Are you currently in the market for auto insurance, but you have no idea where to start? Are you confused about the various coverages and price points? It is easy to become extremely overwhelmed with all of your available options with all these different auto insurance companies.
If you are looking for more information on how to pick the best auto insurance policy for your needs, then you came to the right article. We will explain how to compare different car insurance rates and tips on saving more on your auto insurance policy.
What Are Auto Insurance Quotes?
Car insurance quotes are estimates provided to you by an auto insurance company. This quote tells you how much you can expect to pay for your insurance policy. These quotes show the entire auto insurance premium.
You have the option to either pay the whole premium upfront. If you don’t want to pay the entire premium at once, you have the opportunity to break up your premium into monthly payments. Most premiums are based on six month period. After your sixth month, your premium is reevaluated and adjusted.
What Are Auto Insurance Rates?
An auto insurance rate is the amount you pay for an auto policy over a set period of time. The coverages that you choose and your driving record are a couple of the main factors that determine your rate. Other factors such as your age, credit score, and where you live can also cause your rate to increase or decrease.
Available Auto Insurance Coverages
When comparing different auto insurances, keep in mind that your coverages are one of the most significant factors that determine your rate. In most states, you are required to carry liability insurance. Liability coverages cover the payments associated with someone else’s repairs and medical bills if you cause an accident.
Bodily Injury Liability Coverage
If you live in a state where liability coverage is required, you will see bodily injury liability coverage on your policy. This coverage helps to pay for someone else’s injuries if you are responsible for the incident.
Property Damage Liability Coverage
Property damage coverage is another coverage used to handle someone else’s vehicle damages. If you are responsible for the accident, your policy will utilize this coverage to take care of any repairs associated with the damages caused by the auto accident.
Collision Coverage
Collision coverage is not liability coverage. Collision covers the repairs to your vehicle in the event of an accident. Regardless of if you are at fault or not, you can use this coverage to take care of your repairs.
Collision coverage typically comes with a deductible. Your damages must exceed the deductible limit before your insurance policy kicks in.
For example, if your deductible is $500 and your damages are only $300, you will have to pay for your damages out of your pocket. If your damages were $1000, your insurance would pay $500 worth of your damages, and you will only have to pay $500.
Comprehensive Coverage
Comprehensive coverage also carries a deductible. Comprehensive coverage covers your vehicle if it sustains damages from an “act of god.”
If your vehicle floods, catches on fire or sustains damage from a tornado, you can utilize this coverage. Comprehensive coverage covers any other accidents that aren’t a collision with an object or person.
Compare Car Insurance Rates
Before you settle on one insurance rate, make sure that you obtain different quotes. Comparing at least three different car insurance rates will show you which one is the best car insurance rate for you.
The Insurance Information Institute suggests that you obtain at least three different quotes from different auto insurers. Each quote you request should have the same set of coverages, deductibles, and limits. Having the same information on each of the quotes allows you to compare the quotes fairly.
Auto Insurance Discounts
If you are looking for cheap car insurance, you can do a few things to lower your auto insurance rates. When you go to pick your insurance coverages, you have the option to increase or decrease your deductibles the higher your deductible, the lower your premium.
Just keep in mind that if you have a higher deductible, you will have to pay more out of pocket for your vehicle repairs. If you have a leased or financed vehicle, you may have to keep your deductibles at $500 max.
Defensive Driving Course
Contrary to popular belief, defensive driving courses are not only available for bad drivers; anyone can take these courses. Even if you’re a safe driver with no tickets or points on your record, you could save a considerable amount of money on your insurance premiums by taking an online defensive driving course.
Many insurance providers will decrease your premium costs by as much as 10% annually for three consecutive years! That could mean hundreds of dollars back in your pocket. Defensive driving courses show your insurance company that you are taking the proper precautions to learn how to drive defensively, which makes you appear as a safe driver in their eyes.
Make sure that you choose a reputable defensive driving course that your auto insurance approves. DriveSafe Online is quickly becoming the number one choice for drivers throughout the nation. Great video content. Affordable pricing. And excellent customer service.
“Best Overall Online Defensive Driving Course”
Choose the best. DriveSafe Online has been named “Best Overall Online Defensive Driving Course” by Investopedia, a leading source of business and financial information. The website is a trusted go-to resource for consumers, investors, and anyone interested in unbiased product reviews. DriveSafe Online was noted for reasonable price, course options, and nationwide availability, as well as outstanding service based on customer reviews.
Check out our free demo to learn more about the benefits and features of our courses. Whether you need to clean up your driving record or want to save money on car insurance, we can help.
Patrick M. is Editorial Director for the always expanding DriveSafe Online library of courses. With over two decades of experience developing award-winning training, he now focuses on innovating online driver safety training. Pulling from his background in journalism, he steers the wheel behind the creation of top-tier content that promotes a better journey—whether on the digital highway of learning or the real roads we travel every day.