February 6, 2009 - 9:28am
Whether you want to buy auto insurance for the first time or find lower quotes than you have now, there is a fast and easy way to do it – browse insurance websites online. You will be able to analyze and compare policies from a wide range of insurance companies. Most of the major insurers are now online, and there are a lot of companies that sell only via Internet. Find out how to lower your auto insurance rates and decide which company offers the best deal!
If you drive a car, you know that accidents can and do happen. It’s life! Even the most attentive and experienced drivers can fail to avoid an unexpected object in the road and get their bumper scratched. Or your new shiny car can be stolen from restaurant parking lot! Such situations are often unpredictable. Auto insurance will protect you against the financial risk associated with personal injuries and property damage. In most states it is required by law to always have insurance on the vehicle you drive.
Auto insurance is a binding legal contract between you and an insurance company. You agree to pay the premiums and the company agrees to pay compensation for the damages resulted from a car crush. On the one hand, it is very convenient – you don’t need to pay a fortune in case of an accident. On the other hand, auto insurance can significantly raise your car-related expenses.
One of the most effective ways to reduce insurance costs is simply to shop around. Insurance premiums for the same coverage on the same vehicle can vary among different providers even in the states that regulate auto insurance rates. You work hard for your money, so why not spend it as efficiently as possible? Some years ago, getting the cheapest auto insurance rates took a lot of time and effort. People made multiple phone calls or met with insurance agents personally. Nowadays a simple search on the Internet can give you necessary prospects.
Typically, there are two types of websites where you can buy auto insurance online. The first one is official sites of large insurance companies, for example Liberty Mutual, Amica, GEICO. The second type of websites provides auto insurance quotes from numerous auto insurance carriers. This type includes such companies as Online Auto Insurance, Progressive, Insurance.com. Their main advantage is that you can save your time and compare rates from several insurance companies at once.
Of course, many drivers want to know which online insurance company is the cheapest. However, there is no provider that offers the lowest rates for all drivers. Some companies may offer good rates to drivers with tickets and accidents while others may be more suitable for people with a good driving record. You need to find an insurer that provides the lowest rates for your particular situation.
There are many factors that affect auto insurance premiums. The first information that you need to enter online is your zip code. Insurance rates will raise or lower depending on the state you live in. For instance, areas with a large population are subject to higher rates because there are more accidents and car thefts. According to statistics, the cheapest rates, on average, are in Iowa - $1288 per year, Ohio - $1325 per year, Wisconsin - $1340 per year and Idaho - $1360 per year. The highest rates, on average, are in New Jersey - $2507 per year, Louisiana - $2631 per year, and District of Columbia - $3152 per year. Overall car insurance rates averaged $1,908 annually.
The next factor that has an influence on your insurance premiums is the model and the make of your car. All insurance companies use this information when they set their prices. If your vehicle has a high theft rate, your coverage will cost more. If the car that you drive is very expensive to repair, the insurer will need to spend more money in case of an accident. Vise versa, if the car that you drive is proved to be very safe, your insurance company will not have to spend a lot of money to cover the damage.
It makes sense to keep this factor in mind when you are going to buy a car. Sports cars typically cost more to insure than a family sedan. According to statistics, insurance for a new Honda Odyssey will cost you, on average, $1,216 per year, Ford F-series pickup - $1,275, Honda Accord - $1,331, Honda CR-V - $1,240, Ford Escape - $1,245, Ford Focus - $1,369, Ford Fusion - $1,363, Chevrolet Malibu - $1,355, Toyota Prius - $1,396. The most expensive models are Toyota Camry - $1,506 per year, Toyota Corolla - $1,538, Chevy Silverado C/K pickup - $1,481 and Dodge Ram pickup - $1,553.
The other factors that matter are your age, driving record, credit score, where your car is parked at night, etc. Even though you can't change the majority of these factors, there are some ways to lower your insurance premiums and save several hundred dollars.
1. Increase your insurance deductibles.
Car insurance prices are based on how much money the insurance company thinks it will need to pay in case of an accident. If you agree to compensate for a larger part of your own damages by raising your deductibles, your insurance company won't need to pay as much for your claims. That’s why they can offer you cheaper prices. But make sure that you can afford to pay your part of expenses if you decide to raise your deductibles to save money.
2. Eliminate optional coverage if you don't need them.
Coverage types are the basis of any insurance policy. It doesn’t matter where you want to buy your insurance – online or offline, the main types of coverage will remain the same. In most states you are required to buy at least the minimum amount of liability coverage. It includes bodily injury liability and property damage liability. Other types of auto insurance coverage may be optional or required, depending on state regulations. They include collision, comprehensive, uninsured and underinsured motorist, and medical payments coverage. Decide whether you need them or not. If you have an old car that wouldn't cost much to replace, you may eliminate collision and comprehensive coverage.
3. Ask about available discounts
Most auto insurance companies offer discounts for a variety of reasons - for instance, for payment in full, having more than one vehicle insured, car safety features, anti-theft devices or accident-free driving. Some companies have special discounts just for buying insurance online! So don’t be afraid to ask.
4. Maintain good credit score.
It is a common practice to use information from your credit report to determine your potential insurance risk. If you have defaults, late or missed payments and numerous credit inquiries, you will probably pay higher insurance premiums. Consumers facing personal bankruptcy will seriously drop their credit score and may be considered as a high risk.
