How to Know You're Spending Too Much for Auto Insurance in Lemmon

Paying for high-priced auto insurance can drain your bank account, especially in this economy. Comparison shopping is free and is an excellent way to reduce premiums and put more money in your pocket. Insurance companies such as State Farm, Allstate, GEICO and Progressive promote their brand names with advertising and it can be hard to sift through the bull and do the work needed to find the best deal.

These discounts can lower your rates

Properly insuring your vehicles can get expensive, but companies offer discounts that you may not even be aware of. Larger premium reductions will be automatically applied at the time of purchase, but lesser-known reductions have to be specially asked for prior to receiving the credit. If you aren't receiving every discount you deserve, you are throwing money away.

  • Government Employees - Active or retired federal employment could cut as much as 10% off with a few auto insurance companies.
  • Discount for New Cars - Buying coverage on a new vehicle is cheaper because new vehicles have to meet stringent safety requirements.
  • Air Bag Discount - Cars that have air bags or automatic seat belts can qualify for discounts of 20% or more.
  • Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to successfully complete driver's ed class in school.
  • Military Discounts - Having a family member in the military could mean lower rates.
  • Defensive Driver - Successfully completing a course in driver safety could cut 5% off your bill if you qualify.

A little note about advertised discounts, most discount credits are not given to the overall cost of the policy. The majority will only reduce the cost of specific coverages such as comp or med pay. So even though it sounds like all the discounts add up to a free policy, you won't be that lucky. Any amount of discount will reduce the cost of coverage.

Different people need different coverages

When it comes to buying adequate coverage for your personal vehicles, there really is not a one size fits all plan. Each situation is unique so this has to be addressed. For instance, these questions may help you determine whether you would benefit from professional advice.

  • Why am I required to get a high-risk car insurance policy?
  • Should I file a claim if it's only slightly more than my deductible?
  • Should I drop comprehensive coverage on older vehicles?
  • Is rental equipment covered for theft or damage?
  • Am I covered when delivering products for my home-based business?
  • Do I have coverage for damage caused while driving under the influence?
  • Who is covered when they drive my vehicle?
  • Is my cargo covered for damage or theft?

If it's difficult to answer those questions, then you may want to think about talking to a licensed agent. To find an agent in your area, fill out this quick form or you can also visit this page to select a carrier It's fast, doesn't cost anything and can provide invaluable advice.

Are you falling for claims of savings?

South Dakota consumers get pounded daily by advertisements for car insurance savings from companies such as Progressive, Allstate and GEICO. They all make the same claim about savings if you switch your policy.

How can each company make almost identical claims?

Insurance companies have a preferred profile for the right customer that earns them a profit. For example, a driver they prefer could possibly be a mature driver, insures multiple vehicles, and chooses high deductibles. A driver who matches those parameters gets the lowest rates and as a result will probably save when they switch companies.

Potential customers who are not a match for the requirements will be quoted higher prices which leads to the driver buying from a lower-cost company. Company advertisements say "people who switch" not "everybody who quotes" save that kind of money. This is how companies can truthfully state the savings.

This emphasizes why you should get as many comparisons as possible. It is impossible to predict which insurance companies will give you the biggest savings.

More sites with auto insurance information

Additional information can be found on the website for the South Dakota Division of Insurance through this link. South Dakota consumers can read industry bulletins, read enforcement actions against agents and companies, find out industry alerts, and view a list of available companies.

Lemmon auto insurance comparison

And the best car insurance company is...

When buying insurance coverage, it's not a good idea to buy lower coverage limits just to save a few bucks. There are too many instances where drivers have reduced uninsured motorist or liability limits only to regret that their decision to reduce coverage ended up costing them more. Your strategy should be to buy the best coverage you can find at an affordable rate while still protecting your assets.

In this article, we presented some good ideas how to reduce auto insurance prices online. The key thing to remember is the more price quotes you have, the better your comparison will be. You may even find the best price on auto insurance is with a company that doesn't do a lot of advertising. Regional companies may cover specific market segments cheaper than the large multi-state companies such as .