Comparison Insurance Shopping Advice


To determ ine a customer's premium, an insurance company may look at the customer's loss history, the frequency of claims and projected future losses. It is extremely important to get plenty of quotes when shopping around for car insurance. Each company’s rates may vary astoundingly. If you do not shop around you may end up paying too much. One company may charge you three thousand dollars while another company can sane you one thousand two hundred by switching companies. Companies can also charge different rates depending on the neighborhood.

The first thing you should do is decide how much coverage you need. Missouri requires twenty five thousand dollars per person and fifty thousand dollars per accident in bodily injury coverage, along with ten thousand dollars for property damage. Illinois requires twenty thousand dollars per person and forty thousand dollars per accident for bodily injury and fifteen thousand dollars for property. You can choose to purchase a lot more for heavier coverage, two hundred fifty thousand dollars, five hundred thousand dollars and one hunded thousand dollars. The extra insurance is fairly cheap; it is wise to have a big insurance wall between personal assets and a plaintiff's lawyer in case of an accident. Think, if you hit a brand new Cadillac, is fifty thousand dollars enough. It is recommended to purchase at least enough insurance to equal your assets, even better double your assets.

You may also want to consider raising your deductible to lower your premium. A two hundred fifty dollar deductible could save you twenty percent on your premiums while a five hundred dollar deductible could save you fifty percent. If you can afford the five hunded dollars, you can save money by bearing a limited risk yourself. If you have an older car, check the replacement value in the “Blue Book” at your local library; next compare it with what you are paying for collision. Many people drop collision coverage on older cars with low replacement fees. Request discounts.

Some companies give discounts for students with “B” averages or better on the theory that intelligent people crash less. Married people crash less also, so tell them you are marries. You can also mention your anti-lock brakes, airbag and safe-driving record. If you do not smoke, you may get a discount figuring drivers are safer with two hands on the wheel. Some companies give discounts for people who insure vote car and house with them, or more than one car. The key is to ask. Once you have obtained a decent price, check out the company’s complaint record. The average complaint score in many states is one hundred. A higher number means more complaints, a lower number means fewer. If there are a lot of complaints there must be a reason.

You may also want to check the company’s financial strength from a big rating agency. Before arriving at the rental counter, check with your car insurance agency or credit card company to review your coverage. There is some coverage that may be useless to you or just not worth it. Rental car insurance or a collision damage waiver is often a waste because many drivers are already covered for damages to a rental car through their credit card company or regular auto insurance policy. In this instance, duplicating coverage can be an expensive mistake. Typically, car insurance agencies charge ten to fifteen dollars a day for the CDW, while twenty five dollars is common in big cities and tourist areas. On an annual basis, fifteen dollars is equal to a five thousand five hunded dollar premium.

Do you really need collision insurance? Collision coverage is usually the most expensive portion of auto insurance; it pays for the repair of your vehicle. If your car is not worth much consider dumping this coverage, especially if your car is ten times less than what you are paying to insure it. For example, if your premium is one hundred dollars and your car is worth one thousand or less, you should cancel the coverage.

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