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

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Believe me, many consumers are feeling buyer's remorse and feel like there's no way out.

Companies like GEICO and Progressive all claim big savings with TV and radio ads and consumers find it hard to sift through the bull and take the time to shop coverage around.

It's important to take a look at other company's rates every six months since insurance rates are constantly changing. Just because you found the best deal a year ago a different company probably has better rates today. Starting right now, block out anything you think you know about auto insurance because it's time to teach you the proper way to reduce your cost while increasing coverage.

Policy discounts you shouldn't miss

Companies don't list every available discount in a way that's easy to find, so here is a list some of the best known and the more hidden ways to save on auto insurance.

Theft Prevention System - Vehicles equipped with anti-theft or alarm systems help deter theft and qualify for as much as a 10% discount.
Clubs and Organizations - Affiliation with a civic or occupational organization could trigger savings on your policy.
No Accidents - Drivers with accident-free driving histories can earn big discounts compared to drivers who are more careless.
Senior Discount - If you qualify as a senior citizen, you may receive better auto insurance rates.
Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to take driver's ed class if offered at their school.

Keep in mind that many deductions do not apply to all coverage premiums. Some only reduce the cost of specific coverages such as comprehensive or collision. So when the math indicates all those discounts means the company will pay you, it just doesn't work that way.

Kannapolis Rates are Influenced by These Factors

Smart consumers have a good feel for the rating factors that play a part in calculating auto insurance rates. Having a good understanding of what influences your rates enables informed choices that can help you get big savings.

Shown below are some of the factors auto insurance companies consider when setting your rates.

How many coverages with the same company - Some auto insurance companies give discounts to people who have multiple policies with them such as combining an auto and homeowners policy. Discounts can be ten or even up to twenty percent in some cases. Even with this discount, you may still want to compare other company rates to ensure the best deal. Drivers may still find a better deal by splitting coverages up.
Do you have enough liability coverage? - Your policy's liability coverage provides coverage in the event that a jury decides you are liable for causing damage or personal injury in an accident. It provides legal defense coverage which can cost thousands of dollars. Liability is cheap as compared to coverage for physical damage, so drivers should carry high limits.
Do you work long hours in a high stress job? - Occupations like doctors, executives and dentists tend to have the highest average rates attributed to high stress and lots of time spent at work. Other occupations like actors, historians and retirees receive lower rates.
Males pay more for insurance - Statistics demonstrate women are more cautious behind the wheel. Now that doesn't mean men are worse drivers. They both have accidents at about the same rate, but men tend to have more serious accidents. Men also have more aggressive citations like reckless driving and DUI.
High numbers of claims are not good - Insurance companies in North Carolina give cheaper rates to drivers who are claim-free. If you file claims often, you can look forward to either policy cancellation or increased premiums. Insurance coverage is intended to be relied upon for the large, substantial claims.
Extra add-on coverages are wasting money - There are quite a few extra coverages you can purchase if you aren't careful. Insurance for vanishing deductibles, better glass coverage and term life insurance may be wasting your money. These coverages may sound good at first, but if they're wasting money eliminate the coverages to reduce your premium.

Save $429 a year? Really?

Companies like Allstate and Progressive consistently run television and radio advertisements. All the ads make the same claim that you can save if you change to their company. How can each company say the same thing?

All the different companies are able to cherry pick for the driver that earns them a profit. An example of a preferred risk might be profiled as between the ages of 30 and 50, has no driving citations, and has excellent credit. A propective insured who matches those parameters will get very good rates and is almost guaranteed to save when they switch companies.

Drivers who don't qualify for the requirements will be charged a higher premium which leads to business not being written. The ads say "people who switch" but not "drivers who get quotes" save that much. That's the way insurance companies can make those claims. That is why drivers should compare many company's rates. It's not possible to predict which auto insurance company will have the lowest rates.

Learn more about North Carolina auto insurance

Additional detailed information is available at the North Carolina Department of Insurance website. North Carolina drivers can read consumer alerts, find out which companies have the most complaints, read industry bulletins, and learn about insurance regulations.

Shop smart and save

While you're price shopping online, it's a bad idea to skimp on coverage in order to save money. Too many times, someone sacrificed liability limits or collision coverage only to find out they didn't purchase enough coverage. The aim is to find the BEST coverage at an affordable rate, not the least amount of coverage.

Affordable auto insurance can be sourced on the web and also from your neighborhood Kannapolis agents, and you should compare price quotes from both to have the best selection. Some companies may not provide you the ability to get quotes online and many times these smaller companies only sell through independent insurance agents.