How to Know You're Wasting Money for Auto Insurance in Penhook

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Trust us, you're not the only one. Drivers have multiple to pick from, and although it's nice to have multiple companies, it can be more challenging to compare rates.

It's important to compare prices at least once a year because prices are constantly changing. Just because you had the best deal two years ago a different company probably has better rates today. Starting right now, block out anything you think you know about auto insurance because you're going to get a crash course in the proper way to find lower rates on auto insurance.

These discounts can lower your rates

Car insurance can cost a lot, but you can get discounts that you may not even be aware of. Some discounts apply automatically at quote time, but some must be specially asked for in order for you to get them. If you're not getting every credit possible, you are throwing money away.

  • Passive Restraints - Vehicles with factory air bags and/or automatic seat belt systems may earn rate discounts up to 30%.
  • Defensive Driver - Completing a defensive driving course could possibly earn you a 5% discount if you qualify.
  • Discount for Good Grades - Performing well in school can get you a discount of up to 25%. The discount lasts until age 25.
  • Discount for Life Insurance - Some companies give a discount if you purchase a life insurance policy as well.
  • E-sign - Certain companies may give you up to $50 just for signing your application over the internet.

It's important to note that most credits do not apply the the whole policy. The majority will only reduce specific coverage prices like medical payments or collision. So even though it sounds like it's possible to get free car insurance, you're out of luck. But any discount will bring down the cost of coverage.

Virginia auto insurance

Good Decisions Result in Lower Rates

Smart consumers have a good feel for some of the elements that go into determining the rates you pay for auto insurance. Knowing what influences your rates enables informed choices that can help you get lower auto insurance prices.

  • Cautious drivers pay less - Your driving record has a lot to do with how much you pay for insurance. Careful drivers get better rates than bad drivers. Just one speeding ticket can boost insurance rates forty percent or more. Drivers who get serious violations such as reckless driving, hit and run or driving under the influence may be required to submit a SR-22 form to the state department of motor vehicles in order to continue driving.
  • Do you need those extra coverages? - There are many extra coverages you can purchase when buying auto insurance. Coverages for rental car reimbursement, better glass coverage and term life insurance are examples of these. These coverages may sound good initially, but if they're wasting money eliminate them to save money.
  • Where do you drive? - The more miles you rack up on your car in a year the higher your rates will be. Most insurance companies charge to insure your cars based on their usage. Vehicles left parked in the garage can get a lower rate than vehicles that are driven to work every day. Make sure your auto insurance policy shows how each vehicle is driven, because it can save money.
  • Are you male or female? - Statistics demonstrate that women are safer drivers than men. That doesn't necessarily mean that men are worse drivers. Women and men are in accidents at about the same rate, but men cause more damage. Men also get cited for more serious violations like DUI and reckless driving. Young males are the most expensive to insure and therefore are the most expensive to insure.
  • Poor credit can mean higher rates - Your credit score is a big factor in calculating your auto insurance rates. If your credit score is lower than you'd like, you could potentially save money when insuring your by spending a little time repairing your credit. Drivers who have good credit tend to be better drivers and file fewer claims than those with poor credit.
  • An active claims history can cost you - If you tend to file frequent claims, you can pretty much guarantee either a policy non-renewal or much higher rates. Insurance companies in Virginia provide lower rates to drivers who are claim-free. Auto insurance is intended for the large, substantial claims.
  • Multi-policy discounts can save money - Most companies give discounts to insureds who consolidate policies with them in the form of a multi-policy discount. Even with this discount, it's still a good idea to compare other company rates to ensure the best deal. You may still be able to find a better deal by splitting coverages up.

Are you falling for claims of savings?

Consumers in Virginia get pounded daily by advertisements that promise big savings by State Farm and Allstate. All the ads say the same thing that you can save if you switch to their company.

How does each company claim to save you money? It's all in the numbers.

All companies are able to cherry pick for the driver that earns them a profit. An example of a preferred risk might be over the age of 50, has no tickets, and chooses high deductibles. A customer getting a price quote who fits that profile gets the lowest rates and as a result will probably save when switching.

Potential insureds who are not a match for these standards will be charged more money which usually ends up with the customer not buying. Company advertisements say "customers who switch" not "everybody who quotes" save that much. That's the way insurance companies can state the savings.

That is why drivers should quote coverage with many companies. It's impossible to know which auto insurance company will give you the biggest savings.

More information is available on the website for the Virginia Bureau of Insurance found here. Visitors are able to file complaints about a company, discover disciplinary actions, file complaints about an insurance agent or broker, and learn about insurance regulations.

Also read more on NAIC.org's Understanding your Policy and this directory of Penhook insurance agents.

auto insurance in Penhook

In the end, you save

We covered a lot of tips how to reduce auto insurance prices online. The key thing to remember is the more you quote, the better your comparison will be. Drivers may discover the biggest savings come from some of the smallest insurance companies. Regional companies often have lower prices on specific markets than the large multi-state companies such as .

Lower-priced auto insurance is available both online and also from your neighborhood Penhook agents, and you should be comparing both in order to have the best chance of saving money. Some insurance companies may not provide you the ability to get quotes online and many times these smaller companies only sell through independent insurance agents.

When buying insurance coverage, make sure you don't skimp on coverage in order to save money. There have been many cases where an insured dropped liability limits or collision coverage only to find out that their decision to reduce coverage ended up costing them more. Your goal should be to buy the best coverage you can find at the best price, not the least amount of coverage.