Auto Insurance in Phoenix – Six Ways to Save Money

Auto Insurance in Phoenix – Six Ways to Save Money

If shopping for auto insurance online is new to you, it’s easy to be confused by the hoards of companies competing for business in Phoenix.

It’s important to take a look at other company’s rates yearly because prices change frequently. Just because you had the best price six months ago there may be better deals available now. Forget anything you know (or think you know) about auto insurance because you’re about to find out the right way to reduce your cost while improving coverage.

If you have a current auto insurance policy or need a new policy, you can follow these tips to find the best rates and save money. Finding the lowest cost auto insurance coverage in Phoenix is not that difficult. Arizona consumers only need an understanding of the best way to compare rates online.

Free Phoenix Auto Insurance Quotes

Shopping for lower auto insurance rates can be a lot of work if you don’t utilize the best way to get rate quotes. You could waste time talking to agents in Phoenix, or you could use online quoting to maximize your effort.

All the larger companies belong to an insurance system where insurance shoppers submit their information once, and each participating company can give them a price for coverage. This system prevents you from having to do form submissions for each company.

To enter your information into the quoting system, click here to start a free quote.

The one downside to using this type of system is you are unable to specify the providers you will receive quotes from. If you would rather choose specific insurance companies to compare we put together a list of companies who write auto insurance in Arizona. View list of Arizona insurance companies.

Which method you use is up to you, but make sure you use the exact same information for each comparison quote. If you have different liability limits it’s not possible to make a fair comparison in Phoenix.

Why your price might be higher

Smart consumers have a good feel for the rating factors that help determine the price you pay for auto insurance. Understanding what impacts premium levels empowers consumers to make smart changes that can help you get big savings.

Policy add-ons can waste money – There are a ton of additional coverages you can purchase on your auto insurance policy. Coverages like rental car reimbursement, better glass coverage and additional equipment coverage may be wasting your money. These may sound like a good investment initially, but now you might not need them so get rid of them and save.

Do men or women drive better? – Statistics show that men are more aggressive behind the wheel. However, this does not mean women are BETTER drivers than men. They both are in accidents in similar percentages, but men have costlier accidents. Men also have more aggressive citations such as DWI and reckless driving. Youthful male drivers are the most expensive to insure and therefore are the most expensive to insure.

Proper usage rating affects rates – Driving more miles each year the higher your rates will be. Almost all companies apply a rate based upon how you use the vehicle. Autos not used for work or commuting qualify for better rates than vehicles that are driven to work every day. Ask your agent if your auto insurance coverage is showing the proper vehicle usage.

Big city or small town – Living in less populated areas has it’s advantages when insuring your vehicles. Fewer people means a lower chance of having an accident. Urban drivers regularly have congested traffic and longer commute times. Higher commute times can result in more accidents.

Multi-policy discounts can save money – Many auto insurance companies give discounts to customers who consolidate policies with them. It’s known as a multi-policy discount. This can amount to ten or even up to twenty percent in some cases. Even if you’re getting this discount it’s still a good idea to compare other company rates to verify if the discount is saving money.

Poor driving leads to higher costs – Even a single moving violation can bump up the cost forty percent or more. Drivers who don’t get tickets get better rates compared to drivers with tickets. Drivers who get flagrant violations like DUI or reckless driving may be required to submit a SR-22 form with their state DMV in order to keep their license.

Do you qualify for these six discounts?

Companies offering Phoenix auto insurance quotes do not advertise every available discount in an easy-to-find place, so we researched both well-publicized and also the lesser-known ways to save on auto insurance. If they aren’t giving you every credit you qualify for, you are throwing money away.

  • Student Driver Training – Make teen driver coverage more affordable by requiring them to take driver’s ed class if it’s offered in school.
  • Multiple Vehicles – Buying coverage for multiple vehicles on one policy can get a discount on all vehicles.
  • Driver Safety – Taking part in a course in driver safety can save you 5% or more if you qualify.
  • Braking Control Discount – Cars that have steering control and anti-lock brakes can reduce accidents and therefore earn up to a 10% discount.
  • E-sign – A handful of insurance companies will discount your bill up to fifty bucks for buying your policy on their website.
  • Seat Belts Save more than Lives – Using a seat belt and requiring all passengers to use their safety belts can save up to 15% off your PIP or medical payments premium.

Keep in mind that most credits do not apply to the entire policy premium. Some only reduce specific coverage prices like liability, collision or medical payments. Even though it may seem like you could get a free auto insurance policy, auto insurance companies aren’t that generous.

Do you really save 40% when you switch?

Arizona consumers get pounded daily by advertisements for cheaper car insurance from the likes of GEICO, State Farm and Progressive. All the ads make the same claim about savings after switching your coverage to them.

How do they all make almost identical claims? It’s all in the numbers.

All the different companies have a certain “appetite” for the type of customer that earns them a profit. For example, a preferred risk could possibly be between 30 and 50, a clean driving record, and chooses high deductibles. A customer getting a price quote who matches those parameters receives the best rates and as a result will probably save when switching.

Consumers who don’t meet the “perfect” profile will be charged a higher premium which leads to the driver buying from a lower-cost company. Company advertisements say “customers who switch” not “everybody who quotes” save that much money. That is how companies can truthfully advertise the savings. That is why drivers must get quotes from several different companies. You cannot predict which auto insurance company will have the lowest rates.

Smart consumers save more

When trying to cut insurance costs, it’s very important that you do not skimp on critical coverages to save a buck or two. There have been many cases where consumers will sacrifice uninsured motorist or liability limits only to find out that they should have had better coverage. Your aim should be to purchase plenty of coverage at the best price, not the least amount of coverage.

Affordable auto insurance is available online as well as from independent agents in Phoenix, so you should be comparing quotes from both so you have a total pricing picture. Independent insurance agents work with many regional insurance providers that don’t always offer you the ability to get quotes online.

You just learned many ways to shop for auto insurance 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 lowest priced auto insurance comes from the smaller companies.