2002 GMC Sierra 2500 Car Insurance Cost

Finding lower rates for insurance coverage is a challenge for consumers not familiar with shopping for insurance online. There are so many options that it can be a ton of work to find lower rates.

Consumers should take time to get comparison quotes quite often due to the fact that insurance rates are variable and change quite frequently. Just because you had the best deal on Sierra coverage last year there may be better deals available now. There is a lot of bad advice regarding insurance coverage online, so we’re going to give you some great ways to save money.

Pieces of the GMC Sierra 2500 insurance rate puzzle

Consumers need to have an understanding of the rating factors that come into play when calculating insurance rates. Knowing what impacts premium levels enables informed choices that may reward you with much lower annual insurance costs.

  • Drive less and save money – The more you drive in a year the more you will pay for insurance. Most insurance companies apply a rate determined by how the vehicle is used. Cars used primarily for pleasure use receive lower rates compared to those used for work or business. Improper usage on your Sierra 2500 can result in significantly higher rates. Double check that your insurance policy is showing the correct driver usage, because improper ratings can cost you money.
  • Pay less if you’re married – Being married can actually save you money on insurance. Marriage translates into being more mature and responsible and statistics show drivers who are married are more cautious.
  • Your age impacts your rates – Teenage drivers are statistically proven to get distracted easily in a vehicle so insurance rates are higher. Mature drivers are more responsible, tend to cause fewer accidents and receive fewer citations.
  • High crash test scores lower rates – Vehicles with good safety scores are cheaper to insure. These vehicles protect occupants better and fewer injuries translates into savings for insurance companies and more competitive rates for policyholders. If your GMC Sierra 2500 has ratings of a minimum an “acceptable” rating on the Insurance Institute for Highway Safety website it is probably cheaper to insure.
  • More people means more accidents – Choosing to live in less populated areas can be a good thing when talking about insurance. Drivers in populated areas have to deal with much more traffic and longer commute times. Fewer people means a lower chance of having an accident and also fewer theft and vandalism claims.
  • Do you need those extra coverages? – There are a ton of extra coverages that you can buy on your insurance policy. Things like personal injury protection, towing coverage and motor club memberships may be wasting your money. They may seem good when you first buy your policy, but if you don’t need them remove them from your policy.
  • Your job and insurance rates – Did you know your occupation can influence how much you pay for insurance? Occupations like lawyers, executives and stock brokers have the highest rates because of high stress and lots of time spent at work. On the other hand, occupations like farmers, students and homemakers get better rates on Sierra coverage.
  • Traffic violations increase rates – Your driving citation history has a big impact on rates. Just one moving violation can increase rates twenty percent or more. Good drivers get better rates than bad drivers. Drivers who have serious citations like DWI, reckless driving or hit and run convictions may need to file a proof of financial responsibility form (SR-22) with their state DMV in order to continue driving.

Take discounts and save

The price of auto insurance can be rather high, but there are discounts available to help offset the cost. Larger premium reductions will be automatically applied at the time of quoting, but a few must be specially asked for before they will apply.

  • Resident Student – Kids in college who attend school more than 100 miles from home and do not have access to a covered vehicle may qualify for this discount.
  • Claim Free – Claim-free drivers pay less when compared with bad drivers.
  • Seat Belts Save – Buckling up and requiring all passengers to use a seat belt can save up to 15% off the personal injury premium cost.
  • Life Insurance – Companies who offer life insurance give a break if you buy a life insurance policy as well.
  • Accident Forgiveness – A handful of insurance companies permit an accident without raising rates as long as you don’t have any claims for a certain period of time.
  • More Vehicles More Savings – Having multiple cars or trucks on the same auto insurance policy could earn a price break for each car.
  • Anti-theft System – Anti-theft and alarm systems prevent vehicle theft and qualify for as much as a 10% discount.
  • Federal Employees – Employees or retirees of the government can save as much as 8% on Sierra coverage with a few auto insurance companies.
  • Homeowners Discount – Owning a house may trigger a auto insurance policy discount because of the fact that having a home requires personal responsibility.

Keep in mind that most discount credits are not given the the whole policy. Most only reduce the cost of specific coverages such as comp or med pay. So when it seems like it’s possible to get free car insurance, you’re out of luck. Any qualifying discounts will cut the amount you have to pay.

To see a list of insurance companies who offer auto insurance discounts, click here to view.

The fine print in insurance coverage ads

Insurance coverage companies such as GEICO, State Farm and Progressive continually stream ads in print and on television. They all seem to have a common claim about savings after switching your policy. But how can every company make almost identical claims?

All companies are able to cherry pick for the type of customer that earns them a profit. An example of a driver they prefer could possibly be a mature driver, owns a home, and drives less than 10,000 miles a year. Any driver who matches those parameters receives the best rates and most likely will cut their rates substantially.

Potential customers who don’t meet these standards will have to pay higher rates which leads to business not being written. The ad wording is “people who switch” not “people who quote” save that much. This is how companies can truthfully state the savings.

Because of the profiling, it is so important to get a wide range of price quotes. It is impossible to predict which insurance companies will fit your personal profile best.

Which policy gives me the best coverage?

When it comes to buying coverage, there really is not a “perfect” insurance plan. Your needs are not the same as everyone else’s.

For instance, these questions may help you determine whether your personal situation will benefit from professional help.

  • Does my policy cover my teen driver if they drive my company car?
  • Can I rate high risk drivers on liability-only vehicles?
  • What is covered by UM/UIM coverage?
  • Where can I find high-risk insurance?
  • When would I need additional glass coverage?
  • Is a fancy paint job covered?
  • Does my personal policy cover me when driving out-of-state?
  • Can I get a multi-policy discount?
  • Am I better off with higher deductibles on my 2002 GMC Sierra 2500?

If it’s difficult to answer those questions but you think they might apply to your situation, you might consider talking to a licensed insurance agent. To find an agent in your area, fill out this quick form.

Auto insurance coverage information

Understanding the coverages of your policy aids in choosing the best coverages and proper limits and deductibles. The coverage terms in a policy can be difficult to understand and even agents have difficulty translating policy wording.

Uninsured or underinsured coverage

Your UM/UIM coverage protects you and your vehicle when other motorists do not carry enough liability coverage. It can pay for injuries sustained by your vehicle’s occupants as well as damage to your GMC Sierra 2500.

Since a lot of drivers have only the minimum liability required by law, it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is very important. Most of the time your uninsured/underinsured motorist coverages are set the same as your liablity limits.

Liability coverage

This coverage protects you from damage or injury you incur to other people or property in an accident. It 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 values of 50/100/50 that means you have $50,000 bodily injury coverage, $100,000 for the entire accident, and $50,000 of coverage for damaged propery. Some companies may use one limit called combined single limit (CSL) that pays claims from the same limit without having the split limit caps.

Liability insurance covers claims like bail bonds, court costs, legal defense fees, repair bills for other people’s vehicles and loss of income. How much liability coverage do you need? That is up to you, but it’s cheap coverage so purchase as much as you can afford.

Collision coverage protection

This coverage pays for damage to your Sierra 2500 resulting from colliding with another car or object. You have to pay a deductible then your collision coverage will kick in.

Collision insurance covers claims like damaging your car on a curb, backing into a parked car and colliding with another moving vehicle. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from older vehicles. You can also raise the deductible in order to get cheaper collision rates.

Medical expense coverage

Coverage for medical payments and/or PIP reimburse you for immediate expenses for doctor visits, funeral costs, EMT expenses, hospital visits and X-ray expenses. They are used in conjunction with a health insurance policy or if there is no health insurance coverage. Coverage applies to not only the driver but also the vehicle occupants as well as getting struck while a pedestrian. Personal injury protection coverage is not universally available but it provides additional coverages not offered by medical payments coverage

Comprehensive protection

This pays for damage that is not covered by collision coverage. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.

Comprehensive insurance covers things like a tree branch falling on your vehicle, damage from flooding, hitting a bird and theft. The maximum amount you’ll receive from a claim is the cash value of the vehicle, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.

Buy online or local, you save

Lower-priced 2002 GMC Sierra 2500 insurance is possible from both online companies and with local insurance agents, so you should be comparing quotes from both to have the best chance of lowering rates. Some insurance companies do not offer online price quotes and many times these regional insurance providers only sell through independent insurance agents.

We covered many tips how you can reduce insurance prices online. It’s most important to understand that the more rate quotes you have, the better chance you’ll have of finding lower rates. Consumers may even find the most savings is with a smaller regional carrier.

Insureds leave their current company for many reasons like delays in paying claims, unfair underwriting practices, high prices or even an unsatisfactory settlement offer. Whatever your reason, switching companies is not as hard as you think.

Much more information about auto insurance can be found at these links: