Are you thinking about shopping around for car insurance? Many people do not ever shop around for insurance. This is not good. In America, loyalty is punished instead of rewarded.
Car insurance ads promise that they offer vanishing deductibles, accident forgiveness and many other selling points. However, those are not the only things that you should pay attention to when you are selecting a car insurance company. You should make sure that the car insurance company is known for satisfying its customers.
The Best and Worst Car Insurance Companies
Amica Insurance and USAA Property & Casualty are two of the best insurance companies in America. New Jersey Manufacturer Insurance Company is one of the least popular companies. American Family, State Farm, Mercury and Geico are some of the companies that are considered fair.
Hanover Insurance and Farmers Insurance are some of the lowest-rated insurance companies. Travelers, Liberty Mutual, Allstate and Metlife Auto & Home are a step above the aforementioned companies. It is important to make sure that the deductible is not too low. If you have a low deductible, then you will have to pay more for your premium.
Auto Insurance Rates are Increasing
Most people are well aware of the fact that car insurance rates are increasing. In fact, low-risk drivers are paying 10 percent more this year than they did last year. Americans are driving more because the gas prices are lower. That is why auto insurance rates are higher.
Three Reasons People are Paying More
- More Americans are driving because the job market is improving. This means that car accidents are more likely to occur. Car accidents increased by eight percent from 2014 to 2015.
- Increased speed is another thing that has contributed to rising insurance rates. Twelve states have increased their speed limit from 70 to 80 miles per hour.
- The average cost of a car is around $30,000. The more expensive a car is, the more it will cost to cover.
What can I do to Lower the Cost?
Premiums are going up, but there are some things that you can do in order to lower the cost of it. Here is a list of things that you can do:
Identify Solid Companies
USAA and Amica are the best companies. However, they are not the only ones that you should look at. You can buy a subscription to Consumer Reports. You will be able to find a list of quality insurance companies.
Get Quotes
Once you have found a few insurance companies, you will need to start getting some quotes. It will only take about 15 minutes to get a quote over the phone. You can also work with an insurance company.
Compare Quotes
Once you have received a few quotes, you will need to compare them. Make sure that you consider the amount of coverage you will be getting. Even if you get a great quote, you should ignore it if it comes from a company that has low ratings.
Know When to get Rid of Collision and Comprehensive
The cost of collision and comprehensive should not cost more than 10 percent of the value of your vehicle. For example, the value of your vehicle is $5,000. You should not be spending more than $500 per year on collision and comprehensive coverage.
Be Willing to Pay More for a Deductible
You should opt to pay at least $1,000 for your deductible. This will allow you to get the most savings.
Discounts
You can get discounts for the following things:
- Anti-theft devices
- Drivers Ed courses
- Insuring multiple cars
- Going three or more years without an accident
- Good grade discounts
- Long-time customer discount
- Low-mileage driver
