How to Know You're Spending Too Much for Auto Insurance in East Grand Forks

Expensive auto insurance can overdraw your checking account and force you to prioritize other expenses. Shopping your coverage around is a smart way to cut your insurance bill.

Insurance companies such as GEICO and Progressive all claim big savings with TV and radio ads and it is challenging if not impossible to sift through the bull and find the best price available.

Good Decisions Result in Lower 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 influences your rates enables informed choices that will entitle you to better auto insurance rates.

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

Rates may be higher depending on your occupation - Careers like real estate brokers, architects and dentists tend to have the highest average rates due to high stress and long work hours. Other occupations like pilots, historians and the unemployed receive lower rates.
Men fork out a little more - Statistics have proven women are more cautious behind the wheel. However, don't assume that men are worse drivers. Men and women have accidents at a similar rate, but the men cause more damage and cost insurance companies more money. Men also statistically get cited for more serious violations like reckless driving and DUI.
Always keep insurance in force - Driving your car without having proper coverage can get your license suspended and auto insurance companies will penalize you for letting your coverage lapse. Not only will rates go up, failure to provide proof of insurance can result in a steep fine or even jail time.
Theft deterrents lower rates - Purchasing a vehicle with a theft deterrent system can help bring down rates. Anti-theft devices such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping your car from being stolen.
Extra add-on coverages are wasting money - There are a lot of add-on coverages that can waste your money if you aren't careful. Insurance for vanishing deductibles, accident forgiveness and term life insurance are examples of these. These coverages may sound good initially, but if they're wasting money eliminate the coverages to reduce your premium.

How much can you save with discounts?

Properly insuring your vehicles can get expensive, but you can get discounts that can drop the cost substantially. Larger premium reductions will be automatically applied when you get a quote, but some may not be applied and must be asked for before you will receive the discount.

Government Employees - Employees or retirees of the government can earn a discount up to 10% with a few auto insurance companies.
Senior Discount - If you're over the age of 55, you can possibly qualify for better auto insurance rates.
Use Seat Belts - Buckling up and requiring all passengers to buckle their seat belts could cut 10% or more on the medical payments or PIP coverage costs.
No Accidents - Drivers who don't have accidents pay less when compared to accident-prone drivers.
Pay Upfront and Save - If you pay your bill all at once instead of making monthly payments you may reduce your total bill.

It's important to note that most of the big mark downs will not be given to the overall cost of the policy. Some only reduce specific coverage prices like comp or med pay. So when the math indicates you would end up receiving a 100% discount, you're out of luck. But any discount will reduce the amount you have to pay.

To choose insurance companies with the best auto insurance discounts in East Grand Forks, follow this link.

Save 15 percent in 15 minutes? Is it for real?

Auto insurance providers like Progressive, Allstate and GEICO regularly use television and radio advertisements. They all say the same thing that you can save if you move to their company. How can each company say the same thing? It's all in the numbers.

Different companies have a preferred profile for the driver that makes them money. A good example of a driver they prefer might be profiled as a mature driver, insures multiple vehicles, and has great credit. A propective insured who fits that profile will get very good rates and is almost guaranteed to save when they switch companies.

Drivers who don't meet the requirements will be quoted higher premiums which usually ends up with business not being written. The ads say "customers who switch" but not "drivers who get quotes" save that much. This is how insurance companies can advertise the savings.

This emphasizes why you should get a wide range of price quotes. It's not possible to predict which insurance companies will give you the biggest savings.

How much car insurance do I need?

When buying coverage for your personal vehicles, there really is not a one size fits all plan. Your needs are not the same as everyone else's so your insurance needs to address that. For example, these questions may help you determine if your insurance needs would benefit from professional advice.

Why am I required to get a high-risk car insurance policy?
Should I put collision coverage on all my vehicles?
Why am I be forced to buy a membership to get insurance from some companies?
What companies insure drivers after a DUI or DWI?
What can I do if my company won't pay a claim?
Does my policy cover my teen driver if they drive my company car?
Is rental equipment covered for theft or damage?
Can I get a multi-policy discount for packaging my home and auto coverage?

If you don't know the answers to these questions, then you may want to think about talking to a licensed insurance agent. If you don't have a local agent, complete this form or you can also visit this page to select a carrier

More information can be read on the website for the Minnesota Department of Commerce found here. Minnesota drivers can read industry bulletins, learn about insurance regulations, find a variety of consumer forms, and view a list of available companies.

Shop smart and save

As you prepare to switch companies, it's a bad idea to buy poor coverage just to save money. There are too many instances where drivers have reduced collision coverage and discovered at claim time that the small savings ended up costing them much more. Your strategy should be to find the BEST coverage at the best price while still protecting your assets.

Lower-priced auto insurance is definitely available on the web and also from your neighborhood East Grand Forks agents, and you need to price shop both to have the best chance of lowering rates. There are still a few companies who may not provide online price quotes and these small insurance companies work with independent agents.