How to Know You're Spending Too Much for Car Insurance in Chatham

Paying for high-priced car insurance can drain your bank account and put a big crunch on your finances. Comparison shopping is a smart way to tighten up your finances.

Insurance companies such as GEICO and Progressive constantly bombard you with ad campaigns and it can be hard to sift through the bull and find the best price available.

It's important to price shop coverage quite often because rates are constantly changing. Despite the fact that you may have had the lowest price on your last policy you can probably find a better price now. Block out anything you think you know about car insurance because you're about to find out one of the best ways to reduce your cost while improving coverage.

Learn How to Buy Car Insurance Cheaper

Consumers need to have an understanding of some of the elements that help determine your car insurance rates. Having a good understanding of what impacts premium levels helps enable you to make changes that can help you get better car insurance rates.

How's your driving record? - Drivers with clean records have lower premiums compared to drivers with tickets. Just one moving violation may increase your cost by as much as thirty percent. Drivers who get flagrant violations like hit and run, DWI or reckless driving convictions may be required to submit a SR-22 or proof of financial responsibility with their state motor vehicle department in order to keep their license.
With age comes lower rates - More mature drivers tend to be more responsible, tend to cause fewer accidents and are safer drivers. Young drivers are known to be more careless when driving and because of this, their car insurance rates are much higher.
Men pay higher rates - Statistics have proven women are more cautious behind the wheel. However, this does not mean men are WORSE drivers than women. Men and women have accidents in similar numbers, but men have costlier accidents. Men also get cited for more serious violations such as reckless driving. Youthful male drivers are most likely to cause an accident and are penalized with high car insurance rates.
Small claims can cost you - If you file claims often, you can expect either higher rates or even cancellation. Insurance companies in Virginia provide cheaper rates to insureds who do not rely on their insurance for small claims. Car insurance is meant to be used in the event of the bigger claims that can't be paid out-of-pocket.
Better credit scores mean better rates - Your credit history is a important factor in determining what you pay for car insurance. If your credit rating is not that good, you could save money insuring your by improving your credit score. Consumers who have high credit scores tend to be less risk to insure than drivers who have lower credit scores.

Be sure to get all your discounts

Car insurance can cost a lot, buy you may qualify for discounts to cut the cost considerably. Certain discounts will be triggered automatically at the time of purchase, but less common discounts must be inquired about prior to receiving the credit.

Good Student Discount - This discount can save 20 to 25%. Earning this discount can benefit you well after school through age 25.
Resident Student - Children who are attending college and do not have access to a covered vehicle can receive lower rates.
55 and Retired - If you're over the age of 55, you may be able to get a discount up to 10%.
Government Employees - Employees or retirees of the government can earn a discount up to 10% with certain companies.
Passive Restraint Discount - Vehicles with factory air bags or automatic seat belts can qualify for discounts of 20% or more.
Drivers Ed for Students - Cut your cost by having your teen driver take driver's ed class if it's offered in school.

A little note about advertised discounts, most credits do not apply to the overall cost of the policy. Most only apply to individual premiums such as medical payments or collision. So even though they make it sound like you could get a free car insurance policy, you won't be that lucky. Any amount of discount will reduce the amount you have to pay.

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

Is there truth in advertising?

Companies like State Farm and Allstate continually stream television and radio advertisements. All the ads say the same thing about savings after switching your policy. How can each company make the same claim?

Different companies have a preferred profile for the right customer that makes them money. For instance, a preferred risk could be between the ages of 40 and 55, insures multiple vehicles, and has great credit. A customer who fits that profile is entitled to the best price and is almost guaranteed to save when they switch companies.

Potential customers who don't measure up to the requirements will be charged higher prices which usually ends up with business going elsewhere. Company advertisements say "customers that switch" but not "drivers who get quotes" save that kind of money. This is how companies can truthfully advertise the savings.

That is why you should get as many comparisons as possible. Because you never know which insurance companies will fit your personal profile best.

How do I know if I need professional advice?

When buying the best car insurance coverage for your personal vehicles, there really is not a best way to insure your cars. Everyone's situation is a little different and a cookie cutter policy won't apply. For example, these questions may help you determine whether or not you will benefit from professional help.

Do I need to file an SR-22 for a DUI in Virginia?
Why does it cost so much to insure a teen driver in Chatham?
Should I put collision coverage on all my vehicles?
Am I covered if I drive in a foreign country?
Should I drop comprehensive coverage on older vehicles?
Is my cargo covered for damage or theft?
What companies insure drivers after a DUI or DWI?
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 a licensed agent. To find an agent in your area, fill out this quick form or click here for a list of car insurance companies in your area.

Additional information is located on the website for the Virginia Bureau of Insurance located here. Consumers can file complaints about a company, read enforcement actions against agents and companies, learn about insurance regulations, and download brochures.

Shop smart and save

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 better chance you'll have of finding lower rates. You may even find the lowest priced car insurance comes from some of the lesser-known companies. Some small companies may cover specific market segments cheaper compared to the large companies like .

When you buy insurance online, it's a bad idea to buy poor coverage just to save money. There have been many cases where drivers have reduced liability coverage limits only to discover later that the few dollars in savings costed them thousands. Your goal should be to buy enough coverage at a price you can afford, not the least amount of coverage.