How to Know You're Paying Too Much for Car Insurance in Caro

I can't think of a single person who looks forward to paying for car insurance, especially when the cost is too high.

Companies like State Farm, Allstate, GEICO and Progressive constantly bombard you with TV and radio ads and it is challenging if not impossible to sift through the bull and effectively compare rates to find the best deal.

It's important to do rate comparisons periodically because rates are constantly changing. Despite the fact that you may have had the best rates a couple years back you can probably find a better price now. There is a lot of bad advice regarding car insurance on the internet, so we're going to give you some great ways to quit paying high car insurance rates.

Why some people pay less for insurance in Caro

Consumers need to have an understanding of some of the elements that help determine your car insurance rates. Having a good understanding of what influences your rates allows you to make educated decisions that can help you get lower car insurance prices.

The following are some of the items companies use to determine your rates.

Performance influences rates - The type of vehicle you drive makes a big difference in your rates. Lower performance four cylinder passenger cars receive the most favorable rates, but other factors influence the final cost greatly.
How's your driving record? - Good drivers receive lower rates compared to drivers with tickets. Just one speeding ticket can increase rates twenty percent or more. Drivers who get flagrant violations such as DWI, reckless driving or hit and run convictions may be required to file a proof of financial responsibility form (SR-22) with their state motor vehicle department in order to keep their license.
Men pay higher rates - Statistics show women are more cautious behind the wheel. However, this does not mean women are better drivers. Women and men cause accidents at a similar rate, but men have costlier accidents. Men also get cited for more serious violations such as reckless driving. Young males are several times more likely to be in an accident and are penalized with high car insurance rates.
Safer cars are cheaper to insure - Cars with high safety ratings are cheaper to insure. Safer cars result in less severe injuries and fewer injuries means less money paid by your insurance company and more competitive rates for policyholders.

More discounts equal less premium

Companies offering auto insurance do not list every available discount in a way that's easy to find, so the following is a list of some of the more common and the more hidden car insurance savings.

Early Switch Discount - A few companies offer discounts for switching to them prior to your current policy expiration. It's a savings of about 10%.
Good Student - This discount can get you a discount of up to 25%. The good student discount can last well after school through age 25.
55 and Retired - If you're over the age of 55, you may be able to get reduced rates.
Military Rewards - Having a deployed family member may qualify for rate reductions.
Anti-theft Discount - Anti-theft and alarm systems help deter theft and qualify for as much as a 10% discount.

Keep in mind that most credits do not apply to the entire policy premium. Some only reduce the cost of specific coverages such as medical payments or collision. So when the math indicates it's possible to get free car insurance, it just doesn't work that way.

To choose providers who offer car insurance discounts in Caro, follow this link.

Switch companies and save? Really?

Companies like State Farm and Allstate continually stream ads in print and on television. All the ads say the same thing that you can save after switching to them. How can each company make the same claim?

All companies have a certain "appetite" for the type of driver that makes them money. A good example of a preferred risk could be between the ages of 30 and 50, a clean driving record, and drives less than 10,000 miles a year. A customer who fits that profile will get very good rates and therefore will save when they switch companies.

Potential customers who do not match the requirements will be charged a higher premium which usually ends up with business going elsewhere. The ads say "people who switch" not "everyone that quotes" save money. That is how insurance companies can advertise the way they do. That is why you should get a wide range of price quotes. Because you never know which company will provide you with the cheapest rates.

It's not one size fits all

When buying coverage for your vehicles, there really is not a best way to insure your cars. Each situation is unique and a cookie cutter policy won't apply. Here are some questions about coverages that may help highlight if you might need an agent's assistance.

Does my car insurance cover rental cars?
Do I need to file an SR-22 for a DUI in Michigan?
Should I buy additional glass protection?
Do I have coverage when using my vehicle for my home business?
Does my personal auto insurance policy cover using my vehicle for business use?
Is rental equipment covered for theft or damage?

If you don't know the answers to these questions but one or more may apply to you, then you may want to think about talking to an agent. If you don't have a local agent, complete this form or click here for a list of car insurance companies in your area.

Additional detailed information can be read at the Michigan Office of Financial and Insurance Regulation website. Consumers can learn about specific coverages, file complaints about a company, learn about insurance regulations, and find disaster information.

Do the work, save more money

We just showed you a lot of tips how to save on car insurance. The most important thing to understand is the more you quote, the more likely it is that you will get a better rate. You may even discover the lowest rates come from a company that doesn't do a lot of advertising. Some small companies can often insure niche markets at a lower cost as compared to the big name companies such as .

As you go through the steps to switch your coverage, it's not a good idea to buy poor coverage just to save money. There have been many cases where someone dropped full coverage and found out when filing a claim that the savings was not a smart move. Your goal should be to find the BEST coverage at an affordable rate, not the least amount of coverage.

Affordable car insurance can be bought from both online companies and with local Caro insurance agents, and you should compare price quotes from both to have the best rate selection. Some car insurance companies do not offer online price quotes and many times these small insurance companies only sell through independent insurance agents.