Anyone knows that insurance companies don’t want you to look at other companies. Consumers who shop around for cheaper rates are highly likely to buy a different policy because there is a high probability of finding a more affordable policy premium. Surprisingly, a recent survey revealed that drivers who compared prices once a year saved as much as $850 each year compared to people who don’t make a habit of comparing rates.
If finding the cheapest rates on car insurance is your objective, knowing how to choose a company and compare coverages can make it simple to find affordable coverage.
If saving the most money is your goal, then the best way to find better pricing on car insurance rates is to start doing a yearly price comparison from insurers who can sell car insurance in Orlando.
- Try to learn a little about how companies price auto insurance and the factors you can control to prevent high rates. Many things that are responsible for high rates like traffic violations and a negative credit history can be controlled by paying attention to minor details.
- Compare rates from direct, independent, and exclusive agents. Direct and exclusive agents can provide rates from a single company like GEICO or Allstate, while independent agencies can provide price quotes from multiple companies. Find an Orlando insurance agent
- Compare the quotes to the price on your current policy to determine if switching companies saves money. If you can save money and decide to switch, make sure coverage does not lapse between policies.
- Give notification to your agent or company of your intent to cancel your current auto insurance policy. Submit payment and a completed application to your new company or agent. Don’t forget to safely store the proof of insurance certificate in an accessible location in your vehicle.
One bit of advice is to try to compare identical coverages on each quote request and and to look at as many car insurance companies as possible. This enables a fair rate comparison and a complete price analysis.
Eight Things That Determine Your Insurance Prices
Multiple criteria are used when premium rates are determined. Some are obvious like an MVR report, although others are not as apparent like where you live and annual miles driven.
The list below includes a few of the things utilized by car insurance companies to help set premiums.
- Never let your car insurance lapse – Driving any period of time without insurance is illegal and you may have a hard time finding new coverage because you let your insurance lapse for non-payment. In addition to paying higher premiums, being ticketed for driving with no insurance could result in a steep fine or even jail time.
- Credit score impacts rates – Credit rating can be an important factor in determining what you pay. Consumers who have high credit ratings tend to be less risk to insure than drivers with worse credit. If your credit history leaves room for improvement, you could save money insuring your Hummer H2 by improving your credit score.
- Cheaper rates with high coverage deductibles – Physical damage protection, commonly called comprehensive (or other-than-collision) and collision coverage, covers damage that occurs to your Hummer. Some examples of claims that would be covered are colliding with a building, vandalism, and rolling your vehicle. Comprehensive and collision coverage deductibles are how much the insured will be required to pay in the event of a claim. The more expense the insured has to pay upfront, the lower your rates will be.
- Cut car insurance rates and deter theft – Selecting a car model that has an advanced theft prevention system can save you a little every year. Theft prevention features such as vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems can help prevent car theft and help bring rates down.
- Urban residents pay more – Choosing to live in a small town is a positive aspect if you are looking for the lowest rates. Fewer drivers translates into fewer accident claims. Drivers in populated Florida areas tend to have much more traffic and much longer commute distances. The longer drive time means more chance of being in an accident.
- Avoid unnecessary add-on coverages – There are many extra add-on coverages that you can buy on your car insurance policy. Things like vanishing deductibles, towing coverage, and membership fees are some examples. They may seem like a good idea at first, but if you have no use for them remove them and pocket the money.
- Consolidating policies can get discounts – Most major companies will award a discount to policyholders who consolidate policies with them in the form of a multi-policy discount. If you currently are using one company, it’s still a good idea to shop around to make sure you are getting the best deal.
- Insurance costs are higher for high performance vehicles – The performance of the vehicle you drive makes a substantial difference in your premium level. Lower cost passenger vehicles generally have the cheapest insurance rates, but your final cost has many other factors.
Do you qualify for discounts?
Car insurance can be pricey, but there could be available discounts to reduce the price significantly. Certain credits will be shown when you purchase, but some may not be applied and must be asked for in order for you to get them.
- Discount for Passive Restraints – Factory air bags may get savings as much as 30%.
- Discounts for Federal Employees – Active or retired federal employment may reduce rates when you quote Orlando car insurance depending on your car insurance provider.
- Senior Citizen Rates – Drivers that qualify as senior citizens could receive a small decrease in premiums.
- Student Discounts – Excelling in school may save as much as 25% on a Orlando car insurance quote. Many companies even apply the discount to college students up to age 25.
- Anti-lock Brakes – Vehicles that have anti-lock braking systems can reduce accidents and therefore earn up to a 10% discount.
- College Student Discount – Any of your kids who are enrolled in a college that is more than 100 miles from Orlando without a vehicle on campus could get you a discount.
- Defensive Driver Discount – Passing a defensive driving course could save 5% or more if your company offers it.
As a disclaimer on discounts, most discount credits are not given to the overall cost of the policy. Most only reduce individual premiums such as liability, collision or medical payments. So even though you would think you can get free auto insurance, you aren’t that lucky.
Companies and some of the discounts are shown below.
- Mercury Insurance has savings for multi-car, type of vehicle, annual mileage, low natural disaster claims, and multi-policy.
- Farmers Insurance offers discounts including mature driver, homeowner, teen driver, alternative fuel, business and professional, bundle discounts, and electronic funds transfer.
- Farm Bureau offers premium reductions for 55 and retired, multi-vehicle, good student, safe driver, and multi-policy.
- State Farm discounts include passive restraint, safe vehicle, multiple policy, good driver, and anti-theft.
- Allstate may include discounts for EZ pay plan discount, premier plus, farm vehicle, safe driver, passive restraint, defensive driver, and anti-theft.
- GEICO policyholders can earn discounts including five-year accident-free, anti-lock brakes, military active duty, emergency military deployment, membership and employees, and multi-vehicle.
Before you buy a policy, ask all companies you are considering the best way to save money. Some credits might not be available to policyholders in Orlando.
How much can you save?
There are still a few companies who do not provide online rate quotes and usually these smaller companies work with independent agents. More affordable car insurance in Orlando is possible both online in addition to many Orlando insurance agents, so you should compare both so you have a total pricing picture.
As you quote Orlando car insurance, don’t be tempted to buy lower coverage limits just to save a few bucks. There have been many cases where an insured dropped collision coverage and learned later that the few dollars in savings costed them thousands. Your focus should be to find the BEST coverage at the lowest possible cost while still protecting your assets.
- Five Steps to Filing an Auto Insurance Claim (Insurance Information Institute)
- Who Has Affordable Auto Insurance Quotes for Drivers with a DUI in Orlando? (FAQ)
- Who Has Affordable Orlando Auto Insurance for Used Cars? (FAQ)
- Who Has the Cheapest Auto Insurance Rates for a Dodge Grand Caravan in Orlando? (FAQ)
- What Insurance is Cheapest for College Students in Orlando? (FAQ)
- Honda warning system reduces insurance claims (Insurance Institute for Highway Safety)
- Auto Insurance 101 (About.com)
- Keeping Children Safe in Crashes Video (iihs.org)
- Comprehensive Coverage (Liberty Mutual)