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

Nobody likes having to buy auto insurance, especially knowing they are paying too much.

There are many to pick from, and although it's a good thing to have multiple companies, it makes it harder to compare rates.

It's important to check auto insurance prices periodically since insurance rates are constantly changing. If you had the lowest price a couple years back a different company probably has better rates today. Don't believe everything you read about auto insurance on the internet, so we're going to give you some great ways to find cheap auto insurance.

Shopping for the lowest cost auto insurance coverage in Eden Prairie is easy if you know what you're doing. Just about everyone who is required by state law to have auto insurance stands a good chance to be able to lower their premiums. But Minnesota vehicle owners do need to know how the larger insurance companies determine prices because it can help you find the best coverage.

Are you getting all your discounts?

Car insurance is not cheap, but there are discounts available to help offset the cost. Certain discounts will be triggered automatically at the time of purchase, but a few must be asked about prior to receiving the credit.

  • Anti-lock Brake Discount - Cars that have steering control and anti-lock brakes prevent accidents and therefore earn up to a 10% discount.
  • Passive Restraints - Vehicles with factory air bags or motorized seat belts may earn rate discounts of more than 20%.
  • Pay Upfront and Save - If you pay your bill all at once instead of monthly or quarterly installments you can actually save on your bill.
  • New Vehicle Savings - Adding a new car to your policy is cheaper due to better safety requirements for new cars.
  • Military Rewards - Having a deployed family member can result in better rates.
  • Accident Free - Good drivers with no accidents pay much less compared to drivers who are more careless.
  • Federal Employees - Active or retired federal employment may qualify you for a discount with certain companies.
  • Discount for Life Insurance - Select insurance companies reward you with a discount if you purchase auto and life insurance together.
  • Use Seat Belts - Buckling up and requiring all passengers to buckle their seat belts can save up to 15% off your PIP or medical payments premium.
  • Drivers Education - Make teen driver coverage more affordable by requiring them to take driver's ed class in high school.

Drivers should understand that most of the big mark downs will not be given to the entire policy premium. Most only cut specific coverage prices like comprehensive or collision. So when the math indicates having all the discounts means you get insurance for free, companies wouldn't make money that way. But all discounts will bring down the cost of coverage.

Eden Prairie auto insurance quote

What determines how much you pay?

Smart consumers have a good feel for some of the elements that come into play when calculating auto insurance rates. Knowing what controls the rates you pay allows you to make educated decisions that can help you get big savings.

  • Better credit means lower rates - Your credit rating is a big factor in determining your rates. Drivers with high credit scores tend to file fewer claims and have better driving records as compared to drivers with lower ratings. If your credit can use some improvement, you could potentially save money when insuring your by spending a little time repairing your credit.
  • Your car's features help determine rates - Owning a car with a theft deterrent system can get you a discount on your auto insurance. Anti-theft devices such as GM's OnStar, tamper alarm systems and vehicle immobilizers can help prevent your car from being stolen.
  • Safe vehicles cost less to insure - Vehicles with good safety scores are cheaper to insure. Safer cars result in less severe injuries and better occupant protection means less money paid by your insurance company and thus lower rates.
  • Rates may be lower depending on your job - Occupations like judges, architects and financial analysts tend to pay higher average rates due to stressful work requirements and lots of time spent at work. Conversely, occupations such as scientists, engineers and the unemployed have the lowest average rates.

Tailor your coverage to you

When it comes to buying the best auto insurance coverage for your vehicles, there isn't really a one size fits all plan. Every situation is different so your insurance needs to address that. For instance, these questions may help highlight whether you will benefit from professional help.

  • Does my insurance cover a custom paint job?
  • Should I drop comprehensive coverage on older vehicles?
  • Are my tools covered if they get stolen from my vehicle?
  • Who is covered when they drive my vehicle?
  • Do I have coverage when using my vehicle for my home business?
  • What companies insure drivers after a DUI or DWI?

If you don't know the answers to these questions, you may need to chat with an agent. If you want to speak to an agent in your area, take a second and complete this form or click here for a list of auto insurance companies in your area.

How can Allstate and Progressive save drivers who switch?

Companies like Allstate and Progressive regularly use ads on television and other media. All the ads say the same thing that you'll save big if you move to them. How does each company say the same thing? It's all in the numbers.

All the different companies have a certain "appetite" for the type of driver that earns them a profit. For instance, a preferred risk might be profiled as between the ages of 40 and 55, a clean driving record, and drives less than 10,000 miles a year. A propective insured who fits that profile will qualify for the lowest rates and as a result will probably save when switching.

Potential customers who are not a match for these standards will be charged higher prices which usually ends up with business not being written. The ad wording is "customers who switch" not "everybody who quotes" save money. That is how companies can advertise the way they do.

That is why drivers should compare many company's rates. It's not possible to predict which company will provide you with the cheapest rates.

Additional Minnesota consumer information

Much more information about auto insurance in Minnesota is located on the website for the Minnesota Department of Commerce found here. Minnesota drivers can find out industry alerts, view a list of available companies, find disaster information, and read industry bulletins.

Also read more on NAIC.org's Understanding your Policy and this directory of Eden Prairie insurance agents.

Minnesota auto insurance

Shop smart and save

As you go through the steps to switch your coverage, make sure you don't skimp on coverage in order to save money. Too many times, someone dropped collision coverage and learned later that the savings was not a smart move. The aim is to purchase a proper amount of coverage at the best price, not the least amount of coverage.

In this article, we covered many ways to reduce auto insurance prices online. The key concept to understand is the more quotes you get, the more likely it is that you will get a better rate. Consumers may even find the lowest priced auto insurance comes from some of the smallest insurance companies. Regional companies may only write in your state and offer lower rates than the large multi-state companies such as .