How to Know You're Paying Too Much for Auto Insurance in Columbia

Nobody looks forward to paying for auto insurance, especially knowing the price is too high. Insurance companies such as GEICO and Progressive all promote huge savings with TV and radio ads and it can be hard to sift through the bull and effectively compare rates to find the best deal.

It's important to compare prices periodically since insurance rates are constantly changing. If you had the best deal two years ago you will most likely find a better rate today. So forget anything you know (or think you know) about auto insurance because it's time to teach you the proper way to find lower rates on auto insurance.

Save big with these discounts

Car insurance is not cheap, but discounts can save money and there are some available that can drop the cost substantially. Some discounts apply automatically when you purchase, but some must be specially asked for before being credited. If you aren't receiving every discount you qualify for, you are throwing money away.

Braking Control Discount - Cars that have steering control and anti-lock brakes prevent accidents and earn discounts up to 10%.
Passive Restraints - Vehicles with factory air bags or motorized seat belts can qualify for discounts of 20% or more.
Seat Belts Save more than Lives - Buckling up and requiring all passengers to buckle their seat belts can save up to 15% off your PIP or medical payments premium.
Claim Free - Good drivers with no accidents can earn big discounts compared to drivers who are more careless.
Anti-theft Discount - Vehicles equipped with anti-theft or alarm systems help deter theft and earn discounts up to 10%.
Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to take driver's ed class in high school.

A little note about advertised discounts, most discount credits are not given to the entire policy premium. Some only reduce specific coverage prices like comprehensive or collision. So even though it sounds like it's possible to get free car insurance, you won't be that lucky. Any amount of discount will reduce your overall premium however.

But I don't know anything about car insurance

When it comes to buying proper insurance coverage for your vehicles, there really is not a single plan that fits everyone. Every situation is different so this has to be addressed. These are some specific questions may help highlight if your situation may require specific advice.

Does my insurance cover a custom paint job?
Should I drop comprehensive coverage on older vehicles?
Why am I be forced to buy a membership to get insurance from some companies?
Will I be non-renewed for getting a DUI or other conviction?
Am I covered when renting a car or should I buy coverage from the car rental agency?
Is my cargo covered for damage or theft?

If it's difficult to answer those questions, then you may want to think about talking to an insurance agent. If you don't have a local agent, fill out this quick form or click here for a list of auto insurance companies in your area. It's fast, doesn't cost anything and you can get the answers you need.

Auto insurance ads bend the truth

Tennessee drivers get pounded daily by advertisements for cheaper car insurance from the likes of Allstate and Progressive. All the ads make the same claim about savings if you move your coverage to them.

How can each company say the same thing? It's all in the numbers.

All companies have a certain "appetite" for the type of customer that earns them a profit. An example of a preferred risk might be profiled as over the age of 50, a clean driving record, and chooses high deductibles. A propective insured who matches those parameters will get very good rates and most likely will save when they switch companies.

Consumers who fall outside the requirements will be charged higher prices which leads to business not being written. The ads say "customers who switch" not "people who quote" save that much money. That is how companies can truthfully state the savings.

That is why you should get as many comparisons as possible. It's not possible to predict which company will give you the biggest savings.

Additional information is available on the website for the Tennessee Department of Commerce and Insurance found here. Tennessee drivers can find out industry alerts, find a variety of consumer forms, read industry bulletins, and report car insurance fraud.

Best coverage at the best price

When buying insurance coverage, it's a bad idea to buy lower coverage limits just to save a few bucks. Too many times, someone dropped liability limits or collision coverage only to find out that their decision to reduce coverage ended up costing them more. The aim is to find the BEST coverage at the best price, not the least amount of coverage.

Throughout this article, we presented some good ideas how to reduce auto insurance prices online. The key concept to understand is the more quotes you get, the better your comparison will be. You may even find the biggest savings come from some of the smallest insurance companies. Regional companies may cover specific market segments cheaper than their larger competitors like .