Having to pay for overpriced auto insurance can empty your personal savings, especially in this economy. Shopping your coverage around is a smart way to help make ends meet.
Big companies like Progressive, State Farm and GEICO all claim big savings, bombarding you with fancy advertisements and it is difficult to ignore the flying pigs and cute green geckos and do the work needed to find the best deal.
You need to check auto insurance prices on a regular basis because rates trend upward over time. Just because you had the lowest rates two years ago a different company probably has better rates today. Forget anything you know (or think you know) about auto insurance because we’re going to demonstrate the best methods to find better coverage at a better price.
If you currently have car insurance, you will most likely be able to save some money using these methods. Finding the best rates in Franklin is not that difficult. Although Tennessee car owners need to have an understanding of how companies sell insurance online because it can help you find the best coverage.
More discounts equal less premium
Insuring your fleet can be pricey, but you may find discounts to cut the cost considerably. Certain discounts will be triggered automatically at the time of purchase, but lesser-known reductions have to be manually applied prior to receiving the credit.
- Life Insurance Discount – Some companies give a discount if you purchase auto and life insurance together.
- Braking Control Discount – Vehicles equipped with ABS or steering control can reduce accidents and will save you 10% or more.
- Memberships – Belonging to a qualifying organization may earn a discount on auto insurance.
- Accident Free – Good drivers with no accidents pay less as compared to bad drivers.
- Low Mileage Discounts – Driving fewer miles could be rewarded with better rates on cars that stay parked.
- Student in College – Children who are attending college and do not have access to a covered vehicle may qualify for this discount.
Consumers should know that most of the big mark downs will not be given to the entire policy premium. Most only apply to the cost of specific coverages such as comprehensive or collision. So when the math indicates adding up those discounts means a free policy, companies don’t profit that way. But any discount will bring down your overall premium however.
Which Auto Insurance is Cheapest in Franklin, TN?
When shopping for auto insurance there are multiple ways of comparing rate quotes and find the best price. The simplest method to compare insurance prices consists of obtaining rate quotes online. This can be done in a couple of different ways.
- Probably the best way to get quotes would be an industry-wide quote request form like this one (opens in new window). This method prevents you from having to do repetitive form submissions to each individual auto insurance company. A single form gets you coverage quotes from multiple companies.
- A less efficient way to compare rate quotes requires you to visit the website for each individual company and request a quote. For instance, we’ll assume you want rates from Allstate, Farmers and American Family. To find out each rate you need to spend time on each company’s site to input your insurance information, which is why the first method is more popular. For a handy list of car insurance company links in Franklin, click here.
Which method you use is up to you, but make darn sure you compare the exact same information for each comparison quote. If the quotes have differing limits it will be very difficult to determine the lowest rate in Franklin. Having just a slight variation in insurance coverages could mean much higher rates. And when comparison shopping, obtaining a wide range of quotes will enable you to find lower pricing.
You have some control over your rates
Smart consumers have a good feel for the rating factors that come into play when calculating the rates you pay for auto insurance. Understanding what controls the rates you pay empowers consumers to make smart changes that may reward you with big savings.
The list below includes some of the items used by your company to calculate rates.
- Drive less and save money – The more you drive in a year the higher your rate. Almost all companies price each vehicle’s coverage based upon how you use the vehicle. Cars that are left in the garage get more affordable rates than those used for commuting. Verify your auto insurance policy is rated on the correct driver usage.
- Liability coverage is peace of mind – The liability section of your policy provides coverage if a court rules you are at fault for personal injury or accident damage. Liability insurance provides legal defense coverage starting from day one. Carrying liability coverage is mandatory and cheap compared to insuring for physical damage coverage, so do not skimp.
- Do you have a high stress job? – Did you know your job can affect your rates? Careers like judges, executives and stock brokers are shown to have the highest rates in part from high stress and lengthy work days. On the other hand, professions such as pilots, students and homemakers pay the least.
- Do you know your deductibles? – Physical damage coverage, termed comprehensive and collision coverage on your policy, is used to repair damage to your car. Some examples of claims that would be covered could be a windshield shattered by a rock, damage caused by hail, and windstorm damage. Deductibles for physical damage are how much you are willing to pay out-of-pocket in the event of a claim. The more money the insured has to pay upfront, the less your company will charge you for insurance.
- High credit ratings translate to low rates – Credit score is a huge factor in determining your rates. Consumers who have good credit tend to be less risk to insure than those with lower ratings. If your credit rating is low, you could potentially save money when insuring your by spending a little time repairing your credit.
- Allowing your policy to lapse raises rates – Not having insurance is illegal and auto insurance companies will penalize you for letting your coverage lapse. Not only will rates go up, but being ticketed for driving with no insurance can result in a license revocation or jail time.You may need to provide proof of insurance in the form of an SR-22 filing with the Tennessee DMV.
- Extra add-on coverages are wasting money – There are quite a few additional coverages that can waste your money when buying auto insurance. Coverages like roadside assistance, accident forgiveness and additional equipment coverage are examples of these. These coverages may sound good when you first buy your policy, but now you might not need them so get rid of them and save.
- Older drivers save more – Older drivers are more cautious drivers, tend to file fewer claims and get fewer tickets. Teenage drivers tend to be careless and easily distracted behind the wheel therefore auto insurance rates are much higher.
Budget-conscious auto insurance can be sourced both online as well as from independent agents in Franklin, and you should compare price quotes from both in order to have the best chance of saving money. Some insurance providers don’t offer you the ability to get quotes online and these small, regional companies work with independent agents.
We’ve covered quite a bit of information on how to lower your auto insurance rates. The key concept to understand is the more you quote, the better your chances of lowering your rates. Consumers could even find that the best prices are with a company that doesn’t do a lot of advertising. Regional companies can often provide lower rates in certain areas than their larger competitors like GEICO and State Farm.
When buying insurance coverage, it’s a bad idea to skimp on coverage in order to save money. There are a lot of situations where an insured cut liability coverage limits to discover at claim time that their decision to reduce coverage ended up costing them more. Your strategy should be to purchase plenty of coverage at a price you can afford.
Much more information about auto insurance in Tennessee can be read on the website for the Tennessee Department of Commerce and Insurance. Click here for link. Visitors are able to find out which companies have the most complaints, learn about specific coverages, read industry bulletins, and find out industry alerts.
Other informative sites include NAIC.org’s Understanding your Policy and this resource to find Franklin, TN insurance agents.