Comparison Shop Southfield Auto Insurance Prices With These Methods
Searching for cheap Southfield auto insurance on the web can be intimidating for people who are new to online price comaprisons. Since there are so many companies in the marketplace, how can you have a chance to compare them all to find the best pricing?
It's important to check auto insurance prices on a regular basis because insurance rates are constantly changing. If you had the best price a few years ago a different company probably has better rates today. Ignore everything you know about auto insurance because you're about to find out the fastest and easiest way to find the best coverage while lowering your premiums.
Are you getting all your discounts?
The price of auto insurance can be rather high, but there are discounts available that can drop the cost substantially. Most are applied at the time of quoting, but a few need to be manually applied before you will receive the discount. If you aren't receiving every discount you deserve, you are throwing money away.
- Auto/Life Discount - Some companies give better rates if you take out a life insurance policy as well.
- Own a Home - Owning a house in Southfield may earn you a small savings because of the fact that having a home is proof that your finances are in order.
- Accident Free - Drivers who don't have accidents can save substantially as compared to drivers who are more careless.
- Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to complete a driver education course in high school.
- Defensive Driving Course - Completing a course in driver safety could cut 5% off your bill if you qualify.
Keep in mind that most discount credits are not given to all coverage premiums. Most only cut the price of certain insurance coverages like collision or personal injury protection. Even though it may seem like you can get free auto insurance, it just doesn't work that way. But any discount will reduce the cost of coverage.
What determines how much you pay?
Smart consumers have a good feel for the rating factors that come into play when calculating the price you pay for auto insurance. Having a good understanding of what influences your rates allows you to make educated decisions that may reward you with lower auto insurance prices.
The list below includes a few of the "ingredients" companies use to determine rates.
- Lower miles equals lower premium - The more you drive in a year's time the more you will pay for auto insurance. Most companies apply a rate based on their usage. Autos left parked in the garage qualify for better rates than vehicles that are driven to work every day. Make sure your auto insurance policy is rated on the correct driver usage.
- High deductibles save money - Insurance for physical damage to your car, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. Examples of covered claims could be running into the backend of another car, damage caused by hail, and rolling your vehicle. Physical damage deductibles are how much you are required to spend out-of-pocket before your auto insurance pays a claim. The higher the amount you're willing to pay, the bigger discount you will receive.
- Rates may be higher depending on your occupation - Jobs such as lawyers, executives and dentists tend to pay the highest average rates in part from high stress and lengthy work days. Other occupations such as pilots, historians and the unemployed have the lowest average rates.
- Save money with special equipment - Purchasing a vehicle with anti-theft technology or alarm system can help bring down rates. Anti-theft devices such as GM's OnStar, tamper alarm systems and vehicle immobilizers all aid in stopping your vehicle from being stolen.
- Add-on coverages can add up - There are a lot of add-on coverages that you can buy on your auto insurance policy. Insurance for rental car reimbursement, towing coverage and motor club memberships may be wasting your money. These coverages may sound good when talking to your agent, but if you don't need them eliminate the coverages to reduce your premium.
- Performance influences rates - The performance of the vehicle you own makes a substantial difference in how high your rates are. Low performance passenger vehicles generally have the cheapest insurance rates, but there are many factors that impact the final cost.
How can GEICO, State Farm and Progressive save drivers who switch?
Michigan consumers get pounded daily by advertisements for car insurance savings by companies like GEICO, State Farm and Progressive. They all seem to make the same claim that you can save if you move to them.
How can each company make almost identical claims? This is how they do it.
All companies have a preferred profile for the type of driver that earns them a profit. For example, a desirable insured could possibly be over the age of 40, insures multiple vehicles, and has a short commute. A driver who matches those parameters will qualify for the lowest rates and as a result will probably save when they switch companies.
Potential insureds who are not a match for the requirements will have to pay more money which leads to the driver buying from a lower-cost company. The ad wording is "drivers who switch" not "everybody who quotes" save money. This is how insurance companies can make the claims of big savings.
Because of the profiling, drivers should get as many comparisons as possible. It is impossible to predict which insurance companies will fit your personal profile best.
More information can be found on the Michigan Office of Financial and Insurance Regulation website. Click here for link. Michigan consumers can file complaints about an insurance agent or broker, report car insurance fraud, and read industry bulletins.
In the end, you save
As you shop your coverage around, it's not a good idea to skimp on coverage in order to save money. In many instances, drivers have reduced physical damage coverage only to regret at claim time that saving that couple of dollars actually costed them tens of thousands. The ultimate goal is to purchase a proper amount of coverage for the lowest price.
Affordable auto insurance is definitely available online and with local Southfield insurance agents, and you need to comparison shop both to have the best chance of lowering rates. Some insurance providers do not offer you the ability to get quotes online and most of the time these regional insurance providers sell through independent agents.
Insureds who switch companies do it for any number of reasons including delays in paying claims, an unsatisfactory settlement offer, high rates after DUI convictions and even extreme rates for teen drivers. Regardless of your reason for switching companies, switching auto insurance companies is less work than it seems.