How to Find Low Auto Insurance Rates

If you need to find low auto insurance rates, you are in luck. There are certain ways to go about acquiring a fair quote. Most of the experts agree the car insurance companies base rates on specific factors.

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The way auto insurance companies calculate rates has to do with the risk factor. They may attach explanations, like age, geographical location, gender, and type of vehicle. However, it still boils down to the likelihood of an accident or incident. No matter what the reason, the outcome remains the same.

The good news is you have many ways to challenge the status quo. Your first line of defense against high car insurance rates is education. This does not mean you need to spend hours on the Internet. You will not have to complete countless searches. You just need to be intelligent and utilize your resources.

Find the State Laws for Personal Auto Insurance

Before you take the step into obtaining personal auto insurance, you need to know the laws. Each state has different requirements and their own website. Unfortunately, the names may vary. Some states use the Department of Insurance others use the Division of Insurance. If you are not sure, it can take a while.

Rather than spending hours searching, go directly to the Insurance Consumer Advocate Network. This is a wonderful way to locate each one. You can click the link to your state or contact them by phone. Either way, you will eliminate wasting time on research. Once you find out how the laws of your state apply, you can move forward.

The next logical step is to gather your paperwork. You should have the information on the year, make, and model of the car. You also need your vehicle registration. Make your task as simple as possible. Try not to wait until you start making calls before you get the essentials.

Understand the Type of Coverage

Now you should be ready to learn the types of coverage. Some car insurance companies offer a host of options. However, you will do fine with just the basic levels. Start with learning how liability works. This is the first level and you must begin here. You need to understand the limits. They differ by state.

Your state may have very low limits, like Florida. Their minimum is just 10/20/10. This means you receive $10,000 for bodily injury and $10,000 for property damage. $20,000 pays for each accident.

Other states, like Maine and Alaska have much higher limits. Both states require at least 25/50/25. With the rising costs in every industry, it seems Maine and Alaska each have better options.

Of course, they might begin their liability rates at higher amounts. However, they seem to do a better job at protecting their residents and their finances.

Car insurance coverage works on a tier system. This means you select from the offerings and build according to your needs. Most customers choose the minimum limits for liability, unless their state has very low requirements.

If this happens, your car insurance provider may recommend you increase the numbers a bit. Do not feel pressured just know how low limits affect you. If you are the reason for a collision, you may not have enough coverage. It might not be worth the minimal savings.

Uninsured/Underinsured motorist coverage is something many also select. The unfortunate reality is too many customers drive without insurance today. If they do have coverage, they do not have enough.

If you think you need protection against these situations, choose wisely. Make sure your policy does not increase too much. Just ensure you have adequate levels.

Comprehensive and collision are also common choices. Generally, people with newer vehicles select these options. They take care of the costs due to crashes and theft. You must choose a suitable deductible. After you pay this amount, they take care of the rest of the charges.

When your car has a damaged fender, you file a claim. This is also true if other damage occurs. If you choose these levels, keep your deductibles on the high end. This can lower your rates.

Bear in mind that your deductible should be approximately 10% of the value of your vehicle. If your car is worth $25,000, your deductible should not exceed $2500. This is of course after the first few years. Your vehicle depreciates quickly. As the value of your car begins dropping, so should your deductible. Your car insurance provider considers all of this.

Review Your Current Health Insurance Plan

You may ask how this applies to car insurance, but it does. Since auto insurance coverage has levels, you will see Personal Insurance Protection and Medical Coverage options. If you a good medical health insurance plan, you may not need these.

Limiting your selections is one of the easiest ways to keep your rates low. Unfortunately, many people fail to realize this and choose one or both. They wind up spending more than they should. PIP coverage is costly.

A report by the Agency for Healthcare Research and Quality shows the number of emergency room visits and the average costs for each visit. They also include the out-of-pocket costs.

A large number of car accident victims receive care through the emergency room. This means the expenses related to this report correlate with these events. The good news is your health care plan usually covers this kind of emergency.

Overall, there were 52 million reported cases. Of these, the costs were $960 per person. However, the out-of-pocket charges were only $107. As you can see, health insurance picked up the majority of the amounts.

If you calculate the cost for PIP and medical coverage on an auto insurance policy, the difference is greater. Your out-of-pocket costs will include a deductible, not a co-pay. Co-pay charges are much less. It seems a wise decision to skip these two levels of coverage.

Employer Based Group Association Plans

These types of auto insurance policies are not for everyone. However, they are a great way to receive low rates. Some companies, especially large corporations belong to organizations and groups. They can have great discount options.

If your company has a fleet of cars, vans or trucks they probably receive a group rate. The trucks and vans might require commercial coverage. This may not apply to you. However, the company cars need coverage too. They may have personal coverage. This is where you can take advantage.

At the very least, your company has a good relationship with them. This means you may receive a discount anyway. They may offer you a discount because of your employment status.

Go to your local Human Resources department and inquire. If you are lucky, they already have a plan in place for employees. If not, ask how you can qualify.

Maybe you can get a group of your peers together and increase your eligibility odds. As long as your rates are lower, it is definitely worth the time.

Targeted Age-Based Affiliations

Places like AARP and the American Senior Benefits Association are specifically geared towards the 50+ crowd. They offer great reductions in car insurance rates for seasoned veterans behind the wheel. Yet another great reason for the baby boomers to celebrate.

Although the savings are comparable, you will not need to worry about reducing the coverage amounts. This is an added benefit, especially if you plan to purchase a new car. Most people fail to realize that seniors purchase new vehicles quite often.

Many believe this age group has the lowest level of coverage because they have older cars. The common misconception is seniors do not spend as much on material possessions. This is actually very far from reality.

The truth is according to Maine Seniors Magazine, seniors aged 62 and older purchase 43% or almost half of all new cars. Of the 43% they buy, 48% are luxury cars.

Since they spend quite a few dollars on these vehicles, added levels of comprehensive and collision often accompany these purchases. Fortunately, the qualifying discount allows an excellent level of protection.

Pay Your Premium in Full

You can receive a lower rate when you pay your premium in full. Virtually every car insurance company offers a discount if you choose this option. Alternatively, the costs can rise if you choose an installment plan. Most providers add a surcharge between $3 and $5 per month.

Paying the entire premium up front eliminates these types of administration fees. They reward customers by way of a discount. The majority of car insurance companies explain this in detail. Generally, they do not require you to ask. This type of discount is unlike student or good driver, which require proof or documents.

Your premium payment request comes at the end of the application process. If you complete everything online, you can qualify for additional savings. For example, many auto insurance providers use their website as an incentive. It helps keep costs low. As a bonus, you may receive as much as $50 off your premium by using their web application.

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