Everything You Need To Know About Insurance Discounts
We all have this fond idea of money and what it can do for us. We understand that everyone needs it to survive. But surviving isn’t the answer, thriving is. When it comes to getting car insurance, you should know where your money is going and how it’s working for you. Insurance is one of the largest and most important bills you pay each month. From cheap car insurance to insuring your home and even medical costs, your money should be working for you. But where do you start to look for the best cheap insurance around? Money seems to be the narrative when it comes to talking insurance. Getting to know yourself, your family and the needs they have is a good start. How much insurance are you looking for? How much time do you have to look for insurance?
The best car insurance in the world doesn’t necessarily mean the most expensive. In fact, there are a variety of insurance carriers that have much lower pricing. Yet some people prefer to stay with the insurance company they have even if they are paying more. We are a product of habit. Why do we stay in anything that isn’t working? From relationships to insurance, we stay because it’s what is familiar. But let familiarity be a thing of the past. You need more than what your insurance company is currently offering. How can you save even more money on your car insurance? Let me show you how.
Facts Vs. Fiction
The truth is that everyone needs car insurance. Depending on what state you are in, the requirements are different. Y0u should know what the laws of your state are but if you don’t let’s take a look at some examples:
California: When purchasing insurance in the state of California, you will need the minimum coverage. Here is what that includes:
- Bodily Injury Liability Limits: $30,000 per occurrence/ $15,000 per person
- Property Damage Liability Limits: $5,000 per occurrence
The above requirements do not protect you and your own vehicle. They only cover the costs of the other party involved in an accident. For you and your own vehicle to be covered, you will need more.
- Florida state is a “no-fault” state. This means that an individual’s insurance company covers their losses regardless of fault.
- Florida requires a minimum of $10,000 for Personal Injury Protection.
- Florida also requires a minimum of $10,000 Property Damage Liability.
- The mandatory minimum for bodily injury coverage per person in Nevada is $15,000.
- Minimum for bodily injury coverage per accident in Nevada is $30,000.
- The mandatory minimum for property damage coverage in Nevada is $10,000
- The state mandates that a “Basic Policy” be available to drivers who are facing financial hardship (usually reserved for young drivers), and includes:
- $15,000 of Personal Injury Protection
- $5,000 Property Damage liability
- This policy is the typical split-limit liability policy and includes the following minimum coverages:
- Bodily Injury liability: $15,000 per person, $30,000 per accident
- Property Damage liability: $5,000
- Personal Injury Protection: $15,000 per person or accident
These are just a few examples. When you are searching for the cheapest car insurance in your state, make sure you know your rights. If you own a vehicle outright, you only need to purchase the minimum amount of car insurance for that state. If you have a loan or lease out on the vehicle you drive, your insurance costs will be more because you need more insurance. The banks look at this as collateral. Your car will need to be insured for the full amount.
What Insurance Company Should I Choose?
This is a question that everyone wants the answer to. But which insurance company you go with is actually very personal. Every insurance company has something different to offer. For example, if you love great customer service you might want to try State Farm where you have your own personal agent. This might cost you a little more, but it gives people a good feeling knowing that they have personalized attention. Others want 24/7 customer service at their fingertips. This is something that a personal agent cannot give you.
But GEICO and Progressive can. If you get into an accident at 2am, you bet you can call their customer service line and there will be someone there to guide you. Another factor that many people look for in an insurance company is competitive rates. Of course this is a huge reason people switch insurance companies. Many companies will promise you a better rate if you switch over. This can be true and many times your online quotes will be cheaper.
Getting The Best
Getting the best car insurance quote around means doing a little shopping. Shopping online might seem bleak, but pretend this is your homework. Homework that could save you hundreds of dollars annually on car insurance. If you are a stickler for saving a dime, then comparing rates online should be a no-brainer. There are other ways to save of course. Paying a one-time fee for the entire yearly cost of your insurance is one way. You could save anywhere from $40 a year to $200 and beyond. Insurance companies like rewarding those who pay on time and early. Another way to save is by bundling your policies. If you also have life insurance and renters insurance, for example, you can bundle these with car insurance and save.
Here is the break down of some insurance companies and what they have to offer.
- If you want the cheapest car insurance look at these: GEICO, Progressive, Liberty Mutual and Mercury Insurance.
- If you want the best car insurance look at these: All State, State Farm, Nationwide
- Car insurance with great customer service: State Farm, Travelers, American Family
- The best car insurance if you have had a DUI: State Farm, USAA, and Progressive
- The easiest insurance companies to get ahold of 24/7: GEICO, Progressive, AAA
This is only our interpretation, but statistics and ratings show that these above insurance companies can get you where you need to go. It just depends on where that is. The best way to filter through all the “hype” is to talk with a broker. Cheap Insurance has been helping people find great car insurance for over 40 years. Get the quotes for car insurance you want today.
