How to Know You're Spending Too Much for Auto Insurance in Clear Lake

Having to pay for overpriced auto insurance can take a big chunk out of your checking account and make it hard to pay other bills. Comparing price quotes is a great way to help make ends meet.

Numerous battle for your insurance dollar, and because of this it can be hard to compare and uncover the absolute lowest rate

It's important to take a look at other company's rates yearly since insurance rates are constantly changing. Even if you got the best deal six months ago you can probably find a better price now. Starting right now, ignore everything you know about auto insurance because it's time to teach you the only way to reduce your cost while increasing coverage.

If you have car insurance now, you will be able to save some money using this strategy. Finding the best rates in Clear Lake is quite easy. Nevertheless, Iowa vehicle owners do need to know how big insurance companies price online insurance and take advantage of how the system works.

Clear Lake Rates are Influenced by These Factors

Consumers need to have an understanding of the factors that go into determining auto insurance rates. Understanding what determines base rates enables informed choices that may reward you with lower auto insurance prices.

Being married is a good thing - Being married can actually save you money on auto insurance. It means you're more mature and responsible and it's proven that married drivers get in fewer accidents.
Where you live is a factor - Residing in a rural area can be a good thing when buying auto insurance. Less people living in that area translates into fewer accidents and also fewer theft and vandalism claims. City drivers tend to have much more traffic to deal with and a longer drive to work. Longer commute distances can result in more accidents.
Do you qualify for a multi-policy discount? - Most insurance companies will give a discount to people who consolidate policies with them. It's known as a multi-policy discount. Discounts can be 10 percent or more. If you currently are using one company, you still need to comparison shop to ensure the best deal.
Safer cars cost less to insure - Cars with high safety ratings get lower rates. These vehicles reduce injuries and better occupant protection translates into savings for insurance companies and lower rates for you.
Your job and insurance rates - Did you know your auto insurance rates can be affected by your occupation? Jobs such as doctors, social workers and accountants tend to have higher rates than average because of job stress and lengthy work days. On the flip side, occupations such as pilots, athletes and homemakers receive lower rates.

Are you getting all your discounts?

Insuring your vehicles can cost a lot, but you can get discounts that many people don't even know exist. A few discounts will automatically apply when you purchase, but lesser-known reductions have to be requested specifically before being credited.

Accident Waiver - A few companies will forgive one accident before hitting you with a surcharge as long as you don't have any claims prior to the accident.
Bundle and Save - If you insure your home and vehicles with one insurance company you could get a discount of up to 20% off your total premium.
Anti-theft Discount - Vehicles with anti-theft systems can help prevent theft and will save you 10% or more.
Service Members Pay Less - Being deployed with a military unit could mean lower rates.
Government Employees - Employees or retirees of the government can save as much as 8% with select insurance companies.
Senior Discount - If you're over the age of 55, you may qualify for better auto insurance rates.
Organization Discounts - Affiliation with certain professional organizations may earn a discount on auto insurance.
Student Driver Training - Cut your cost by having your teen driver complete a driver education course in school.

Consumers should know that some of the credits will not apply to your bottom line cost. Most only apply to individual premiums such as liability, collision or medical payments. So despite the fact that it appears all the discounts add up to a free policy, companies don't profit that way. Any qualifying discounts will cut the cost of coverage.

To choose companies offering auto insurance discounts in Clear Lake, click here.

How can State Farm, GEICO and Progressive save drivers who switch?

Auto insurance companies such as State Farm, GEICO and Progressive constantly bombard you with ads on television and other media. They all seem to have a common claim of big savings if you switch to their company. How do they all say the same thing?

All companies have a preferred profile for the driver that makes them money. An example of a desirable insured might be profiled as between 30 and 50, has no prior claims, and has a high credit rating. A propective insured that hits that "sweet spot" is entitled to the best price and as a result will probably cut their rates substantially.

Consumers who are not a match for the "perfect" profile will have to pay higher prices and this can result in business not being written. Company advertisements say "customers that switch" not "everybody who quotes" save that much. This is how insurance companies can confidently state the savings.

Because of the profiling, you should get a wide range of price quotes. It's not possible to predict which insurance companies will have the lowest rates.

Tailor your coverage to you

When buying proper insurance coverage for your personal vehicles, there is no single plan that fits everyone. Coverage needs to be tailored to your specific needs and your policy should reflect that. For instance, these questions can help discover whether you might need professional guidance.

I have good health insurance, so how much medical payments coverage do I need?
What is the difference between comprehensive and collision coverage?
Does my personal auto insurance policy cover using my vehicle for business use?
Am I covered when delivering products for my home-based business?
Why am I required to get a high-risk car insurance policy?
Am I covered by my employer's commercial auto policy when driving my personal car for business?
Am I getting all the discounts available?

If you can't answer these questions, you might consider talking to a licensed insurance agent. To find an agent in your area, simply complete this short form or you can go here for a list of companies in your area.

Learn more about auto insurance in Iowa

Additional auto insurance information is available on the website for the Iowa Insurance Division located here. Iowa drivers can get help finding coverage, view agent and company licensing information, read consumer alerts, and find disaster information.

The best insurance company isn't always the cheapest

Cost effective auto insurance can be found on the web and also from your neighborhood Clear Lake agents, so compare prices from both in order to have the best price selection to choose from. Some insurance companies may not provide online price quotes and most of the time these smaller companies sell through independent agents.

As you restructure your insurance plan, you should never buy poor coverage just to save money. In many cases, consumers will sacrifice comprehensive coverage or liability limits to discover at claim time that they should have had better coverage. Your aim should be to buy enough coverage at a price you can afford.