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

Expensive auto insurance can take a big chunk out of your bank account, especially in this economy. Shopping your coverage around is a great way to make sure you're not throwing money away. With so many different company options, it's difficult to find the right provider.

It's important to compare rates yearly since insurance rates are constantly changing. Just because you had the lowest rates six months ago you can probably find a better price now. Starting now, ignore everything you know about auto insurance because it's time to teach you the tricks you need to know to properly buy coverages and cut your premium.

You have some control over your rates

Consumers need to have an understanding of the factors that go into determining auto insurance rates. When you know what positively or negatively influences your rates enables informed choices that can help you get much lower annual insurance costs.

Listed below are a few of the "ingredients" auto insurance companies consider when setting your rates.

A clean driving record saves money - Even a single moving violation can boost insurance rates twenty percent or more. Careful drivers receive lower rates than bad drivers. Drivers who get serious violations like reckless driving, hit and run or driving under the influence may be required to submit a SR-22 or proof of financial responsibility with the DMV in their state in order to continue driving.
Rural vs Urban Areas - Residing in small towns and rural areas has it's advantages when buying auto insurance. Urban drivers regularly have congested traffic and longer commutes to work. Fewer drivers translates into fewer accidents.
Do you qualify for a multi-policy discount? - Most insurance companies give discounts to people who have multiple policies with them, otherwise known as a multi-policy discount. Even with this discount, you may still want to comparison shop to ensure the best deal.
The more you drive the more you pay - The more miles you rack up on your car in a year's time the higher your rates will be. Most insurance companies price each vehicle's coverage based on their usage. Cars used primarily for pleasure use qualify for better rates compared to those used for work or business. Double check that your auto insurance policy properly reflects how each vehicle is driven.
Safer cars are cheaper to insure - Vehicles with high crash test scores get lower rates. Safer cars reduce injuries and better occupant protection translates into savings for insurance companies passed on to you as lower rates.

Policy discounts you shouldn't miss

Car insurance can cost a lot, but there could be available discounts that you may not even be aware of. Certain discounts will be applied when you purchase, but lesser-known reductions have to be requested specifically before being credited. If you don't get every credit you deserve, you are paying more than you should be.

Good Student Discount - This discount can earn a discount of 20% or more. This discount can apply until age 25.
Multi-policy Discount - If you insure your home and vehicles with one company you could get a discount of at least 10% off all policies.
Early Signing - A few companies offer discounts for signing up prior to your current policy expiration. This can save 10% or more.
Government Employees - Employees or retirees of the government could cut as much as 10% off with certain companies.
New Vehicle Savings - Insuring a new car can cost up to 25% less because new vehicles have to meet stringent safety requirements.

It's important to note that some credits don't apply to your bottom line cost. Some only reduce the cost of specific coverages such as medical payments or collision. So even though it sounds like adding up those discounts means a free policy, you're out of luck. But any discount will help reduce the amount you have to pay.

To choose providers offering auto insurance discounts in Wisconsin, click here.

Save $429 a year? Really?

Wisconsin drivers can't ignore all the ads for car insurance savings by State Farm and Allstate. All the ads have a common claim that you can save if you switch to their company.

But how can every company say the same thing?

Insurance companies have a preferred profile for the driver that makes them money. For example, a preferred risk might be profiled as between the ages of 30 and 50, has no prior claims, and has a high credit rating. A propective insured that hits that "sweet spot" will get very good rates and is almost guaranteed to save a lot of money.

Consumers who don't qualify for this ideal profile will be charged higher prices and this can result in business not being written. The ads say "people who switch" but not "drivers who get quotes" save that much. This is how insurance companies can state the savings.

That is why you should compare as many rates as you can. It's not possible to predict which insurance companies will have the lowest rates.

Insurance agents can help

When buying adequate coverage for your personal vehicles, there really is no single plan that fits everyone. Everyone's needs are different and your policy should reflect that. For example, these questions can help discover whether your personal situation might need an agent's assistance.

Should I buy only the required Wisconsin minimum liability coverage?
What are the best liability limits?
Does my car insurance cover rental cars?
Am I covered when driving in Canada or Mexico?
Do I have coverage for damage caused while driving under the influence?
When does my teenage driver need to be added to my policy?
Who is covered when they drive my vehicle?

If you can't answer these questions then you might want to talk to a licensed insurance agent. If you don't have a local agent, complete this form or click here for a list of auto insurance companies in your area. It is quick, free and can provide invaluable advice.

Learn more about auto insurance in Wisconsin

More information can be found on the website for the Wisconsin Office of the Commissioner of Insurance through this link. Wisconsin drivers can file complaints about a company, view agent and company licensing information, read consumer alerts, and file complaints about an insurance agent or broker.

Other informative sites include III.org's auto insurance page and this directory of insurance agents in Plum City Wisconsin.

And the best car insurance company is...

Throughout this article, we presented a lot of ways to save on auto insurance. The key thing to remember is the more you quote, the better your comparison will be. Drivers may discover the lowest rates come from an unexpected company. Some small companies often have lower prices on specific markets compared to the large companies like .

As you restructure your insurance plan, do not buy poor coverage just to save money. There have been many cases where consumers will sacrifice uninsured motorist or liability limits only to regret that they should have had better coverage. Your goal should be to find the BEST coverage at an affordable rate, not the least amount of coverage.