5. Avoid a lapse in coverage.
Driving without auto insurance is prohibited by law. If you have a lapsed policy, it can be an alert sign for insurance providers. As a result, it can cost you thousands of dollars when you decide to buy auto insurance again. A particularly good time to analyze your alternatives is when your current insurance policy is up for renewal, but of course you can compare and change policies at any time you want.
If you drive a car, you know that accidents can and do happen. It’s life! Even the most attentive and experienced drivers can fail to avoid an unexpected object in the road and get their bumper scratched. Or your new shiny car can be stolen from restaurant parking lot! Such situations are often unpredictable. Auto insurance will protect you against the financial risk associated with personal injuries and property damage. In most states it is required by law to always have insurance on the vehicle you drive.
Auto insurance is a binding legal contract between you and an insurance company. You agree to pay the premiums and the company agrees to pay compensation for the damages resulted from a car crush. On the one hand, it is very convenient – you don’t need to pay a fortune in case of an accident. On the other hand, auto insurance can significantly raise your car-related expenses.
One of the most effective ways to reduce insurance costs is simply to shop around. Insurance premiums for the same coverage on the same vehicle can vary among different providers even in the states that regulate auto insurance rates. You work hard for your money, so why not spend it as efficiently as possible? Some years ago, getting the cheapest auto insurance rates took a lot of time and effort. People made multiple phone calls or met with insurance agents personally. Nowadays a simple search on the Internet can give you necessary prospects.
Typically, there are two types of websites where you can buy auto insurance online. The first one is official sites of large insurance companies, for example Liberty Mutual, Amica, GEICO. The second type of websites provides auto insurance quotes from numerous auto insurance carriers. This type includes such companies as Online Auto Insurance, Progressive, Insurance.com. Their main advantage is that you can save your time and compare rates from several insurance companies at once.
Of course, many drivers want to know which online insurance company is the cheapest. However, there is no provider that offers the lowest rates for all drivers. Some companies may offer good rates to drivers with tickets and accidents while others may be more suitable for people with a good driving record. You need to find an insurer that provides the lowest rates for your particular situation.
There are many factors that affect auto insurance premiums. The first information that you need to enter online is your zip code. Insurance rates will raise or lower depending on the state you live in. For instance, areas with a large population are subject to higher rates because there are more accidents and car thefts. According to statistics, the cheapest rates, on average, are in Iowa - $1288 per year, Ohio - $1325 per year, Wisconsin - $1340 per year and Idaho - $1360 per year. The highest rates, on average, are in New Jersey - $2507 per year, Louisiana - $2631 per year, and District of Columbia - $3152 per year. Overall car insurance rates averaged $1,908 annually.
The next factor that has an influence on your insurance premiums is the model and the make of your car. All insurance companies use this information when they set their prices. If your vehicle has a high theft rate, your coverage will cost more. If the car that you drive is very expensive to repair, the insurer will need to spend more money in case of an accident. Vise versa, if the car that you drive is proved to be very safe, your insurance company will not have to spend a lot of money to cover the damage.
It makes sense to keep this factor in mind when you are going to buy a car. Sports cars typically cost more to insure than a family sedan. According to statistics, insurance for a new Honda Odyssey will cost you, on average, $1,216 per year, Ford F-series pickup - $1,275, Honda Accord - $1,331, Honda CR-V - $1,240, Ford Escape - $1,245, Ford Focus - $1,369, Ford Fusion - $1,363, Chevrolet Malibu - $1,355, Toyota Prius - $1,396. The most expensive models are Toyota Camry - $1,506 per year, Toyota Corolla - $1,538, Chevy Silverado C/K pickup - $1,481 and Dodge Ram pickup - $1,553.
The other factors that matter are your age, driving record, credit score, where your car is parked at night, etc. Even though you can't change the majority of these factors, there are some ways to lower your insurance premiums and save several hundred dollars.
1. Increase your insurance deductibles.
Car insurance prices are based on how much money the insurance company thinks it will need to pay in case of an accident. If you agree to compensate for a larger part of your own damages by raising your deductibles, your insurance company won't need to pay as much for your claims. That’s why they can offer you cheaper prices. But make sure that you can afford to pay your part of expenses if you decide to raise your deductibles to save money.
2. Eliminate optional coverage if you don't need them.
Coverage types are the basis of any insurance policy. It doesn’t matter where you want to buy your insurance – online or offline, the main types of coverage will remain the same. In most states you are required to buy at least the minimum amount of liability coverage. It includes bodily injury liability and property damage liability. Other types of auto insurance coverage may be optional or required, depending on state regulations. They include collision, comprehensive, uninsured and underinsured motorist, and medical payments coverage. Decide whether you need them or not. If you have an old car that wouldn't cost much to replace, you may eliminate collision and comprehensive coverage.
3. Ask about available discounts
Most auto insurance companies offer discounts for a variety of reasons - for instance, for payment in full, having more than one vehicle insured, car safety features, anti-theft devices or accident-free driving. Some companies have special discounts just for buying insurance online! So don’t be afraid to ask.
4. Maintain good credit score.
It is a common practice to use information from your credit report to determine your potential insurance risk. If you have defaults, late or missed payments and numerous credit inquiries, you will probably pay higher insurance premiums. Consumers facing personal bankruptcy will seriously drop their credit score and may be considered as a high risk.
5. Avoid a lapse in coverage.
Driving without auto insurance is prohibited by law. If you have a lapsed policy, it can be an alert sign for insurance providers. As a result, it can cost you thousands of dollars when you decide to buy auto insurance again. A particularly good time to analyze your alternatives is when your current insurance policy is up for renewal, but of course you can compare and change policies at any time you want.