The Best Place To Find A Quote
Online is your best bet when searching for any sort of quote. But when it comes to buying insurance, searching online means you will not only save time but you could save money. Online quotes can be found from websites such as Cheap Insurance or simply by googling your needs. You could ask something like “what are the best car insurance quotes in California?” and you will have millions of results. But going through a reputable brokerage website is going to not only summarize your needs, they will get you the deal you are looking for. How easy is it to get an insurance quote?
- Choose your product: Auto, Health, Home, Life, Renter, or Motorcycle
- Enter your zip code
- Get your quote in minutes.
When you find the coverage you like, you can purchase it online. From the comfort of your home you can have a policy delivered to your e-mail inbox within minutes. No more driving to an office, waiting you turn for an agent to assist you, and then more waiting while the paperwork is completed. Now, it only takes three steps:
- Find the rate you feel comfortable paying.
- Tell the broker what you are looking for.
- They get you the policy you need.
How Can I Get Discounts?
Everyone wants to know how to get discounts on car insurance. First of all, you should know that there are many to choose from. But insurance companies look at an abundance of factors when deciding your rates. For the most part, if you are a safe driver, who has never had a huge violation and are over the age of 25, you will get a pretty good rate on car insurance. Where you live, what kind of car you drive and how long you have been a safe driver are other factors to keep in mind. Comparing rates based on discounts can be done online but it might be faster to talk If you aren’t happy with your quote and want to know how you can save even more, check out these discounts.
Discounts you should ask about:
- Discounts for safety courses taken- taking a safety course can help your premiums go down because it proves that you are a safe driver.
- Marital discounts
- Good driver discounts- having a driving record which shows safe driving and responsible skills will only help you when shopping for insurance.
- Multi-car discounts- Not only having multiple cars can help, but the types of cars your family drives could save you.
- Multi-policy discounts- You may want to consider getting homeowners insurance, motorcycle insurance, car insurance, SR22 insurance and much more from the same insurance company.
- Association discounts
- Education discounts
- Occupation discounts- Depending on what kind of job you have and how far you need to commute for that job could make a difference in your policy choice and price.
- Excess vehicle discounts
- Mileage discounts- Keeping low miles on your vehicle should keep your premiums lower.
When Will I Pay More For Car Insurance?
There are definitely times when your car insurance rates will go up. This could be because you are adding a teen driver to your insurance policy. Teens are more expensive to insure because they are more likely to get into an accident. This is because this age group has not been driving long enough to show that they are responsible on the road. When most drivers turn 25, their rates start to drop. Teens not only have a higher risk of getting into a crash, but when they do, your rates can sky rocket. Make sure your vehicle has enough coverage such as collision and comprehensive insurance.
If you are a young, single male you are more likely to have a high rate on car insurance. These facts are all based upon statistics and it is these statistics that the insurance companies will be looking at. There are some things you can do to help. Drive responsibly – Speeding tickets, accidents, and other traffic violations will affect your rates. Drive a safe vehicle – Driving a car with standard safety features such as anti-lock brakes and airbags will reduce your risk of accident and injury and, therefore, your cost. Do not drink and drive. Having a DUI on your record is a red stain for about ten years. Make sure you and everyone in your car is sober any time you get behind the wheel.
Some falsehoods when it comes to looking for auto insurance:
Red cars cost more to insure. This is not true. Insurance agencies don’t even ask or look at the color of your vehicle when calculating your insurance premium rate. Cheap cars cost less to insure. Not always. When calculating insurance premiums, agencies ask for the make, model, year, body type, engine size and year of your vehicle. You could have a 20-year-old car with a V8 engine that costs more to insure than a 5-year-old car with a 4 cylinder engine. Often times collision is cheaper for older cars because their value is lower than those of newer cars.
If a friend borrows my car, they are liable for the accident; not me. No. Unfortunately you are ultimately held accountable for any accident caused by your vehicle regardless of who is driving. However, it is possible that the driver’s insurance would be responsible for some of the damages. If your insurance premium doesn’t cover all the expenses the next in line would be the driver’s to pick up the rest of the expenses.
My credit score doesn’t affect my rate. Your credit score does in fact reflect who you are in a way. To the insurance company your credit equals responsibility. This is state specific, but most states will use an ‘insurance score’ based on your credit to determine costs. Your credit score is indicative of how well you pay your monthly payments. The lower the score the higher the premium because most agencies consider it a risk. California, though, does not use credit as a factor for auto insurance.
Agents can’t get me lower prices on auto insurance. Agents can absolutely help you save money on car insurance. Most of the time agents will offer the same premium as direct quotes online; however, speaking with an agent can help you build an insurance plan that works for you. Insurance can be complicated, having someone with whom to discuss concerns can be a very powerful thing.
Which car insurance company has the best rates? That is directly linked to what you are looking for and how you live your life. Using one insurance company at 18 might be great but when you hit 55 you may lean towards another type. Changing cars? look around and see who can beat your current car insurance policy price. Dig in and get to work. Even saving $20 a month can add up in the end.