Having to pay for overpriced car insurance can overdraw your savings account and force you to make sacrifices. Shopping your coverage around is a smart way to reduce premiums and put more money in your pocket. Drivers have so many insurance companies to insure vehicles with, and although it’s a good thing to be able to choose, it can be more difficult to compare rates.
It’s important to price shop coverage on a regular basis because prices are variable and change quite frequently. Despite the fact that you may have had the best price on Chattanooga car insurance last year there may be better deals available now. So just forget anything you know (or think you know) about car insurance because you’re about to learn one of the best ways to save on car insurance.
Consumers need to have an understanding of the different types of things that come into play when calculating the price you pay for car insurance. When you know what positively or negatively controls the rates you pay allows you to make educated decisions that could result in lower car insurance prices.
The list below includes some of the items companies use to determine premiums.
Getting better car insurance pricing is actually quite simple. The only requirement is to spend a few minutes to get quotes provided by online insurance companies. This is very easy and can be done in just a few minutes using one of these methods.
It’s up to you how you get prices quotes, just make sure you use exactly the same coverage limits and deductibles for every quote you compare. If each company quotes unequal deductibles or liability limits it’s not possible to determine the best price in Chattanooga.
Tennessee drivers constantly see and hear ads that promise big savings by Allstate and Progressive. All the ads have a common claim about savings if you change to their company.
But how can every company say the same thing? It’s all in the numbers.
All companies can use profiling for the type of driver that earns them a profit. For instance, a profitable customer might be profiled as between 30 and 50, is a homeowner, and drives less than 7,500 miles a year. A customer getting a price quote that hits that “sweet spot” will get the preferred rates and most likely will save quite a bit of money when switching.
Consumers who don’t measure up to this ideal profile must pay higher premiums and ends up with the driver buying from a lower-cost company. The ad wording is “customers who switch” not “everybody who quotes” save money. That is how companies can advertise the savings.
This illustrates why you need to compare as many rates as you can. It’s just too difficult to predict which company will have the lowest rates.
Insuring your vehicles can cost a lot, but there are discounts available that many people don’t even know exist. Some trigger automatically at quote time, but less common discounts must be manually applied before you get the savings. If you don’t get every credit available, you’re paying more than you need to.
Consumers should know that most credits do not apply to all coverage premiums. Some only apply to the price of certain insurance coverages like collision or personal injury protection. So even though they make it sound like it’s possible to get free car insurance, car insurance companies aren’t that generous. Any amount of discount will bring down the cost of coverage.
When buying coverage for your vehicles, there really is no one size fits all plan. Every situation is different so your insurance needs to address that. These are some specific questions can aid in determining if your situation would benefit from professional advice.
If you can’t answer these questions, you may need to chat with a licensed insurance agent. If you don’t have a local agent, simply complete this short form or you can go here for a list of companies in your area. It is quick, free and may give you better protection.
Additional information is available on the website for the Tennessee Department of Commerce and Insurance found here. Tennessee drivers can find disaster information, file complaints about a company, find out industry alerts, and learn about insurance regulations.
As you restructure your insurance plan, don’t be tempted to buy poor coverage just to save money. In many instances, consumers will sacrifice comprehensive coverage or liability limits only to discover later that a couple dollars of savings turned into a financial nightmare. Your strategy should be to buy enough coverage for the lowest price, not the least amount of coverage.
Cheaper car insurance can be purchased on the web and with local Chattanooga insurance agents, and you should compare price quotes from both to have the best chance of lowering rates. Some insurance providers do not offer you the ability to get quotes online and most of the time these small insurance companies sell through independent agents.