Is Your Salem, NH Auto Insurance Too High?

People new to shopping for insurance online may find shopping for the cheapest Salem auto insurance nearly impossible.

You should make it a habit to do rate comparisons on a regular basis because insurance rates change quite often. Just because you had the lowest rates six months ago you may be paying too much now. There is a lot of wrong information about auto insurance on the web, but we’re going to give you some guaranteed methods to quit paying high auto insurance rates.

Don’t miss out on these money-saving discounts

Companies that sell car insurance don’t list every discount in an easy-to-find place, so we break down some of the best known as well as the least known savings tricks you should be using.

• Claim Free – Good drivers with no accidents can earn big discounts compared to accident-prone drivers.
• Drivers Ed for Students – Require your teen driver to successfully complete driver’s ed class if it’s offered in school.
• Driver Safety – Taking a driver safety course could cut 5% off your bill if your company offers it.
• Anti-theft Discount – Cars that have factory anti-theft systems prevent vehicle theft and therefore earn up to a 10% discount.
• Organization Discounts – Participating in certain professional organizations could qualify you for a break on auto insurance.
• Sign Early and Save – Some insurance companies reward drivers for buying a policy before your current expiration date. It can save you around 10%.
• Multiple Vehicles – Having multiple vehicles on one policy may reduce the rate for each vehicle.
• Seat Belts Save more than Lives – Buckling up and requiring all passengers to use their safety belts can save up to 15% off your medical payments premium.

As a disclaimer on discounts, most of the big mark downs will not be given the the whole policy. Most cut individual premiums such as medical payments or collision. Just because you may think you can get free auto insurance, it doesn’t quite work that way.

For a list of companies with discount auto insurance rates in New Hampshire, follow this link.

Components of your insurance rates

Consumers need to have an understanding of the rating factors that play a part in calculating your auto insurance rates. Having a good understanding of what determines base rates empowers consumers to make smart changes that can help you get better auto insurance rates.

Shown below are a few of the “ingredients” used by your company to calculate your rates.

• More people means more accidents – Choosing to live in a small town has it’s advantages when it comes to auto insurance. Fewer drivers means a lower chance of having an accident and a lower car theft rate. Drivers in populated New Hampshire areas have to deal with congested traffic and much longer commute distances. More time on the road means more change of being in an accident.
• Type of vehicle determines base rates – The type of vehicle you are insuring makes a substantial difference in how high your rates are. The most favorable rates tend to be for economy passenger cars, but the cost you end up paying is determined by many additional factors.
• Your car’s features help determine rates – Driving a car with anti-theft technology or alarm system can save you a little every year. Theft prevention devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all hinder your vehicle from being stolen.
• Bump up deductibles to save – Coverage for physical damage, otherwise known as comp (or other than collision) and collision, is used to repair damage to your car. Examples of covered claims could be collision with another vehicle, collision with an animal, and windstorm damage. Your deductibles are how much you are willing to pay if you file a covered claim. The higher the amount you’re willing to pay, the less your auto insurance will be.

Beware of misleading auto insurance ads

Auto insurance companies such as 21st Century, Allstate and State Farm continually stream ads on television and other media. They all seem to have a common claim of big savings after switching to them. But how can every company say the same thing?

Different companies have a certain “appetite” for the type of customer they prefer to insure. A good example of a driver they prefer could be between 25 and 40, a clean driving record, and has a high credit rating. A customer who fits that profile will qualify for the lowest rates and as a result will probably save when switching.

Drivers who don’t measure up to the requirements will be charged more money which leads to business going elsewhere. The ads state “customers that switch” but not “drivers who get quotes” save that much money. That’s the way insurance companies can confidently claim big savings. That is why drivers should compare many company’s rates. It’s just too difficult to predict which auto insurance company will give you the biggest savings.

To find out more about New Hampshire auto insurance

More detailed New Hampshire auto insurance information is located at the New Hampshire Insurance Department website. New Hampshire consumers can find a variety of consumer forms, read state legal mandates and laws, and learn about specific coverages.

Additional helpful sites include III.org’s auto insurance page and this list of insurance agents in Salem, NH.

Summing up your auto insurance search

Consumers leave their current company for a number of reasons such as policy non-renewal, poor customer service, questionable increases in premium and lack of trust in their agent. Regardless of your reason, switching companies is easier than you think.

We’ve covered a lot of information how to lower your auto insurance rates. The most important thing to understand is the more you quote, the more likely it is that you will get a better rate. Drivers may discover the lowest premiums are with an unexpected company.

While you’re price shopping online, don’t be tempted to skimp on coverage in order to save money. There are a lot of situations where consumers will sacrifice collision coverage only to regret that saving that couple of dollars actually costed them tens of thousands. Your strategy should be to buy a smart amount of coverage at an affordable rate while not skimping on critical coverages.