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How to Get the Most Auto Insurance Coverage for the Money

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Auto insurance will cost you, but savings can be had.

The cost of auto insurance puts a huge dent in some wallets. Drivers in Michigan, Louisiana, and Oklahoma pay far above the national average while drivers in Maine pay the least.[1] Among auto insurers, rates can vary widely, and consumers don’t always know why they’re being charged so much.

You can’t do much about the state where you live—besides moving—but you can get the most coverage for your money by keeping some things in mind as you shop for auto insurance.

Credit Matters

Your credit history reflects on what you pay for auto insurance. Insurers develop an “insurance-risk score” or “insurance credit scoring” based in part on your credit score, theorizing that you’re less likely to file a claim if you have good credit.[2] Your credit score is easily available to you, but your insurance score is not (typically, you’ll have to visit a credit monitoring service such as TransUnion to find it, not your insurance company). In any case, if your credit score is high, then your insurance rates should reflect your insurability.

Personal Demographics

Your marital status, gender, age and the city where you live are factors in determining insurance premiums. The last category can make a big difference in what you pay—if your zip code or street address is coded wrong, you might be charged a rate far above what you should be paying.[3] Therefore, it is important to review your declarations page for accuracy.

What You Drive

Before purchasing that turbocharged sports coupe, contact your auto insurer to get a quote for car insurance. Indeed, your agent can tell you which cars cost the most to insure in any given vehicle segment. Engine size isn’t the only consideration: insurers charge more for cars that don’t hold up as well in an accident. They may also raise rates for cars without recent safety features including side curtain airbags, rearview cameras, and lane departure warning.[4]

Your Driving Record

If you have tickets, then you may have points on your driving record. Points send a signal to auto insurers to raise your rates based on an algorithm set by each insurer. Your insurer won’t tell you how that works, but you can contact your Department of Motor Vehicles to obtain your driving record. If old points have not been removed from your record or points have been wrongly assigned to your record, you can have the DMV make the correction and forward a copy of your updated record to your insurer.[5]

Seek Discounts

Insurance companies offer discounts for drivers who drive just a few thousand miles in one year. Further, discounts are offered if you insure your auto and home with the same company, have been with that company for several years, are a safe driver or have recently completed a driver’s training course. Ask your insurance agent about available discounts—information that’s not always readily volunteered.[6]

Shop Around

Get at least three price quotes from different insurers with similar coverage to make comparisons easier. You may be able to save money by dealing directly with a company over the phone or via the Internet instead of through an insurance agent.

If you belong to an alumni association, a business group or some other association, a group plan can offer additional discounts. Moreover, ask your employer if the company offers a group plan for its employees and their families.

Save Money

It pays to review your auto insurance policy annually as it may reveal overlooked discounts or even mistakes that are costing you money. Never assume your policy reflects your current information as your address may have changed, drivers may have been added or dropped, or other factors may influence what you pay.

Sources

[1] Insure.com: Car insurance rates by state, 2019 edition — https://www.insure.com/car-insurance/car-insurance-rates.html

[2] The Balance: What is Insurance Credit Scoring? https://www.thebalance.com/what-is-insurance-credit-scoring-4156729

[3] The New York Times: Your Neighbor in an Adjacent ZIP Code May Pay Less for Car Insurance — https://www.nytimes.com/2018/10/19/your-money/car-insurance-neighbor-zip-code.html

[4] Insurance Information Institute: What determines the price of an auto insurance policy? — https://www.iii.org/article/what-determines-price-my-auto-insurance-policy

[5] North Carolina Department of Motor Vehicles: Driving Records — https://www.ncdot.gov/dmv/offices-services/records-reports/Pages/driving-records.aspx

[6] Allstate: 6 Car Insurance Discounts That May Save You Money — https://www.allstate.com/tr/car-insurance/tips-for-car-insurance-discounts.aspx

See Also — IIHS Crash Testing and Your Insurance Premiums

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What You Must Do Following a Car Accident

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Getting into a car accident is no small matter. Your problems and grief are compounded if someone was seriously hurt or killed. Regardless of the extent of the casualties, there are some things you must do immediately following a car accident.

1. Pull off the road.

If possible, pull off the road and as far off the shoulder as you can. Moving a car may not be possible due to damage and personal injuries. If the vehicles cannot be moved, ensure that oncoming traffic sees you. This may include asking other motorists to pull up, drop flares, turn on emergency signals, and stay with you until help arrives.

2. Check the condition of each passenger.

If the injuries are minor, then the urgency for medical help is not so great. Even so, you need to verify the condition of the people in your car as well as in the other cars. If you know first aid, then begin to apply it. Ask someone else to call for emergency assistance. The greater the injuries, then the more that time is of the essence. Ask for help from others who arrive at the scene. A medical practitioner can perform first aid and stabilize the injured.

3. Await the police.

Unless your accident is minor and is composed only of a fender bender, you’ll need to have the police on hand to file a report. That report should be available a few days after the accident, therefore obtain a copy to forward to your insurance company as quickly as possible. If you handle the accident without the police being present, then exchange all pertinent information, including driver’s licenses, registration, insurance information, and contact numbers. Write this information down, but if you don’t have a pen handy, taking pictures of the documents with your smartphone is another option. When talking with the police, never admit guilt. Simply explain your story and allow them to draw the conclusions.

4. Contact your insurance company.

Once all people have been stabilized and your report taken, contact your insurance company. If your car is not movable, you’ll need to call for a towing service too. Your insurer or your auto club should be able to send a wrecker. When talking to your insurance company, provide as much information about the accident as required. Your insurer will send out a claims adjuster to look at the car and make a declaration based on the damage. If there are personal injuries, you’ll be submitting those bills too. If you are not certain about how the process works, your insurance representative is there to help you. Ask questions and listen carefully for the answers.

5. Follow up.

Your work isn’t done even if after you receive a check from your insurance company. If the car is repairable, then you’ll need to take it to a collision repair shop to have it worked on. If possible, get at least three estimates. Compare the rates, check references, and go with the company with the best reputation. Certainly, price matters, but you need to get the job done correctly. If your car has been totaled, then you will need to shop for a new car. In the interim, your insurance company may have a rental car to keep you behind the wheel until you’re able to repair or replace your current model.

After Crash Considerations

When you have a car accident, you want to be made whole. Your insurer will help rectify the problem and will go after the other insurance company, if necessary. If the settlement amount does not suit you, then file an appeal with your insurer. In some cases, you may have to retain an attorney to ensure that your rights and financial position are protected.

Lastly, If you’re battling with personal injuries or someone you love has been hurt, then make sure you’re getting all the help required too. This is where a personal accident attorney may be able to intervene, to ensure that your disability claims and ongoing medical needs, as well as your financial losses, are addressed.

See Also — What You Need to Know About Rollover Accidents

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