8 Tricks Proven to Save Money on Auto Insurance Costs in Elgin

8 Tricks Proven to Save Money on Auto Insurance Costs in Elgin

Shopping for affordable Elgin auto insurance on the internet can seem to be rather challenging for consumers new to comparison shopping online. Because there are so many insurers to choose from, how can consumers effectively compare every one to find the best available price?

Smart consumers take time to do rate comparisons at least once a year since insurance rates are rarely the same from one policy term to another. Even if you think you had the best deal two years ago you can probably find a lower rate today. There is too much inaccurate information about auto insurance online, so by reading this article, you’re going to learn some great ways to put money back in your pocket.

If you currently have car insurance, you stand a good chance to be able to lower your premiums substantially using these techniques. This information will instruct you on how to get online quotes and some tricks to saving. But Illinois vehicle owners can benefit from knowing how the larger insurance companies price insurance differently and use this information to your advantage.

These eight discounts can lower your rates

Auto insurance companies do not list all their discounts in an easy-to-find place, so we researched some of the more common as well as the least known ways to save on auto insurance.

  • Federal Employees – Being employed by or retired from a federal job can earn a discount up to 10% depending on your company.
  • Defensive Driver – Successfully completing a course in driver safety could save 5% or more if your company offers it.
  • Safe Drivers – Drivers who don’t get into accidents may receive a discount up to 45% less than their less cautious counterparts.
  • Good Student Discount – This discount can get you a discount of up to 25%. The discount lasts up until you turn 25.
  • E-sign – Certain companies will give a small break for buying a policy and signing up online.
  • Auto/Home Discount – If you have multiple policies with the same insurance company you may save at least 10% off all policies.
  • Clubs and Organizations – Participating in a qualifying organization could qualify you for a break when buying auto insurance.
  • Seat Belts Save more than Lives – Buckling up and requiring all passengers to wear their seat belts can save 10% or more off your medical payments premium.

Consumers should know that many deductions do not apply to the overall cost of the policy. The majority will only reduce the cost of specific coverages such as physical damage coverage or medical payments. So even though it sounds like all the discounts add up to a free policy, companies wouldn’t make money that way.

To choose insurance companies with discount auto insurance rates in Elgin, click here.

Different people need different coverages

When it comes to choosing adequate coverage, there isn’t really a cookie cutter policy. Every insured’s situation is different.

Here are some questions about coverages that might help in determining whether you could use an agent’s help.

  • Do I have coverage when making deliveries for my home business?
  • What if I don’t agree with a claim settlement offer?
  • What happens if I owe more than my vehicle is worth?
  • Does my insurance cover damage caused when ticketed for reckless driving?
  • What is the difference between comprehensive and collision coverage?
  • How can I get high-risk coverage after a DUI?

If it’s difficult to answer those questions but you know they apply to you, you may need to chat with an insurance agent. To find lower rates from a local agent, simply complete this short form.

Beware of misleading auto insurance ads

Auto insurance providers like 21st Century, Allstate and State Farm consistently run television and radio advertisements. They all make the same claim of big savings if you change to their company. How do they all say the same thing?

All the different companies are able to cherry pick for the driver that is profitable for them. For instance, a desirable insured could be between 25 and 40, has no driving citations, and has excellent credit. Any new insured who meets those qualifications is entitled to the best price and is almost guaranteed to save quite a bit of money when switching.car insurance image

Potential customers who don’t measure up to this ideal profile will have to pay a higher premium which leads to business not being written. The ads state “people who switch” not “everyone that quotes” save that much money. This is how insurance companies can make those claims. Because of the profiling, you should get a wide range of price quotes. Because you never know which auto insurance company will fit your personal profile best.

More tips and info about auto insurance can be found at the Illinois Department of Insurance website. Illinois drivers can read industry bulletins, read enforcement actions against agents and companies, and get help finding coverage.

Auto insurance 101

Understanding the coverages of your policy can help you determine the best coverages and the correct deductibles and limits. Policy terminology can be ambiguous and even agents have difficulty translating policy wording.

Comprehensive coverages – Comprehensive insurance will pay to fix damage OTHER than collision with another vehicle or object. A deductible will apply and the remainder of the damage will be paid by comprehensive coverage.

Comprehensive can pay for claims like hail damage, hitting a bird, a broken windshield, damage from getting keyed and damage from a tornado or hurricane. The maximum amount you’ll receive from a claim is the actual cash value, so if the vehicle’s value is low it’s not worth carrying full coverage.

Coverage for liability – This coverage can cover damages or injuries you inflict on other people or property. It protects you from claims by other people, and doesn’t cover your own vehicle damage or injuries.

Liability coverage has three limits: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You might see values of 25/50/25 which means $25,000 in coverage for each person’s injuries, a per accident bodily injury limit of $50,000, and $25,000 of coverage for damaged propery.

Liability insurance covers things such as funeral expenses, loss of income and attorney fees. The amount of liability coverage you purchase is a personal decision, but buy as high a limit as you can afford. Illinois requires drivers to carry at least 20,000/40,000/15,000 but you should think about purchasing higher limits.

Collision coverages – This coverage covers damage to your vehicle from colliding with an object or car. You first must pay a deductible and then insurance will cover the remainder.

Collision can pay for claims like crashing into a building, sideswiping another vehicle, hitting a parking meter and sustaining damage from a pot hole. Paying for collision coverage can be pricey, so consider dropping it from older vehicles. It’s also possible to choose a higher deductible to bring the cost down.

Uninsured and underinsured coverage – This provides protection when other motorists are uninsured or don’t have enough coverage. Covered claims include injuries sustained by your vehicle’s occupants and damage to your vehicle.

Due to the fact that many Illinois drivers carry very low liability coverage limits (20/40/15 in Illinois), their limits can quickly be used up. For this reason, having high UM/UIM coverages should not be overlooked.

Coverage for medical payments – Personal Injury Protection (PIP) and medical payments coverage provide coverage for immediate expenses such as surgery, X-ray expenses, ambulance fees and prosthetic devices. They are often used to fill the gap from your health insurance policy or if you are not covered by health insurance. It covers all vehicle occupants and also covers being hit by a car walking across the street. PIP is not universally available and gives slightly broader coverage than med pay

In conclusion

Cheaper auto insurance can be bought from both online companies and also from your neighborhood Elgin agents, so compare prices from both to have the best rate selection. Some companies may not provide you the ability to get quotes online and these small insurance companies work with independent agents.

As you restructure your insurance plan, don’t be tempted to reduce coverage to reduce premium. In many cases, consumers will sacrifice full coverage and found out when filing a claim they didn’t purchase enough coverage. The proper strategy is to get the best coverage possible at the best price while still protecting your assets.

Consumers leave their current company for a variety of reasons including being labeled a high risk driver, not issuing a premium refund, high rates after DUI convictions or questionable increases in premium. Regardless of your reason for switching companies, switching auto insurance companies is pretty easy and you might even save some money in the process.