How to Know You're Throwing Money Away for Auto Insurance in Elmira Heights

Sick and tired of paying out the nose each month for car insurance? Your situation is no different than many other New York drivers. Drivers have so many to pick from, and even though it's nice to be able to choose, too many choices makes it more difficult to compare rates.

It's important to compare prices before your policy renews because prices are constantly changing. If you had the best deal two years ago you can probably find a better price now. Starting now, forget all the misinformation about auto insurance because you're going to get a crash course in the only way to find lower rates on auto insurance.

How to Lower your Auto Insurance Rates

Consumers need to have an understanding of the rating factors that come into play when calculating the price you pay for auto insurance. Knowing what impacts premium levels empowers consumers to make smart changes that can help you get much lower annual insurance costs.

  • Do you know you're credit rating? - Your credit rating is a important factor in your rate calculation. People with excellent credit tend to be more responsible than drivers with poor credit. If your credit history can use some improvement, you could save money insuring your by spending a little time repairing your credit.
  • Don't let your coverage lapse - Not having insurance is a misdemeanor and your next policy will cost more because you let your coverage have a gap. Not only will rates go up, getting caught without coverage may earn you a hefty fine and possibly a revoked license.You may have to provide proof of insurance in the form of an SR-22 filing with the New York department of motor vehicles.
  • Keep rates low by being claim-free - Insurance companies in New York give lower rates to insureds who do not file claims often. If you file claims often, you can look forward to higher rates. Your insurance policy is designed for major claims that would cause financial hardship.
  • Proper usage rating affects rates - The more you drive every year the higher your rates will be. Almost all companies apply a rate based upon how you use the vehicle. Autos used primarily for pleasure use can get a lower rate compared to those used for work or business. Double check that your auto insurance policy shows the correct driver usage, because it can save money.
  • Liability coverage protects you - The liability section of your policy will protect you in the event that a court rules you are at fault for personal injury or accident damage. It provides legal defense coverage which can be incredibly expensive. Liability is cheap compared to insuring for physical damage coverage, so drivers should carry high limits.
  • Bump up deductibles to save - Coverage for physical damage, termed comprehensive and collision coverage on your policy, protects your car from damage. A few examples of covered claims could be a windshield shattered by a rock, damage from fire, or theft. Physical damage deductibles are the amount of money you are required to spend out-of-pocket if you file a covered claim. The more money you have to pay, the less your company will charge you for insurance.
  • Optional equipment can affect rates - Driving a car with an alarm system can get you a discount on your auto insurance. Anti-theft devices like LoJack tracking devices, vehicle tamper alarm systems or GM's OnStar system all hinder your vehicle from being stolen.
  • Big city or small town - Being located in small towns and rural areas has it's advantages when insuring your vehicles. Drivers in populated areas regularly have congested traffic and longer commutes to work. Less people living in that area means a lower chance of having an accident and also fewer theft and vandalism claims.

New York auto insurance

Be sure to get all your discounts

Companies do not advertise every available discount very clearly, so here is a list both well-publicized as well as the least known ways to save on auto insurance. If you're not getting every credit available, you are paying more than you should be.

  • Passive Restraint Discount - Vehicles with factory air bags may earn rate discounts of 20% or more.
  • Seat Belts Save more than Lives - Buckling up and requiring all passengers to use their safety belts can save up to 15% on the medical payments or PIP coverage costs.
  • Employee of Federal Government - Employees or retirees of the government could cut as much as 10% off with certain companies.
  • Auto/Life Discount - Companies who offer life insurance give a discount if you purchase life insurance.
  • Organization Discounts - Participating in a qualifying organization could trigger savings on your policy.
  • More Vehicles More Savings - Buying insurance for multiple cars or trucks with the same company may reduce the rate for each vehicle.

As a disclaimer on discounts, most discount credits are not given to the entire cost. The majority will only reduce individual premiums such as medical payments or collision. So when it seems like all the discounts add up to a free policy, auto insurance companies aren't that generous.

To choose providers with the best auto insurance discounts in New York, click this link.

Is there truth in advertising?

New York consumers can't ignore all the ads for the lowest price auto insurance from the likes of State Farm and Allstate. All the ads make the same claim about savings if you move your coverage to them.

How does each company make almost identical claims?

Insurance companies can use profiling for the type of customer that makes them money. An example of a preferred risk could possibly be between the ages of 40 and 55, is a homeowner, and chooses high deductibles. A customer getting a price quote who matches those parameters gets the lowest rates and is almost guaranteed to save when switching.

Consumers who don't measure up to these standards will be charged higher prices which leads to the driver buying from a lower-cost company. Company advertisements say "customers that switch" but not "drivers who get quotes" save that much money. That's why companies can truthfully state the savings. That is why you should get a wide range of price quotes. It's impossible to know the company that will give you the biggest savings.

Learn more today

Even more information is available at the New York Department of Financial Services website. New York consumers can find out industry alerts, find a variety of consumer forms, download brochures, and file complaints about an insurance agent or broker.

Other informative sites include NAIC.org's Understanding your Policy and this directory of Elmira Heights insurance agents.

And the best car insurance company is...

You just read some good ideas how to save on auto insurance. The key concept to understand is the more you quote, the higher your chance of finding lower rates. Consumers may even find the lowest priced auto insurance comes from some of the lesser-known companies. Some small companies may have significantly lower rates on certain market segments compared to the large companies like .

When buying insurance coverage, make sure you don't buy poor coverage just to save money. There have been many cases where an accident victim reduced comprehensive coverage or liability limits to discover at claim time that their decision to reduce coverage ended up costing them more. Your goal should be to buy the best coverage you can find at a price you can afford, not the least amount of coverage.