How to Know You're Wasting Money for Auto Insurance in Federal Way

Did you fall for a flashy sales pitch and buy an underperforming, overpriced auto insurance policy? Believe me, you're not the only one.

Drivers have multiple to buy insurance from, and even though it's nice to be able to choose, it can be more challenging to compare rates.

It's important to take a look at other company's rates every six months because insurance rates are constantly changing. Just because you found the best price two years ago you can probably find a better price now. Ignore everything you know about auto insurance because we're going to demonstrate the quickest way to eliminate unnecessary coverages and save money.

Buying car insurance in Federal Way is easy if you know what you're doing. Basically, every driver who is required by state law to have auto insurance stands a good chance to be able to reduce their rates. But Washington drivers do need to know how the larger insurance companies sell online and apply this information to your search.

Federal Way Rates are Influenced by These Factors

Consumers need to have an understanding of some of the elements that play a part in calculating the price you pay for auto insurance. Knowing what controls the rates you pay enables informed choices that can help you get big savings.

Traffic violations increase rates - Your driving record has a lot to do with how much you pay for insurance. Even a single moving violation can boost insurance rates by as much as thirty percent. Careful drivers get better rates than their less careful counterparts. Drivers who get dangerous violations like reckless driving, hit and run or driving under the influence may be required to file a SR-22 with their state DMV in order to prevent a license revocation.
Don't sacrifice liability coverage - Your policy's liability coverage provides coverage in the event that a court rules you are at fault for causing damage or personal injury in an accident. It will provide for a legal defense which can cost thousands of dollars. Liability is cheap as compared to coverage for physical damage, so buy as much as you can afford.
Do you know your deductibles? - Coverage for physical damage, otherwise known as comp (or other than collision) and collision, protects your car from damage. Some instances where coverage would apply could be collision with another vehicle, vandalism, and windstorm damage. Your deductibles are the amount of money you are willing to pay out-of-pocket if you file a covered claim. The higher the amount you are required to pay out-of-pocket, the less your auto insurance will be.
Males pay more for insurance - Statistics demonstrate that women are safer drivers than men. Now that doesn't mean men are worse drivers. They both tend to get into accidents in similar percentages, but men tend to have more serious accidents. Men also get cited for more serious violations such as DWI and reckless driving.
Add-on coverages can add up - There are quite a few extra coverages you can purchase on your auto insurance policy. Coverages for roadside assistance, better glass coverage and term life insurance are examples of these. They may seem like a good idea initially, but if they're wasting money eliminate them to save money.
With age comes lower rates - Teen drivers in Washington have a tendency to be less responsible when behind the wheel so they pay higher auto insurance rates. Older insureds tend to be more responsible, file fewer claims and receive fewer citations.

Take advantage of discounts

Companies don't always list every available discount very clearly, so we took the time to find both well-publicized and also the lesser-known auto insurance savings.

Discount for Good Grades - This discount can be rewarded with saving of up to 25%. This discount can apply up until you turn 25.
Organization Discounts - Participating in a qualifying organization could qualify you for a break on your policy.
Multiple Cars - Insuring all your vehicles with the same company can get a discount on all vehicles.
Save over 55 - If you're over the age of 55, you may receive better auto insurance rates.
Safety Course Discount - Taking part in a course in driver safety could possibly earn you a 5% discount if your company offers it.
Drivers Education - Cut your cost by having your teen driver take driver's ed class if offered at their school.
Passive Restraints - Vehicles with factory air bags and/or automatic seat belt systems may earn rate discounts of more than 20%.
Federal Government Employee - Employees or retirees of the government may qualify you for a discount with certain companies.
Discount for New Cars - Adding a new car to your policy can cost up to 25% less due to better safety requirements for new cars.
Resident Student - Children who attend school more than 100 miles from home and don't have a car may qualify for this discount.

Drivers should understand that most of the big mark downs will not be given to all coverage premiums. Most cut specific coverage prices like medical payments or collision. Even though it may seem like having all the discounts means you get insurance for free, companies wouldn't make money that way.

To choose providers with discount auto insurance rates in Washington, follow this link.

Are auto insurance companies telling the truth?

Companies like State Farm and Allstate consistently run ads on TV and radio. All the ads say the same thing that you'll save big if you change to their company. How does each company make almost identical claims? It's all in the numbers.

All the different companies are able to cherry pick for the driver that makes them money. For example, a preferred risk could possibly be between the ages of 40 and 55, has no driving citations, and chooses high deductibles. A driver who fits that profile gets the lowest rates and most likely will save when switching.

Potential customers who don't qualify for these standards will be charged higher prices which usually ends up with the driver buying from a lower-cost company. The ads say "customers who switch" not "people who quote" save that much. That's the way companies can state the savings. That is why you should compare many company's rates. It is impossible to predict which auto insurance company will give you the biggest savings.

Learn more about Washington auto insurance

More detailed Washington auto insurance information can be found at the Washington State Office of the Insurance Commissioner website. Washington consumers can file complaints about a company, find out which companies have the most complaints, report car insurance fraud, and learn about insurance regulations.

The best insurance company isn't always the cheapest

In this article, we presented many ways to save on auto insurance. It's most important to understand that the more you quote, the better your chances of lowering your rates. Consumers may even find the lowest priced auto insurance comes from some of the smallest insurance companies. Some small companies may only write in your state and offer lower rates than their larger competitors like .

Budget-conscious auto insurance can be sourced online and also from your neighborhood Federal Way agents, so you should be comparing quotes from both so you have a total pricing picture. Some insurance companies may not provide online price quotes and many times these regional insurance providers only sell through independent insurance agents.

When buying insurance coverage, it's very important that you do not buy poor coverage just to save money. There have been many cases where someone sacrificed physical damage coverage only to regret at claim time that their decision to reduce coverage ended up costing them more. Your goal should be to purchase plenty of coverage at the best price, not the least amount of coverage.