, so buy as much as you can afford.
  • Do you know your deductibles? - Your deductibles represent how much money you are required to spend before your car insurance pays a claim. Insurance for physical damage to your car, otherwise known as comp (or other than collision) and collision, covers damage that occurs to your car. Some instances where coverage would apply are colliding with a building, damage caused by hail, and windstorm damage. The more expense you are required to pay out-of-pocket, the less your car insurance will be.
  • How's your driving record? - Whether or not you get tickets has a huge affect on how much you pay. Careful drivers tend to pay less for car insurance compared to drivers with tickets. Just one citation can boost insurance rates forty percent or more. Drivers with flagrant tickets such as reckless driving, hit and run or driving under the influence are required to submit a SR-22 or proof of financial responsibility with their state motor vehicle department in order to keep their license.
  • Older drivers pay less - Older insureds are more responsible, file fewer claims and are safer drivers. Young drivers are known to get distracted easily when behind the wheel and because of this, their car insurance rates are much higher.
  • Never let your coverage lapse - Letting your insurance expire will be a fast way to trigger a rate increase. Not only will rates go up, failure to provide proof of insurance might get you a steep fine or even jail time.
  • Add-on coverages can add up - There are a ton of extra coverages that you can get tricked into buying on your policy. Insurance for vanishing deductibles, accidental death and term life insurance are examples of these. They may seem good when talking to your agent, but if they're wasting money eliminate the coverages to reduce your premium.

Save 15 percent in 15 minutes? Is it for real?

Allstate, GEICO and Progressive continually stream television and radio advertisements. All the companies say the same thing of big savings after switching to their company. How can each company make the same claim? This is how they do it.

All the different companies are able to cherry pick for the driver that earns them a profit. A good example of a profitable customer could be a mature driver, has no driving citations, and has a short commute. A customer who fits that profile will get the preferred rates and is almost guaranteed to save when they switch companies.

Potential customers who don't meet the requirements must pay higher prices which usually ends up with business going elsewhere. The ads state "drivers who switch" but not "drivers who get quotes" save that much. That's the way insurance companies can confidently make the claims of big savings. This illustrates why drivers should get a wide range of price quotes. Because you never know which car insurance company will fit your personal profile best.

Learn more about Iowa car insurance

More tips and info about car insurance can be read at the Iowa Insurance Division website. Consumers can find out which companies have the most complaints, report car insurance fraud, file complaints about a company, and read enforcement actions against agents and companies.

The best insurance company isn't always the cheapest

Cost effective car insurance can be sourced from both online companies and also from your neighborhood Panama agents, and you need to price shop both so you have a total pricing picture. Some insurance providers may not provide you the ability to get quotes online and usually these small insurance companies provide coverage only through local independent agents.

As you shop your coverage around, it's a bad idea to skimp on coverage in order to save money. In too many instances, someone sacrificed full coverage and found out when filing a claim that saving that couple of dollars actually costed them tens of thousands. Your focus should be to get the best coverage possible for the lowest price while not skimping on critical coverages.