Overpriced car insurance can overdraw your bank account and make it hard to pay other bills. Shopping your coverage around is a great way to cut your insurance bill. With consumers having so many companies to choose from, it can be impossible to pick the lowest price insurance company.
It’s important to do rate comparisons before your policy renews because insurance rates tend to go up over time. Just because you found the lowest price two years ago other companies may now be cheaper. Forget anything you know (or think you know) about car insurance because I’m going to let you in on the secrets to the easiest way to lower your rates without sacrificing coverage.
Rate influencing factors
Smart consumers have a good feel for the different types of things that come into play when calculating your car insurance rates. When you know what positively or negatively impacts premium levels helps enable you to make changes that could result in lower car insurance prices.
- Never allow your policy to lapse – Allowing your coverage to lapse is a fast way to trigger a rate increase. Not only will rates go up, getting caught without coverage can result in a steep fine or even jail time.
- Do you know you’re credit rating? – Having a bad credit score is a huge factor in determining what you pay for car insurance. People with high credit ratings tend to be more responsible as compared to drivers with lower credit ratings. If your credit score is low, you could be paying less to insure your by improving your rating.
- Don’t skimp on liability – Your policy’s liability coverage is the protection in the event that a jury decides you are liable for personal injury or accident damage. Liability insurance provides legal defense up to the limits shown on your policy. Liability is cheap as compared to coverage for physical damage, so buy as much as you can afford.
- Your age impacts your rates – More mature drivers are more cautious drivers, tend to file fewer claims and get fewer tickets. Youthful drivers tend to be careless and easily distracted when driving therefore car insurance rates are much higher.
- Bump up deductibles to save – Coverage for physical damage, also known as collision and other-than-collision, protects your car from damage. Examples of covered claims are colliding with a building, damage caused by hail, and burglary. Deductibles for physical damage are the amount of money you are willing to pay if you file a covered claim. The more expense you’re willing to pay, the lower your rates will be.
- Marriage brings a discount – Being married actually saves money on car insurance. Having a significant other translates into being more mature than a single person and it’s statistically proven that drivers who are married are more cautious.
- Keep rates low by being claim-free – If you are a frequent claim filer, you can look forward to higher rates. Companies in Connecticut generally give discounts to insureds who file claims infrequently. Insurance coverage is intended for larger claims.
- Where you live can impact rates – Residing in less populated areas has it’s advantages when insuring your vehicles. Fewer people means fewer accidents as well as less vandalism and auto theft. City drivers regularly have congested traffic and much longer commute distances. Higher commute times means higher likelihood of an accident.
Don’t miss these discounts
Auto insurance companies do not advertise all their discounts in an easy-to-find place, so the following is a list of both the well known and the more hidden car insurance savings. If they aren’t giving you every credit you qualify for, you are throwing money away.
- Homeowners Pay Less – Simply owning a home may earn you a small savings because of the fact that having a home shows financial diligence.
- Braking Control Discount – Anti-lock brake equipped vehicles are safer to drive and will save you 10% or more.
- Multiple Cars – Having all your vehicles with the same company can get a discount on all vehicles.
- Early Switch Discount – Some insurance companies reward drivers for switching policies prior to your current policy expiration. It’s a savings of about 10%.
- Organization Discounts – Participating in a civic or occupational organization may earn a discount when buying car insurance.
- Seat Belts Save – Using a seat belt and requiring all passengers to use their safety belts could cut 10% or more off the personal injury premium cost.
- Anti-theft Discount – Vehicles equipped with anti-theft or alarm systems help deter theft and qualify for as much as a 10% discount.
It’s important to note that most discount credits are not given to your bottom line cost. Most cut individual premiums such as medical payments or collision. So even though they make it sound like you can get free auto insurance, you’re out of luck.
For a list of insurers with the best car insurance discounts in Greenwich, follow this link.
When might I need help?
When choosing proper insurance coverage, there really is not a one size fits all plan. Every insured’s situation is different so this has to be addressed. For instance, these questions could help you determine whether your personal situation would benefit from an agent’s advice.
- Do I need to file an SR-22 for a DUI in Connecticut?
- Are my friends covered when driving my vehicle?
- At what point should I drop full coverage?
- When do I need to add a new car to my policy?
- Does my personal policy cover me when driving my company car?
- What happens if I owe more than my vehicle is worth?
- What is covered by UM/UIM coverage?
- Is my cargo covered for damage or theft?
If you can’t answer these questions, you may need to chat with an insurance agent. To find an agent in your area, take a second and complete this form or go to this page to view a list of companies. It’s fast, free and you can get the answers you need.
Additional detailed information can be read at the Connecticut Insurance Department website. Visitors are able to view agent and company licensing information, learn about specific coverages, and learn about insurance regulations.
Summing up your car insurance search
Discount car insurance can be purchased on the web in addition to many Greenwich insurance agents, and you should be comparing both to have the best selection. Some insurance companies do not provide the ability to get a quote online and usually these smaller companies provide coverage only through local independent agents.
Throughout this article, we presented many tips how you can save on car insurance. The key concept to understand is the more providers you compare, the better your comparison will be. Consumers may even find the best price on car insurance is with a lesser-known regional company. They can often insure niche markets at a lower cost as compared to the big name companies such as State Farm and Allstate.