How to Know You're Throwing Money Away for Auto Insurance in White Marsh

Have you had enough of paying out the nose each month for car insurance? You're in the same situation as millions of other consumers. With consumers having so many online and local companies to choose from, it can be diffult for consumers to find the lowest cost insurance company.

It's important to check auto insurance prices before your policy renews because prices are constantly changing. If you had the lowest rates last year you can probably find a better price now. Starting right now, forget all the misinformation about auto insurance because you're going to get a crash course in the tricks you need to know to save money, get proper coverage and the best rates.

What determines how much you pay?

Consumers need to have an understanding of some of the elements that come into play when calculating the price you pay for auto insurance. When you know what positively or negatively impacts premium levels allows you to make educated decisions that can help you get lower auto insurance prices.

The list below includes a few of the "ingredients" companies use to determine your rates.

Better credit means lower rates - Your credit rating is a large factor in your rate calculation. Drivers with high credit scores tend to file fewer claims and have better driving records than drivers who have lower credit scores. Therefore, if your credit history can use some improvement, you could save money insuring your by improving your rating.
Don't let your coverage lapse - Driving without insurance is a misdemeanor and your next policy will cost more because you let your coverage have a gap. And not only will insurance be more expensive, but being ticketed for driving with no insurance will get you a steep fine or even jail time.You may have to provide proof of insurance in the form of an SR-22 filing with the Maryland DMV.
An active claims history can cost you - Insurance companies in Maryland provide discounts to insureds who file claims infrequently. If you frequently file small claims, you can expect higher rates. Auto insurance is designed for major claims that would cause financial hardship.
Multiple policies with one company can save - The majority of companies give discounts to customers who buy several policies from them, otherwise known as a multi-policy discount. Even if you're getting this discount you may still want to comparison shop to make sure you are getting the best deal. Consumers may find better rates by insuring with multiple companies.
Bump up deductibles to save - Physical damage coverage, termed comprehensive and collision coverage on your policy, protects your car from damage. Examples of covered claims could be colliding with a building, damage caused by hail, and burglary. Your deductibles are the amount of money you are required to spend out-of-pocket in the event of a claim. The higher the amount you're willing to pay, the less your company will charge you for insurance.
Careful drivers pay lower rates - Your driving record has a big impact on rates. Even a single moving violation can increase rates by as much as thirty percent. Good drivers receive lower rates than people who have multiple driving citations. Drivers who get severe violations like DWI, reckless driving or hit and run convictions may be required to file a proof of financial responsibility form (SR-22) with their state DMV in order to drive a vehicle legally.
Lower rates with optional equipment - Driving a car that has an advanced theft prevention system can help lower your rates. Anti-theft devices like GM's OnStar, tamper alarm systems and vehicle immobilizers all hinder your car from being stolen.
With age comes lower rates - Teen drivers in Maryland tend to be less responsible in a vehicle so auto insurance rates are higher. Mature drivers tend to be more responsible, tend to file fewer claims and tend to be better behind the wheel.

Don't pay full price with these discounts

Companies don't list every available discount very well, so we break down both well-publicized and the more hidden auto insurance savings. If you don't get every credit available, you are paying more than you should be.

Air Bag Discount - Vehicles with factory air bags can receive discounts of 20% or more.
Use Seat Belts - Buckling up and requiring all passengers to use their safety belts can save up to 15% on the medical payments or PIP coverage costs.
Employee of Federal Government - Employees or retirees of the government can save as much as 8% with certain companies.
Anti-theft Discount - Anti-theft and alarm systems are stolen less frequently and qualify for as much as a 10% discount.
Homeowners Pay Less - Being a homeowner may trigger a auto insurance policy discount because of the fact that having a home is proof that your finances are in order.
Sign Early and Save - A few companies offer discounts for switching policies prior to your current policy expiration. It can save you around 10%.

A little note about advertised discounts, most of the big mark downs will not be given to the entire cost. Most only reduce the cost of specific coverages such as medical payments or collision. So when the math indicates it's possible to get free car insurance, you won't be that lucky.

To choose providers with the best auto insurance discounts in Maryland, follow this link.

The auto insurance bait and switch

Maryland consumers can't ignore all the ads for the lowest price auto insurance by companies like State Farm and Allstate. All the ads say the same thing about savings if you move to them.

But how can every company make almost identical claims?

All companies can use profiling for the type of driver that makes them money. For example, a preferred risk could possibly be between the ages of 30 and 50, is a homeowner, and drives newer vehicles. A customer getting a price quote who fits that profile will get the preferred rates and therefore will save a lot of money.

Potential insureds who don't measure up to this ideal profile will be charged more money which usually ends up with the driver buying from a lower-cost company. The ads state "people who switch" not "everyone that quotes" save money. That's why companies can truthfully claim big savings. That is why you should compare many company's rates. It's impossible to know the company that will give you the biggest savings.

Even more information can be found at the Maryland Insurance Administration website. Maryland consumers can find out industry alerts, find a variety of consumer forms, download brochures, and read consumer alerts.

Other informative sites include NAIC.org's Understanding your Policy and this directory of White Marsh insurance agents.

Best coverage at the best price

You just read many ways to save on auto insurance. The key concept to understand is the more you quote, the more likely it is that you will get a better rate. Consumers may even find the lowest rates come from an unexpected company. Some small companies may cover specific market segments cheaper as compared to the big name companies such as .

When trying to cut insurance costs, do not buy poor coverage just to save money. There have been many cases where an accident victim reduced uninsured motorist or liability limits only to regret that it was a big mistake. Your goal should be to get the best coverage possible at an affordable rate, not the least amount of coverage.