Easy Ways to Save Money on Richmond Auto Insurance

If you are a novice to online auto insurance shopping, it's easy to get overwhelmed by the sheer number of auto insurance companies offering coverage in Richmond.

It's important to do rate comparisons periodically because prices are constantly changing. Even if you got the best price a year ago you can probably find a better price now. Forget anything you know (or think you know) about auto insurance because you're about to learn the tricks you need to know to properly buy coverages while reducing your premium.

Pricing affordable protection in Richmond is quite easy. Essentially everyone who has to buy auto insurance stands a good chance to be able to save money. Nevertheless, Minnesota drivers do need to know how insurance companies price insurance differently and apply this information to your search.

Why some people pay less for insurance in Richmond

Consumers need to have an understanding of the factors that help determine the price you pay for auto insurance. When you know what positively or negatively determines base rates allows you to make educated decisions that may reward you with better auto insurance rates.

Do men or women drive better? - Statistics show women tend to be less risk to insure than men. However, this does not mean women are better drivers. Men and women cause accidents in similar percentages, but the males have costlier accidents. They also get more serious tickets such as DWI and reckless driving. Male drivers age 16 to 19 are the most expensive to insure and are penalized with high auto insurance rates.
Careful drivers pay lower rates - Just one moving violation can increase rates twenty percent or more. Good drivers get better rates compared to drivers with tickets. Drivers who have flagrant citations like DWI, reckless driving or hit and run convictions may need to file a proof of financial responsibility form (SR-22) with their state DMV in order to keep their license.
Where you live is a factor - Living in a small town can be a good thing when insuring your vehicles. Urban drivers regularly have much more traffic and longer commute times. Fewer people means fewer accidents.
What are your deductibles? - Physical damage coverage, also known as collision and other-than-collision, is used to repair damage to your car. Examples of covered claims could be collision with another vehicle, collision with an animal, and burglary. The deductibles are how much you are required to spend in the event of a claim. The higher the amount you're willing to pay, the lower your rates will be.

More discounts equal less premium

Insuring your vehicles can cost a lot, but you may find discounts to reduce the price significantly. Some discounts apply automatically when you quote, but less common discounts must be specifically requested prior to getting the savings.

Accident Forgiveness - Some insurance companies allow you one accident before hitting you with a surcharge as long as you don't have any claims for a certain period of time.
Good Student - This discount can save 20 to 25%. This discount can apply well after school through age 25.
Bundle and Save - If you insure your home and vehicles with the same insurance company you may earn 10% to 20% off each policy.
Multiple Vehicles - Having multiple vehicles with the same company can get a discount on all vehicles.
Driver Safety - Taking a course in driver safety can save you 5% or more if your company offers it.
Passive Restraints - Factory air bags or motorized seat belts can receive discounts of up to 25% or more.
Anti-theft System - Vehicles with anti-theft systems are stolen less frequently and earn discounts up to 10%.
Early Switch Discount - Some companies give discounts for switching policies prior to your current policy expiration. It's a savings of about 10%.

Consumers should know that some credits don't apply to the entire policy premium. Some only reduce specific coverage prices like liability, collision or medical payments. So even though it sounds like you could get a free auto insurance policy, companies don't profit that way. Any qualifying discounts will help reduce your premiums.

To choose companies who offer auto insurance discounts in Minnesota, click here.

Switch companies and save? Really?

Auto insurance companies such as State Farm, GEICO and Progressive continually stream ads in print and on television. They all seem to have a common claim of big savings after switching to them. But how can every company make almost identical claims? It's all in the numbers.

Different companies have a certain "appetite" for the type of driver that makes them money. For example, a desirable insured could possibly be over the age of 50, a clean driving record, and has excellent credit. A customer getting a price quote that hits that "sweet spot" will get very good rates and therefore will save a lot of money.

Potential customers who do not match this ideal profile will have to pay a higher premium and this can result in the driver buying from a lower-cost company. The ads say "customers who switch" not "everyone that quotes" save money. That is how insurance companies can confidently make those claims.

Because of the profiling, you should get a wide range of price quotes. It's impossible to know which company will have the lowest rates.

It's not one size fits all

When buying the right insurance coverage for your vehicles, there really is no cookie cutter policy. Your needs are not the same as everyone else's.

Here are some questions about coverages that may help highlight if you may require specific advice.

Does my policy cover me when driving someone else's vehicle?
Should I buy only the required Minnesota minimum liability coverage?
What are the best liability limits?
Why am I required to buy high-risk coverage?
Am I covered when driving on a suspended license?
Does my personal auto insurance policy cover using my vehicle for business use?

If you can't answer these questions but you think they might apply to your situation then you might want to talk to an agent. If you don't have a local agent, simply complete this short form.

Additional auto insurance information can be found on the Minnesota Department of Commerce website found here. Minnesota consumers can learn about insurance regulations, file complaints about a company, and view agent and company licensing information.

Other informative sites include this site for Minnesota auto insurance information and see this list of insurance agents in Richmond.

Do the work, save more money

Cost effective auto insurance can be purchased online and with local Richmond insurance agents, and you should be comparing both to have the best rate selection. Some companies do not offer online price quotes and most of the time these regional insurance providers sell through independent agents.

You just read a lot of ways to save on auto insurance. The most important thing to understand is the more rate comparisons you have, the better your comparison will be. You may even discover the biggest savings come from a small mutual company.

While you're price shopping online, don't be tempted to buy poor coverage just to save money. In many cases, someone dropped physical damage coverage only to discover later they didn't purchase enough coverage. Your aim should be to find the BEST coverage at the best price.