How to Know You're Wasting Money for Car Insurance in Oak Island

Did you fall for a flashy sales pitch and buy an underperforming, overpriced car insurance policy? Trust us when we tell you many consumers are feeling buyer's remorse and feel like there's no way out.

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

Good Decisions Result in Lower Rates

Consumers need to have an understanding of the rating factors that play a part in calculating the rates you pay for car insurance. Knowing what impacts premium levels enables informed choices that will entitle you to big savings.

Your stress level may be raising your rates - Careers like judges, executives and financial analysts tend to have higher average rates attributed to high stress levels and lots of time spent at work. Conversely, occupations like actors, engineers and retirees receive lower rates.
Choose a safe vehicle and save - Vehicles with good safety scores tend to have better insurance rates. The safest vehicles reduce injuries and any reduction in injury severity means lower claim amounts and thus lower rates.
Do you need those extra coverages? - There are quite a few extra coverages that can waste your money when buying car insurance. Coverages for vanishing deductibles, accident forgiveness and term life insurance may be wasting your money. These may sound like a good investment at first, but if they're wasting money eliminate them to save money.
With age comes lower rates - Youthful drivers in North Carolina have a tendency to be careless and easily distracted when behind the wheel so they pay higher car insurance rates. Older insureds are more cautious drivers, file fewer claims and are safer drivers.
Adjust deductibles and save - Physical damage 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, is used to repair damage to your car. Some instances where coverage would apply would be running into the backend of another car, damage from fire, or theft. The more you are required to pay out-of-pocket, the less your car insurance will be.
Lower rates with optional equipment - Choosing a vehicle that has an advanced theft prevention system can get you a discount on your car insurance. Theft prevention devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can thwart your vehicle from being stolen.
More miles equals more premium - The higher the mileage driven in a year the higher your rate. Most insurance companies charge to insure your cars based upon how you use the vehicle. Autos not used for work or commuting receive lower rates compared to those used for work or business. Ask your agent if your car insurance declarations sheet shows the correct usage for each vehicle, because improper ratings can cost you money.

Policy discounts you shouldn't miss

Auto insurance companies don't always publicize every discount very clearly, so we researched both the well known and the more hidden ways to save on car insurance.

No Accidents - Drivers with accident-free driving histories pay much less when compared to accident-prone drivers.
Low Mileage Discounts - Low mileage vehicles could be rewarded with better rates on cars that stay parked.
Safety Course Discount - Taking part in a defensive driving course could possibly earn you a 5% discount if your company offers it.
Distant Student - Any of your kids who are attending college and don't have a car can receive lower rates.
Homeowners Discount - Simply owning a home may earn you a small savings because maintaining a house shows financial diligence.
Drivers Education - Cut your cost by having your teen driver successfully complete driver's ed class if offered at their school.

As a disclaimer on discounts, many deductions do not apply the the whole policy. Some only apply to the cost of specific coverages such as comp or med pay. So even though it sounds like having all the discounts means you get insurance for free, car insurance companies aren't that generous.

To choose insurance companies with discount car insurance rates in North Carolina, click this link.

Save $429 a year? Really?

Car insurance providers like Progressive, Allstate and GEICO consistently run television and radio advertisements. They all make the same claim about savings if you change to their company. How does each company claim to save you money?

All the different companies are able to cherry pick for the driver that makes them money. For instance, a driver they prefer might be over the age of 50, has no tickets, and has excellent credit. Any driver who matches those parameters will qualify for the lowest rates and is almost guaranteed to save when switching.

Drivers who don't qualify for these standards will be quoted a higher premium which leads to the customer not buying. The ad wording is "people who switch" but not "drivers who get quotes" save that much. That's the way companies can truthfully make those claims. This emphasizes why you should quote coverage with many companies. You cannot predict which car insurance company will have the lowest rates.

Find out more about car insurance

Even more information is located at the North Carolina Department of Insurance website. Visitors are able to read industry bulletins, find disaster information, discover disciplinary actions, and read enforcement actions against agents and companies.

Shop smart and save

Cheap car insurance is attainable both online and also from your neighborhood Oak Island agents, and you should be comparing both to have the best selection. Some companies may not provide online price quotes and these small, regional companies work with independent agents.

While you're price shopping online, it's very important that you do not buy poor coverage just to save money. There are too many instances where an insured dropped collision coverage and learned later they didn't purchase enough coverage. Your strategy should be to get the best coverage possible at an affordable rate while still protecting your assets.