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

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Trust us when we tell you there are lots of people in the same boat.

Because there are so many options when it comes to auto insurance, it can be diffult for consumers to locate the cheapest provider.

It's important to price shop coverage at least once a year since insurance rates are constantly changing. Despite the fact that you may have had the best deal a year ago you will most likely find a better rate today. So block out anything you think you know about auto insurance because it's time to teach you the only way to lower your annual insurance bill.

Are you getting all your discounts?

Car insurance can cost a lot, buy you may qualify for discounts to cut the cost considerably. Larger premium reductions will be automatically applied at quote time, but lesser-known reductions have to be specifically requested in order for you to get them.

Passive Restraint Discount - Vehicles with factory air bags and/or automatic seat belt systems can receive discounts of 20% or more.
Driver Safety - Taking part in a course teaching defensive driving skills could possibly earn you a 5% discount if you qualify.
Resident Student - Youth drivers who live away from home and do not have access to a covered vehicle can be insured at a reduced rate.
Multi-policy Discount - If you have multiple policies with one insurance company you may save approximately 10% to 15%.
No Claims - Drivers with accident-free driving histories can earn big discounts compared to drivers who are more careless.
Driver's Ed - Make teen driver coverage more affordable by requiring them to take driver's ed class if it's offered in school.

A little note about advertised discounts, some credits don't apply the the whole policy. Most only cut individual premiums such as medical payments or collision. So when it seems like having all the discounts means you get insurance for free, you won't be that lucky. Any amount of discount will help reduce the cost of coverage.

How can State Farm and Allstate save drivers who switch?

Companies like State Farm and Allstate continually stream ads on television and other media. All the ads have a common claim about savings after switching your policy. But how can every company say the same thing?

All the different companies are able to cherry pick for the right customer that earns them a profit. An example of a preferred risk might be profiled as a mature driver, has no tickets, and has excellent credit. A propective insured that hits that "sweet spot" will qualify for the lowest rates and as a result will probably save a lot of money.

Potential insureds who are not a match for this ideal profile will be charged more money and this can result in business not being written. The ad wording is "customers that switch" not "everybody who quotes" save that kind of money. That's the way companies can truthfully make those claims.

That is why you should get quotes from several different companies. It's not possible to predict which auto insurance company will have the lowest rates.

Find out more about auto insurance

Additional information is available on the website for the Iowa Insurance Division located here. Iowa drivers can file complaints about a company, discover disciplinary actions, read enforcement actions against agents and companies, and read consumer alerts.

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

Shop smart and save

Throughout this article, we presented a lot of ways to reduce auto insurance prices online. The most important thing to understand is the more you quote, the higher your chance of finding lower rates. Consumers could even find that the best price on auto insurance is with a small local company. Regional companies may cover specific market segments cheaper than the large multi-state companies such as .

Cheaper auto insurance can be bought on the web in addition to many Sergeant Bluff insurance agents, and you need to price shop both in order to have the best chance of saving money. Some companies do not provide you the ability to get quotes online and many times these smaller companies only sell through independent insurance agents.

While you're price shopping online, do not buy lower coverage limits just to save a few bucks. There have been many cases where an insured dropped comprehensive coverage or liability limits to discover at claim time they didn't purchase enough coverage. Your goal should be to purchase a proper amount of coverage at a price you can afford, not the least amount of coverage.