How to Know You're Wasting Money for Auto Insurance in Brainerd

Did you fall for a flashy sales pitch and buy an underperforming, overpriced auto insurance policy? Trust us when we tell you there are many people just like you. Popular companies such as State Farm, Allstate, GEICO and Progressive all promote huge savings with fancy advertisements and consumers find it hard to sift through the bull and take the time to shop coverage around.

If you are insured now or need a new policy, you will benefit by learning to find better prices while maximizing coverage. Finding affordable coverage in Brainerd is quite easy. Minnesota drivers only need an understanding of the most efficient way to compare rates online.

You have some control over your rates

Consumers need to have an understanding of some of the elements that come into play when calculating auto insurance rates. Having a good understanding of what determines base rates enables informed choices that could result in big savings.

The list below includes some of the items auto insurance companies consider when setting premiums.

  • Protect your assets with liability insurance - The liability section of your policy provides coverage if a jury decides you are liable for causing damage or personal injury in an accident. It provides you with a defense in court which can cost thousands of dollars. Carrying liability coverage is mandatory and cheap compared to insuring for physical damage coverage, so buy as much as you can afford.
  • Safe vehicles cost less to insure - Vehicles with good safety scores are cheaper to insure. Safe vehicles reduce injuries and better occupant protection means lower claim amounts and more competitive rates for policyholders.
  • Rates may be higher depending on your occupation - Occupations such as real estate brokers, architects and dentists tend to have the highest average rates because of job stress and lots of time spent at work. Other occupations like actors, historians and the unemployed receive lower rates.
  • High numbers of claims are not good - Auto insurance companies in Minnesota provide cheaper rates to policyholders who are claim-free. If you file claims often, you can definitely plan on higher rates. Insurance coverage is intended to be relied upon for the large, substantial claims.
  • Where you live is a factor - Choosing to live in less populated areas is a positive aspect when buying auto insurance. Less people living in that area translates into fewer accidents and a lower car theft rate. Drivers in populated Minnesota areas tend to have more traffic problems and a longer drive to work. Longer commute distances means higher likelihood of an accident.
  • Your car's features help determine rates - Choosing a vehicle with an alarm system can help bring down rates. Anti-theft devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can thwart your car from being stolen.
  • Little extras can really add up - There are a lot of extra coverages that you can get tricked into buying if you aren't careful. Insurance for vanishing deductibles, accidental death and term life insurance are examples of these. They may seem good when you first buy your policy, but if they're wasting money eliminate the coverages to reduce your premium.

Policy discounts you shouldn't miss

Insurance can cost an arm and a leg, but there could be available discounts that can drop the cost substantially. Certain discounts will be applied at the time of purchase, but some may not be applied and must be manually applied prior to receiving the credit. If you aren't receiving every discount possible, you are paying more than you should be.

  • Organization Discounts - Affiliation with a civic or occupational organization could qualify you for a break when buying auto insurance.
  • Service Members Pay Less - Having a deployed family member can result in better rates.
  • No Accidents - Drivers with accident-free driving histories pay less when compared with accident-prone drivers.
  • Drivers Ed for Students - Cut your cost by having your teen driver enroll in driver's education in high school.
  • Federal Government Employee - Employees or retirees of the government may qualify you for a discount depending on your company.
  • Discount for Life Insurance - Larger companies have better rates if you take out auto and life insurance together.
  • New Vehicle Savings - Putting insurance coverage on a new car can cost up to 25% less due to better safety requirements for new cars.
  • Defensive Driving Course - Taking part in a course teaching defensive driving skills could possibly earn you a 5% discount if your company offers it.

Consumers should know that most of the big mark downs will not be given the the whole policy. Most only cut individual premiums such as physical damage coverage or medical payments. Just because it seems like all those discounts means the company will pay you, companies don't profit that way. Any qualifying discounts will reduce the amount you have to pay.

To choose insurers with the best auto insurance discounts in Brainerd, follow this link.

Save $429 a year? Really?

Minnesota drivers can't ignore all the ads that promise big savings by Allstate, GEICO and Progressive. All the companies say the same thing of big savings if you move to their company.

How can each company say the same thing?

All the different companies are able to cherry pick for the driver that makes them money. A good example of a profitable customer might be profiled as between the ages of 30 and 50, has no tickets, and drives less than 7,500 miles a year. A propective insured who fits that profile will qualify for the lowest rates and is almost guaranteed to save when they switch companies.

Potential customers who don't qualify for the requirements must pay higher prices which usually ends up with business not being written. The ad wording is "customers that switch" but not "drivers who get quotes" save that much. That's the way insurance companies can confidently advertise the way they do.

This illustrates why you should compare many company's rates. It's not possible to predict which auto insurance company will provide you with the cheapest rates.

Find out more about auto insurance

Additional auto insurance information can be read on the website for the Minnesota Department of Commerce located here. Minnesota drivers can find out which companies have the most complaints, find disaster information, read industry bulletins, and download brochures.

auto insurance in Brainerd

And the best car insurance company is...

Cost effective auto insurance is definitely available on the web and also from your neighborhood Brainerd agents, and you should compare price quotes from both so you have a total pricing picture. Some auto insurance companies may not provide online price quotes and usually these small insurance companies provide coverage only through local independent agents.

When shopping online for auto insurance, it's not a good idea to buy poor coverage just to save money. In too many instances, an insured dropped collision coverage and discovered at claim time that a couple dollars of savings turned into a financial nightmare. Your focus should be to purchase a proper amount of coverage at a price you can afford while not skimping on critical coverages.