I can’t think of a single person who cherishes buying car insurance, in particular when they are paying too much. Having so many online and local companies to choose from, it’s nearly impossible to locate the most cost effective provider.
Buying the lowest cost protection in Oakdale can be fairly easy. If you have a policy now or are looking for a new policy, you can use this information to shop for the lowest rates while maintaining coverages. Minnesota drivers just need to learn the most efficient way to shop their coverage around online.
Why your price might be higher
Smart consumers have a good feel for the rating factors that go into determining your car insurance rates. Understanding what determines base rates helps enable you to make changes that may reward you with lower car insurance prices.
- Men fork out a little more – Statistics show women tend to be less risk to insure than men. However, don’t assume that women are BETTER drivers than men. Both sexes tend to get into accidents in similar percentages, but the men cause more damage and cost insurance companies more money. Men also statistically get more serious tickets such as DWI and reckless driving.
- Protect yourself with liability coverage – The liability section of your policy is the protection if a court rules you are at fault for damages from an accident. It will provide legal defense coverage which can be incredibly expensive. Carrying liability coverage is mandatory and cheap compared to insuring for physical damage coverage, so buy as much as you can afford.
- Better credit scores mean better rates – A driver’s credit score is a large factor in determining what you pay for car insurance. People with high credit ratings tend to be more responsible than drivers with lower credit ratings. If your credit history is low, you could save money insuring your by improving your credit score.
- High crash test scores lower rates – Vehicles with high crash test scores tend to have better insurance rates. Safe vehicles result in less severe injuries and lower injury rates translates into fewer and smaller insurance claims and more competitive rates for policyholders.
- More than one policy can earn a discount – Some car insurance companies will award you with lower prices to people who consolidate policies with them. It’s known as a multi-policy discount. Discounts can add up to ten or even up to twenty percent in some cases. Even though this discount sounds good, it’s still a good idea to compare other company rates to ensure the best deal.
- Rates may be lower depending on your job – Did you know your car insurance rates can be affected by your occupation? Jobs such as real estate brokers, business owners and accountants tend to pay higher rates than average in part from job stress and lots of time spent at work. On the flip side, occupations such as pilots, athletes and performers have the lowest average rates.
- Theft deterrents lower rates – Purchasing a vehicle with a theft deterrent system can get you a discount on your car insurance. Anti-theft features such as LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system all aid in stopping your car from being stolen.
Take advantage of discounts
Insurance can cost an arm and a leg, but companies offer discounts to cut the cost considerably. Certain discounts will be applied when you quote, but less common discounts must be manually applied before being credited. If you’re not getting every credit you qualify for, you’re just leaving money on the table.
- Driver’s Ed – Cut your cost by having your teen driver enroll in driver’s education in school.
- Save with a New Car – Putting insurance coverage on a new car can be considerably cheaper due to better safety requirements for new cars.
- Anti-lock Brake System – Vehicles with anti-lock braking systems are safer to drive and will save you 10% or more.
- Multiple Vehicles – Buying insurance for multiple vehicles on one policy may reduce the rate for each vehicle.
- 55 and Retired – If you qualify as a senior citizen, you may qualify for a small decrease in premiums.
It’s important to note that most credits do not apply to the entire policy premium. Most cut specific coverage prices like liability and collision coverage. So even though they make it sound like it’s possible to get free car insurance, car insurance companies aren’t that generous. But any discount will bring down your overall premium however.
For a list of insurance companies who offer car insurance discounts in Minnesota, click here.
How to know if you need help
When choosing adequate coverage for your vehicles, there isn’t really a “best” method to buy coverage. Coverage needs to be tailored to your specific needs so your insurance needs to address that. These are some specific questions might point out if your situation might need professional guidance.
- Am I covered when driving a rental car?
- Does my insurance cover damage caused when ticketed for reckless driving?
- Exactly who is provided coverage by my policy?
- Do I get a pro-rated refund if I cancel my policy early?
- What are the best liability limits?
- Do I pay less if my vehicle is kept in my garage?
- Is my dog or cat covered if injured in an accident?
If you can’t answer these questions but you think they might apply to your situation, you may need to chat with a licensed insurance agent. To find lower rates from a local agent, simply complete this short form or you can go here for a list of companies in your area. It’s fast, doesn’t cost anything and you can get the answers you need.
Much more information about car insurance in Minnesota is available on the website for the Minnesota Department of Commerce located here. Minnesota consumers can find a variety of consumer forms, find disaster information, and report car insurance fraud.
More effort can pay off
We covered quite a bit of information on how to save on car insurance. The most important thing to understand is the more rate comparisons you have, the better likelihood of reducing your rate. Drivers may discover the biggest savings come from a small mutual company. Smaller companies often have lower prices on specific markets compared to the large companies like State Farm or Progressive.
While you’re price shopping online, make sure you don’t buy lower coverage limits just to save a few bucks. Too many times, an insured dropped comprehensive coverage or liability limits to discover at claim time that the few dollars in savings costed them thousands. The aim is to buy a smart amount of coverage at a price you can afford while not skimping on critical coverages.