Are you overwhelmed by the dozens of auto insurance options? You have a lot of company. Consumers have so many options available that it can easily become a challenge to find the perfect company for you.
It’s important that you understand the different types of things that play a part in calculating the rates you pay for insurance. Understanding what impacts premium levels enables informed choices that will entitle you to better insurance rates.
Shown below are some of the factors insurance companies consider when setting prices.
The cost of insuring your cars can be expensive, but you can get discounts that many people don’t even know exist. Certain discounts will be triggered automatically when you complete an application, but some must be specifically requested before you will receive the discount.
Consumers should know that most credits do not apply the the whole policy. Most only apply to the price of certain insurance coverages like physical damage coverage or medical payments. So even though it sounds like you could get a free insurance coverage policy, you’re out of luck. Any qualifying discounts will cut the cost of coverage.
A partial list of companies that possibly offer these discounts may include but are not limited to:
It’s a good idea to ask each company which discounts they offer. All car insurance discounts might not be offered in your state.
Companies like Allstate and Progressive consistently run ads on television and other media. All the ads say the same thing about savings if you change your policy. But how can every company say the same thing?
Insurance companies are able to cherry pick for the type of driver that earns them a profit. An example of a profitable customer might be profiled as over the age of 40, insures multiple vehicles, and has excellent credit. A driver that hits that “sweet spot” will qualify for the lowest rates and therefore will save quite a bit of money when switching.
Consumers who do not match the “perfect” profile will be quoted higher premiums and ends up with the customer not buying. The ads state “drivers who switch” not “people who quote” save that much. That is how companies can truthfully claim big savings.
This emphasizes why drivers should get a wide range of price quotes. Because you never know which insurance companies will provide you with the cheapest Chevy Silverado 3500 insurance rates.
When it comes to buying coverage, there isn’t really a single plan that fits everyone. Everyone’s situation is unique.
For instance, these questions could help you determine whether or not you may require specific advice.
If it’s difficult to answer those questions but you know they apply to you then you might want to talk to a licensed insurance agent. If you don’t have a local agent, fill out this quick form.
Knowing the specifics of insurance aids in choosing the right coverages at the best deductibles and correct limits. The terms used in a policy can be confusing and reading a policy is terribly boring.
UM/UIM (Uninsured/Underinsured Motorist) coverage
This gives you protection when other motorists either are underinsured or have no liability coverage at all. This coverage pays for hospital bills for your injuries as well as your vehicle’s damage.
Due to the fact that many drivers only purchase the least amount of liability that is required, their liability coverage can quickly be exhausted. This is the reason having UM/UIM coverage is very important. Frequently these coverages are identical to your policy’s liability coverage.
Liability coverage protects you from damage that occurs to a person or their property in an accident. This insurance protects YOU from legal claims by others. It does not cover damage sustained by your vehicle in an accident.
It consists of three limits, per person bodily injury, per accident bodily injury, and a property damage limit. As an example, you may have policy limits of 100/300/100 which means $100,000 bodily injury coverage, $300,000 for the entire accident, and a limit of $100,000 paid for damaged property. Another option is one limit called combined single limit (CSL) which provides one coverage limit without having the split limit caps.
Liability coverage pays for things like attorney fees, medical expenses and pain and suffering. How much coverage you buy is up to you, but it’s cheap coverage so purchase as much as you can afford.
Comprehensive auto coverage
Comprehensive insurance coverage covers damage caused by mother nature, theft, vandalism and other events. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive insurance covers things like damage from getting keyed, theft, a tree branch falling on your vehicle and damage from flooding. The most you’ll receive from a claim is the ACV or actual cash value, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.
Collision coverage protection
This coverage will pay to fix damage to your Silverado 3500 from colliding with another vehicle or an object, but not an animal. A deductible applies and then insurance will cover the remainder.
Collision coverage pays for things such as rolling your car, sustaining damage from a pot hole, crashing into a building, scraping a guard rail and hitting a mailbox. This coverage can be expensive, so analyze the benefit of dropping coverage from vehicles that are 8 years or older. Another option is to increase the deductible in order to get cheaper collision rates.
Medical payments and PIP coverage
Coverage for medical payments and/or PIP reimburse you for bills like ambulance fees, dental work, surgery, X-ray expenses and hospital visits. They are used in conjunction with a health insurance policy or if there is no health insurance coverage. They cover you and your occupants and will also cover getting struck while a pedestrian. Personal injury protection coverage is only offered in select states but it provides additional coverages not offered by medical payments coverage
Lower-priced 2001 Chevy Silverado 3500 insurance is attainable both online and also from your neighborhood agents, and you need to price shop both in order to have the best price selection to choose from. Some car insurance companies may not provide online price quotes and usually these small insurance companies provide coverage only through local independent agents.
As you restructure your insurance plan, don’t be tempted to reduce needed coverages to save money. There have been many situations where someone sacrificed liability limits or collision coverage and discovered at claim time that the small savings ended up costing them much more. The ultimate goal is to buy the best coverage you can find at the best price while not skimping on critical coverages.
We just presented a lot of information how to lower your insurance rates. The most important thing to understand is the more providers you compare, the better your comparison will be. Drivers may discover the best price on car insurance is with a smaller regional carrier.
Additional detailed information can be found in these articles: