Have you fallen victim to an underperforming, overpriced car insurance policy? Trust us when we tell you you’re not the only one. Insurance companies such as Progressive, GEICO and Farmers Insurance all claim big savings with TV and radio ads and it is difficult to see past the geckos and flying pigs and take the time to shop coverage around.
Consumers need to have an understanding of some of the elements that come into play when calculating auto insurance rates. Having a good understanding of what determines base rates empowers consumers to make smart changes that could result in much lower annual insurance costs.
The list below includes a few of the “ingredients” used by your company to calculate premiums.
The quickest method to compare rate quotes is to understand most of the bigger providers participate in online systems to compare their rates. To begin a comparison, all you need to do is provide a small amount of information like if you went to college, types of safety features, deductibles desired, and which vehicles you own. The rating information is automatically sent to all major companies and they respond with quotes within a short period of time.
Consumers can’t get away from ads for cheaper car insurance from companies such as Allstate, GEICO and Progressive. They all seem to say the same thing that you can save if you switch your policy.
How do they all claim to save you money?
Insurance companies are able to cherry pick for the type of customer that is profitable for them. An example of a profitable customer could be between 25 and 40, has no driving citations, and drives newer vehicles. A driver who matches those parameters will get the preferred rates and therefore will cut their rates substantially.
Potential customers who don’t measure up to the requirements must pay a higher premium which usually ends up with business not being written. The ad wording is “customers who switch” not “people who quote” save that much money. This is how insurance companies can confidently state the savings.
This illustrates why you absolutely need to get as many quotes as possible. You cannot predict which insurance company will have the lowest Subaru Tribeca insurance rates.
Insurance can be prohibitively expensive, but there are discounts available that you may not even be aware of. Certain discounts will be applied when you get a quote, but a few must be requested specifically prior to getting the savings. If you aren’t receiving every discount available, you are throwing money away.
A little note about advertised discounts, many deductions do not apply to the entire policy premium. Some only reduce individual premiums such as comp or med pay. Even though it may seem like adding up those discounts means a free policy, auto insurance companies aren’t that generous. Any qualifying discounts will reduce your overall premium however.
To see a list of insurance companies with discount auto insurance rates, click here to view.
When buying proper insurance coverage for your vehicles, there is no single plan that fits everyone. Everyone’s situation is a little different so this has to be addressed. These are some specific questions can aid in determining if your situation would benefit from professional advice.
If you can’t answer these questions but you think they might apply to your situation then you might want to talk to a licensed agent. To find an agent in your area, fill out this quick form or you can also visit this page to select a carrier It’s fast, doesn’t cost anything and you can get the answers you need.
Learning about specific coverages of a insurance policy aids in choosing the best coverages at the best deductibles and correct limits. Policy terminology can be difficult to understand and even agents have difficulty translating policy wording. Listed below are the usual coverages offered by insurance companies.
Uninsured/Underinsured Motorist (UM/UIM) – Your UM/UIM coverage gives you protection from other drivers when they are uninsured or don’t have enough coverage. It can pay for hospital bills for your injuries and damage to your Subaru Tribeca.
Since 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 important protection for you and your family. Most of the time these coverages are similar to your liability insurance amounts.
Liability auto insurance – This coverage provides protection from damage that occurs to other’s property or people. It protects you from legal claims by others, and does not provide coverage for damage to your own property or vehicle.
Liability coverage has three limits: bodily injury per person, bodily injury per accident and property damage. You might see values of 100/300/100 that translate to a $100,000 limit per person for injuries, a limit of $300,000 in injury protection per accident, and $100,000 of coverage for damaged propery. Alternatively, you may have a combined single limit or CSL which provides one coverage limit without having the split limit caps.
Liability can pay for things like medical services, pain and suffering, legal defense fees and emergency aid. The amount of liability coverage you purchase is a decision to put some thought into, but buy higher limits if possible.
Med pay and Personal Injury Protection (PIP) – Medical payments and Personal Injury Protection insurance pay for short-term medical expenses such as X-ray expenses, pain medications, EMT expenses, prosthetic devices and nursing services. The coverages can be utilized in addition to your health insurance plan or if you do not have health coverage. It covers all vehicle occupants and also covers any family member struck as a pedestrian. Personal Injury Protection is not available in all states but can be used in place of medical payments coverage
Collision – Collision coverage covers damage to your Tribeca resulting from a collision with an object or car. You will need to pay your deductible then your collision coverage will kick in.
Collision insurance covers things such as sustaining damage from a pot hole, crashing into a ditch, colliding with another moving vehicle and backing into a parked car. This coverage can be expensive, so you might think about dropping it from vehicles that are 8 years or older. You can also bump up the deductible to get cheaper collision coverage.
Comprehensive insurance – This covers damage OTHER than collision with another vehicle or object. A deductible will apply then your comprehensive coverage will pay.
Comprehensive coverage protects against things like rock chips in glass, a tree branch falling on your vehicle and fire damage. The maximum amount your insurance company will pay is the ACV or actual cash value, so if it’s not worth much more than your deductible consider removing comprehensive coverage.
As you shop your coverage around, you should never reduce needed coverages to save money. Too many times, an insured cut liability limits or collision coverage only to regret that they should have had better coverage. Your focus should be to find the BEST coverage at a price you can afford.
We covered many ideas to lower your 2009 Subaru Tribeca insurance rates. The key thing to remember is the more providers you compare, the better your chances of lowering your rates. You may even discover the best prices are with a lesser-known regional company. Smaller companies may cover specific market segments cheaper compared to the large companies like Progressive or GEICO.
Cheaper insurance is definitely available on the web as well as from independent agents, and you should be comparing both so you have a total pricing picture. Some insurance providers don’t offer online price quotes and most of the time these regional insurance providers sell through independent agents.
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