How to Know You're Throwing Money Away for Auto Insurance in Rancho Mirage

Tired of paying out the nose each month for car insurance? Your situation is no different than many other California drivers.

Drivers have so many to buy insurance from, and even though it's nice to be able to choose, too many choices makes it more difficult to compare rates.

It's important to compare prices before your policy renews since insurance rates are constantly changing. Despite the fact that you may have had the best rates a couple years back you can probably find a better price now. There is too much inaccurate information about auto insurance on the web, but we're going to give you some great ways to quit paying high auto insurance rates.

How to Lower your Auto Insurance Rates

Consumers need to have an understanding of the different types of things that help determine auto insurance rates. Knowing what influences your rates empowers consumers to make smart changes that can help you get lower auto insurance prices.

Do you know you're credit rating? - Your credit history is a big factor in your rate calculation. So if your credit is not that good, you could save money insuring your by spending a little time repairing your credit. People with good credit tend to be more responsible than those with lower credit scores.
Your auto insurance rates can be influenced by your job - Did you know your auto insurance rates can be affected by your occupation? Occupations like real estate brokers, business owners and financial analysts have higher average rates due to high stress and lengthy work days. Conversely, professions such as farmers, engineers and performers get better rates.
With age comes lower rates - Teenage drivers in California are known to be less responsible in a vehicle so they pay higher auto insurance rates. Mature drivers tend to be more responsible, tend to file fewer claims and receive fewer citations.
Men pay higher rates - The statistics show that women are safer drivers than men. However, this does not mean women are BETTER drivers than men. Women and men tend to get into accidents at a similar rate, but men have costlier accidents. Men also receive more costly citations like reckless driving and DUI. Young males are the most expensive to insure and are penalized with high auto insurance rates.
Do you have enough liability coverage? - Liability coverage will protect you in the event that a jury decides you are liable for personal injury or accident damage. It will provide you with a defense in court starting from day one. Liability is cheap when compared with rates for comp and collision, so do not cut corners here.
Lower rates with optional equipment - Driving a car with a theft deterrent system can get you a discount on your auto insurance. Theft prevention features such as LoJack tracking devices, vehicle tamper alarm systems or GM's OnStar system all hinder car theft.
Extra coverages can waste money - There are a ton of extra bells and whistles you can purchase if you aren't careful. Coverages for roadside assistance, better glass coverage and additional equipment coverage may be costing you every month. These coverages may sound good initially, but now you might not need them so eliminate them to save money.
High performance equals high price - The make and model of the vehicle you drive makes a significant difference in the rate you pay. The lowest base rates are usually for small economy passenger cars, but there are many factors that impact the final cost.

Save big with these discounts

Companies offering auto insurance don't always list every available discount very clearly, so the following is a list of some of the best known and also the lesser-known savings tricks you should be using.

Passive Restraints - Vehicles with factory air bags may earn rate discounts up to 30%.
Employee of Federal Government - Employees or retirees of the government can save as much as 8% with certain companies.
Resident Student - Kids in college living away from home attending college and do not have access to a covered vehicle may qualify for this discount.
Senior Discount - If you're over the age of 55, you may be able to get a small decrease in premiums.
Claim Free - Claim-free drivers pay less compared to accident-prone drivers.

Keep in mind that most discount credits are not given to the entire cost. Most only cut specific coverage prices like medical payments or collision. So even though they make it sound like all the discounts add up to a free policy, it just doesn't work that way.

To choose providers who offer auto insurance discounts in California, click here to view.

Auto insurance ads bend the truth

Companies like State Farm and Allstate continually stream ads on TV and radio. All the ads make an identical promise that you can save after switching your coverage to them. How does each company say the same thing? It's all in the numbers.

All companies can use profiling for the type of customer that makes them money. A good example of a preferred risk might be profiled as a mature driver, is a homeowner, and drives less than 10,000 miles a year. A propective insured who meets those qualifications will qualify for the lowest rates and most likely will save when switching.

Drivers who fall outside these standards will be charged a higher premium and ends up with business not being written. The ad wording is "customers who switch" not "people who quote" save that much money. That's why insurance companies can advertise the way they do. That is why you should get as many quotes as possible. It's not possible to predict the company that will provide you with the cheapest rates.

Learn more today

Additional detailed information can be read at the California Department of Insurance website. California drivers can find out industry alerts, read industry bulletins, read enforcement actions against agents and companies, and learn about insurance regulations.

Final considerations

Throughout this article, we presented some good ideas how you can save on auto insurance. The most important thing to understand is the more you quote, the better your chances of lowering your rates. You may be surprised to find that the best price on auto insurance is with some of the smallest insurance companies. Some small companies can often insure niche markets at a lower cost than their larger competitors like .

As you go through the steps to switch your coverage, it's very important that you do not buy poor coverage just to save money. There have been many cases where an accident victim reduced full coverage and found out when filing a claim that the savings was not a smart move. Your goal should be to purchase a proper amount of coverage at the best price, not the least amount of coverage.