I can’t think of anyone who looks forward to buying car insurance, particularly when they are paying too much. Popular companies such as Allstate, Progressive and GEICO all promote huge savings with fancy advertisements and it is difficult to separate fact from fiction and take the time to shop coverage around.
If you are insured now or are looking for a new policy, you can use this information to reduce the price you pay while maximizing coverage. Finding affordable coverage is not rocket science. Texas consumers just need to understand the best way to shop online.
Mitsubishi Precis rate determination is complex
It’s important that you understand the different types of things that go into determining car insurance rates. Knowing what controls the rates you pay helps enable you to make changes that will entitle you to better car insurance rates.
Listed below are a few of the “ingredients” that factor into prices.
- Sex matters – Statistics have proven that men are more aggressive behind the wheel. Now that doesn’t mean men are WORSE drivers than women. Men and women tend to get into accidents at about the same rate, but men tend to have more serious accidents. Men also get more serious tickets such as DWI and reckless driving.
- Rates may be lower depending on your job – Did you know your occupation can influence how much you pay for car insurance? Occupations like judges, architects and accountants have higher rates than average attributed to high stress and long work days. On the flip side, occupations such as farmers, athletes and homemakers get better rates on Precis insurance.
- Add-on coverages can add up – There are a ton of additional coverages that can waste your money when buying car insurance. Coverages like personal injury protection, accident forgiveness and term life insurance may be wasting your money. They may seem like a good idea when talking to your agent, but if they’re wasting money get rid of them and save.
- Tickets mean higher rates – Even one citation may increase your cost by as much as thirty percent. Drivers with clean records tend to pay less for car insurance compared to drivers with tickets. If you have flagrant violations like hit and run, DWI or reckless driving convictions may find they need to submit a SR-22 or proof of financial responsibility with the DMV in their state in order to keep their license.
- Do you know you’re credit rating? – A driver’s credit score is a huge factor in determining your rates. Therefore, if your credit rating is lower than you’d like, you could pay less to insure your Mitsubishi Precis by repairing your credit. Consumers who have high credit ratings tend to be less risk to insure than drivers with poor credit.
- Protect your assets with liability insurance – The liability section of your policy is the protection if ever a jury decides you are liable for personal injury or accident damage. It provides legal defense coverage which can cost thousands of dollars. This coverage is very inexpensive compared to insuring for physical damage coverage, so drivers should carry high limits.
Are you getting all your discounts?
The price of auto insurance can be rather high, buy you may qualify for discounts that many people don’t even know exist. Certain discounts will be triggered automatically when you complete an application, but lesser-known reductions have to be inquired about prior to receiving the credit. If you don’t get every credit you deserve, you’re just leaving money on the table.
- 55 and Retired – If you qualify as a senior citizen, you can possibly qualify for a small decrease in premiums on Precis insurance.
- Good Student – This discount can be rewarded with saving of up to 25%. Earning this discount can benefit you up until you turn 25.
- Paperwork-free – A handful of insurance companies will give a small break just for signing your application on their website.
- Defensive Driving Course – Taking a course teaching defensive driving skills could cut 5% off your bill if you qualify.
- Homeowners Discount – Owning a house may earn you a small savings because owning a home demonstrates responsibility.
- Federal Government Employee – Being employed by or retired from a federal job could cut as much as 10% off on Precis insurance with select insurance companies.
- No Accidents – Drivers with accident-free driving histories pay less as compared to drivers who are more careless.
- Accident Forgiveness – Some insurance companies will allow you to have one accident before your rates go up if your claims history is clear prior to the accident.
- Multiple Policy Discount – If you insure your home and vehicles with the same company you may save up to 20% off your total premium.
- Theft Prevention System – Cars that have factory anti-theft systems are stolen less frequently and qualify for as much as a 10% discount.
Keep in mind that some credits don’t apply to the overall cost of the policy. Some only apply to specific coverage prices like physical damage coverage or medical payments. Even though it may seem like all the discounts add up to a free policy, it just doesn’t work that way. Any qualifying discounts will cut the cost of coverage.
The fine print in car insurance ads
Consumers in Texas constantly see and hear ads for car insurance savings by GEICO, State Farm and Progressive. They all make an identical promise that you’ll save big if you change to their company.
How does each company claim to save you money?
All companies are able to cherry pick for the type of driver that is profitable for them. For instance, a desirable insured could be between 25 and 40, has no driving citations, and drives newer vehicles. A propective insured who fits that profile will qualify for the lowest rates and most likely will save quite a bit of money when switching.
Potential insureds who don’t measure up to these standards will be quoted higher premiums and ends up with business not being written. The ads say “drivers who switch” not “everybody who quotes” save that kind of money. That’s why companies can advertise the way they do.
This emphasizes why you need to quote coverage with many companies. It’s just too difficult to predict the company that will provide you with the cheapest rates.
More information can be read on the website for the Texas Department of Insurance through this link. Consumers can read state legal mandates and laws, get help finding coverage, and report car insurance fraud.
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Final considerations
As you shop your coverage around, it’s very important that you do not skimp on critical coverages to save a buck or two. In too many instances, drivers have reduced physical damage coverage only to regret at claim time that a couple dollars of savings turned into a financial nightmare. Your strategy should be to buy a smart amount of coverage for the lowest price.
Affordable Mitsubishi Precis insurance can be bought from both online companies and with local Texas insurance agents, so you should be comparing quotes from both so you have a total pricing picture. Some insurance companies do not offer online quoting and many times these smaller companies only sell through independent insurance agents.