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

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

Consumers have many to pick from, and even though it's nice to be able to choose, it can be more difficult to compare rates.

Buying car insurance in Newport is quite easy. If you currently have a car insurance policy, you stand a good chance to be able to cut costs considerably using these methods. Nevertheless, Tennessee drivers do need to know the way companies sell online because it can help you find the best coverage.

You have some control over your rates

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 determines base rates enables informed choices that will entitle you to much lower annual insurance costs.

Shown below are a partial list of the pieces auto insurance companies consider when setting prices.

Do you work long hours in a high stress job? - Careers like judges, architects and financial analysts tend to have higher average rates due to job stress and long work days. Conversely, professions such as actors, engineers and retirees receive lower rates.
Protect yourself with liability coverage - Your policy's liability coverage provides coverage when a court rules you are at fault for causing damage or personal injury in an accident. It will provide legal defense which can be incredibly expensive. Liability insurance is quite affordable as compared to coverage for physical damage, so buy as much as you can afford.
Do you know your deductibles? - Your deductibles define the amount you are willing to pay out-of-pocket if you file a covered claim. Physical damage insurance, otherwise known as comp (or other than collision) and collision, covers damage that occurs to your car. Some instances where coverage would apply could be running into the backend of another car, damage from fire, and burglary. The more you are required to pay out-of-pocket, the less your auto insurance will be.
Where do you drive? - The higher the mileage driven in a year the higher your rate. Most insurance companies apply a rate determined by how the vehicle is used. Vehicles used primarily for pleasure use receive lower rates than those used for commuting. Double check that your auto insurance declarations sheet shows the correct usage for each vehicle, because improper ratings can cost you money.
Policy add-ons can waste money - There are quite a few extra coverages that can waste your money on your auto insurance policy. Coverages for roadside assistance, accident forgiveness and term life insurance are examples of these. They may seem good initially, but if they're wasting money eliminate them to save money.
Lower rates with optional equipment - Choosing a vehicle with a theft deterrent system can get you a discount on your auto insurance. Theft prevention devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can thwart your car from being stolen.

Take advantage of discounts

Companies offering auto insurance do not advertise every discount very clearly, so we researched both well-publicized and also the lesser-known auto insurance savings.

No Accidents - Drivers with accident-free driving histories pay much less when compared to accident-prone drivers.
Organization Discounts - Participating in a qualifying organization could qualify you for a break when shopping for auto insurance.
Multiple Cars - Insuring all your vehicles with the same company can get a discount on all vehicles.
Discount for Life Insurance - Larger companies have a discount if you purchase life insurance.
Safety Course Discount - Successfully completing 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 successfully complete driver's ed class if offered at their school.
Discount for Good Grades - This discount can earn a discount of 20% or more. Earning this discount can benefit you up until you turn 25.

It's important to understand that most of the big mark downs will not be given to all coverage premiums. Most only apply to specific coverage prices like comp or med pay. So when it seems like all the discounts add up to a free policy, it doesn't quite work that way.

To choose insurance companies with discount auto insurance rates in Tennessee, follow this link.

Are auto insurance companies telling the truth?

Auto insurance providers like Progressive, Allstate and GEICO consistently run ads on TV and radio. They all say the same thing of big savings if you change to their company. How does each company make almost identical claims? It's all in the numbers.

Insurance companies are able to cherry pick for the driver that makes them money. For instance, a driver they prefer could possibly be between the ages of 30 and 50, has no driving citations, and drives less than 7,500 miles a year. A driver who fits that profile is entitled to the best price and most likely will save when switching.

Drivers who don't qualify for these standards will be quoted a higher premium which usually ends up with the driver buying from a lower-cost company. The ads state "customers who switch" not "people who quote" save that much. That's the way insurance companies can confidently advertise the way they do. This emphasizes why you should get as many quotes as possible. It is impossible to predict which auto insurance company will provide you with the cheapest rates.

Learn more about Tennessee auto insurance

More tips and info about auto insurance is located at the Tennessee Department of Commerce and Insurance website. Tennessee consumers can read industry bulletins, find out which companies have the most complaints, report car insurance fraud, and file complaints about an insurance agent or broker.

Other informative sites include this online resource for auto insurance quotes in Tennessee and this list of insurance agents in Newport.

The best insurance company isn't always the cheapest

Low-cost auto insurance can be sourced online and also from your neighborhood Newport agents, and you should compare price quotes from both to have the best selection. Some auto insurance companies may not provide online price quotes and these small, regional companies work with independent agents.

When shopping online for auto insurance, make sure you don't buy poor coverage just to save money. There are too many instances where someone sacrificed liability coverage limits only to discover later that a couple dollars of savings turned into a financial nightmare. Your strategy should be to buy a smart amount of coverage at the best price while still protecting your assets.