Easy Methods to Pay Less on Richmond Auto Insurance

Comparing Richmond auto insurance rates online can be complicated if you have never used online quotes. Don't let that stop you because there is an easy way to compare rates.

What determines how much you pay?

Consumers need to have an understanding of the factors that go into determining auto insurance rates. Knowing what impacts premium levels allows you to make educated decisions that could result in lower auto insurance prices.

Listed below are some of the factors companies use to determine premiums.

  • Do you need the policy add-ons? - There are many additional coverages that you can get tricked into buying if you aren't careful. Coverages for roadside assistance, accidental death and motor club memberships are some examples. These may sound like a good investment when you first buy your policy, but if you don't need them eliminate them to save money.
  • Performance makes a difference - The type of car you are insuring makes a significant difference in the rate you pay. The lowest rates are generally reserved for economy passenger cars, but there are many factors that impact the final cost.
  • A clean driving record saves money - Only having one speeding ticket can increase rates twenty percent or more. Good drivers have lower premiums than bad drivers. Drivers with serious tickets such as DWI, reckless driving or hit and run convictions are required to file a SR-22 with the DMV in their state in order to continue driving.
  • Pleasure use saves money - The more miles you rack up on your car each year the more you'll pay to insure your vehicle. Most companies price each vehicle's coverage based upon how you use the vehicle. Cars left parked in the garage can get a lower rate than those used for commuting. Make sure your auto insurance policy shows how each vehicle is driven, because it can save money.

auto insurance in Richmond

Take advantage of discounts

Auto insurance companies do not advertise all available discounts very clearly, so here is a list some of the best known as well as the least known discounts you could be receiving.

  • Defensive Driver - Completing a course teaching defensive driving skills can save you 5% or more if your company offers it.
  • Early Signing - Some insurance companies reward drivers for signing up prior to your current policy expiration. This can save 10% or more.
  • Good Student - This discount can get you a discount of up to 25%. The discount lasts until age 25.
  • New Vehicle Savings - Buying coverage on a new vehicle can cost up to 25% less since new cars are generally safer.
  • Federal Employees - Employees or retirees of the government can save as much as 8% depending on your company.
  • Passive Restraint Discount - Vehicles equipped with air bags or motorized seat belts may earn rate discounts of 20% or more.

As a disclaimer on discounts, some of the credits will not apply to the entire policy premium. Most only apply to individual premiums such as liability and collision coverage. So despite the fact that it appears all the discounts add up to a free policy, auto insurance companies aren't that generous.

To choose insurers offering auto insurance discounts in Maine, click here.

Are auto insurance companies telling the truth?

21st Century, Allstate and State Farm constantly bombard you with ads on TV and radio. All the companies have a common claim about savings if you switch to them. How does each company say the same thing?

All companies have a certain "appetite" for the type of driver that makes them money. An example of a profitable customer might be profiled as a mature driver, a clean driving record, and has great credit. A propective insured that hits that "sweet spot" is entitled to the best price and most likely will save when switching.

Consumers who don't qualify for these standards must pay higher prices and this can result in business not being written. Company advertisements say "customers that switch" not "people who quote" save money. That is how companies can truthfully advertise the savings. This illustrates why you should quote coverage with many companies. It's not possible to predict which company will give you the biggest savings.

How to know if you need help

When buying proper insurance coverage for your vehicles, there isn't really a single plan that fits everyone. Everyone's needs are different.

These are some specific questions may help highlight whether your personal situation would benefit from professional advice.

  • Should I have combined single limit or split liability limits?
  • Does my car insurance cover rental cars?
  • Should I buy only the required Maine minimum liability coverage?
  • Can I still get insurance after a DUI?
  • Am I covered if I drive in a foreign country?
  • Can I rate high risk drivers on liability-only vehicles?

If you can't answer these questions, you may need to chat with an agent. To find an agent in your area, fill out this quick form.

Additional Maine consumer information

Even more information is available at the Maine Bureau of Insurance website. Maine drivers can discover disciplinary actions, learn about specific coverages, and file complaints about a company.

Other informative sites include this resource for Maine auto insurance prices and this link which helps you find a Richmond agent.

Maine auto insurance

Do the work, save more money

Cheap auto insurance is available on the web and with local Richmond insurance agents, and you need to price shop both in order to have the best price selection to choose from. There are still a few companies who do not offer online price quotes and usually these smaller companies provide coverage only through local independent agents.

Throughout this article, we presented a lot of techniques to save on auto insurance. The key thing to remember is the more companies you get rates for, the better likelihood of reducing your rate. Drivers may discover the best price on auto insurance is with a small local company.

As you prepare to switch companies, make sure you don't buy poor coverage just to save money. There are a lot of situations where someone dropped comprehensive coverage or liability limits to discover at claim time that the small savings ended up costing them much more. The proper strategy is to buy enough coverage at a price you can afford while not skimping on critical coverages.