Car Insurance Quotes - How much can you save online?
Auto Insurance is one of the biggest insurance cost for most Americans, and a lot of people feel like they just have to "suck it up" and don't have much choice - after all, it's mandatory for anyone who drives on the open road. The good news is that even though you DO need to have cover, you DON'T need to pay through the nose for it.
Most people don't realise they are paying 10-20% more than they have to for their auto insurance simply by allowing their premiums to roll over year after year without checking if their current insurer is the best value. According to MSN Money the #1 cause of overpaying for insurance is very simple - not shopping around.
Even if you got a great deal when you first took out your policy (and chances are you didn't), you can probably STILL save a fair amount - Just because your current insurer was the best value when you took out your cover, doesn't mean they still are - in fact the opposite is usually true. The simple fact is this:
If you haven't compared quotes you're probably being overcharged
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This "premium creep" is a standard tactic that insurers don't want you to know about. They count on customers being too lazy to check their options and simply jump up the premiums each year, especially with young drivers. In fact some insurers will discount inital premiums in order to acquire good business, knowing that they will make up the difference over time. This practice works very well in general, as most people just can't be bothered looking into it, forget or don't think there's any point.
Don't all Insurers use the same premium calculations?
The short answer here is both yes and no. Yes, they all consider the same things ("risk factors") when determining your premium, but they each place a different emphasis or weighting on them. Some auto insurers have designated target markets and offer more attractive rates to customers that fit within those demographics, for example women between the ages of 35 and 50. This is generally based on their claims experience, who they consider the safest risk, who is the more profitable business to attract and maintain, and the likelyhood of being able to also capture other policies such as home, health or life insurance if they offer these products. Likewise, other vehicle insurers may focus on attracting, or avoiding, specific types of risk. For example, insurer "A" may charge more for collision cover than other carriers, while insurer "B' may charge more for theft cover. Depending on what sort of cover you need, different providers will be able to offer you better prices on your car insurance. Here's a simple and effective example to prove this point:
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The insurance industry is very fluid, with different insurers changing premium weightings over time, and your own circumstances changing as well. As a result it's worth keeping an eye on your premiums and looking at where you might be able to make savings. It's not uncommon for people to be able to save hundreds of dollars a year by refining their insurance arrangements and realising they no longer need some of the cover they have, or that they are eligible for discounts they didn't realise, or may not have been in the past.
No Such Thing as a Free Lunch?
Why would insurers compete with each other to give you lower prices? The simple answer to this is that they want to acquire their competitors business. It makes good business sense to try and attract new business at the expense of your competitors, so some insurers actively and aggressively look to "steal" customers off their competition by offering attractive prices on their cover. Perhaps they are operating on the premise that they will increase the premiums over time, but what this means is that in the mean time you are benefitting from lower premiums. Then, when it's time to renew the policy, if the renewal premium is significantly higher, go ahead and do another price comparison. In this way you can benefit from whatever insurer is actively trying to gain market share at the time.
Cheaper = Better?
While it's always tempting to grab the lowest price around, cheaper isn't always better. Remember that your insurance is only as good as your ability to claim, and it's how your insurance provider responds at claim time that really matters. While you're looking at prices for your auto insurance, do a little research on the customer feedback for the insurer as well. The cheapest quote may well come from an insurer that has a great reputation as well, but it pays to check with an independent review site like comsumer affairs to see what others have to say about the insurer before you sign on the dotted line.
Keeping Auto Insurance Simple
We've made getting free car insurance quotes quick and easy with our specialised insurance offers search tool above. Simply choose your location and the auto insurance search tool will display a list of insurers in your area. These insurers are actively competing to acquire new business and offer free quotes and special offers. You can select quotes from multiple providers and compare rates which allows you to get the most affordable insurance deals you can.
Most customers report an average saving of 10%+ on their current premiums.
It's also vitally important to be aware of exactly what sort of insurance you need for your vehicle if you want to keep your premiums down. Liability cover is a must and there is generally a minimum level of liability insurance that differs from state to state, but it's often wise to go above the minimums. If you're trying to keep your overall costs to a minimum then liability insurance is a must, but you can probably afford to cut back on some other types of cover, such as collision cover, or theft. It's not always about trimming down the rate that you pay for your insurance, one of the best ways to keep your premiums down is to trim down the level of cover instead. If your vehicle isn't worth all that much then it may well not be worth paying for insurance to replace it, afterall with the premium savings created by excluding this level of cover you may be able to buy a different vehicle in a couple fo years anyway!
This is another way in which getting your quotes online can make a big difference. By being able to compare quotes online through sites like www.21st.com and modify your level of cover you can quickly and easily see what is costing you the most in terms of premiums, and get the best value for your premium dollar.
When looking at where to cut down your cover though, it's best not to skimp on liability protection. This should be considered your primary need, as most costs following a car crash revolve around the at-fault party's liability, and these claims can easily range in the tens of thousands of dollars. Consider getting rid of collision cover or theft cover rather than reducing you liability cover as a rule of thumb. You can also do yourself a favour by reaearching what sort of vehcles are more prone to theft - this may have a direct bearing on your premiums. So, for our Texas viewers, before you head over to Toyota Fort Worth and get your new car, check out the list of most commonly stolen vehicles first - the Camry for example currently ranks #3 so expect to pay more for insurance cover which includes theft on one of these.
What Sort of Cover Do you Need?
Why Online Quotes are Cheaper
While it's not always the case, often people are able to get cheaper prices by arranging their insurance online. There are a number of reasons for this, but the main ones are really that by using an online quote system, insurers are able to save on their costs, and therefore they are able to offer cheaper premiums to their customers that buy online. Additionally, there is no broker or middle-man who earns a commision on policies they arrange for the insurer. This also results in a cost reduction and therefore allows them to maintain profit margins while still offering more attractive prices and rates to their customers.
Aside from getting cheaper car insurance, you can also use our search tools to get affordable health insurance as well as sourcing competitive homeowners insurance quotes and checking out options for cheap term, or whole life cover. Given how much the average person spends on insurance per year, a saving of 10-20% could fund an upgrade on your car, or even a vacation - why throw that money away unnecessarily, especially when getting your car insurance quotes online is so easy?
