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

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

You have multiple to pick from, and although it's nice to be able to choose, having more makes it harder to compare rates.

It's important to do rate comparisons at least once a year since insurance rates are constantly changing. Even if you got the best deal two years ago you can probably find a better price now. So just block out anything you think you know about auto insurance because it's time to teach you the only way to remove unneeded coverages and save money.

Choosing the best insurance company for you in Rockingham is not that difficult. Essentially every driver who carries auto insurance will be able to save money. Although North Carolina vehicle owners do need to know how the larger insurance companies price online insurance and take advantage of how the system works.

Why some people pay less for insurance in Rockingham

Consumers need to have an understanding of the factors that go into determining auto insurance rates. Knowing what impacts premium levels allows you to make educated decisions that may reward you with much lower annual insurance costs.

Battle of the sexes - Statistics demonstrate that women are safer drivers than men. That doesn't necessarily mean that women are better drivers. Both sexes cause accidents at about the same rate, but the males cause more damage. They also get more serious tickets like reckless driving and DUI. Youthful male drivers are most likely to cause an accident and are penalized with high auto insurance rates.
Do you need those extra coverages? - There are many extra coverages that you can buy if you aren't careful. Coverages for personal injury protection, towing coverage and motor club memberships are some examples. These may sound like a good investment when you first buy your policy, but if you don't need them eliminate them to save money.
Your credit rating is important - Credit score is a important factor in calculating your auto insurance rates. Therefore, if your credit is lower than you'd like, you could save money insuring your by spending a little time repairing your credit. Drivers with high credit scores tend to file fewer claims and have better driving records than drivers who have poor credit.
Proper usage rating affects rates - The more miles you rack up on your car in a year the more you will pay for auto insurance. Most companies price each vehicle's coverage based upon how you use the vehicle. Cars used primarily for pleasure use can get a lower rate as compared to vehicles used primarily for driving to work. Double check that your auto insurance policy shows how each vehicle is driven, because it can save money.
Claim-free discounts can add up - Car insurance companies in North Carolina generally give lower rates to insureds who file claims infrequently. If you frequently file small claims, you can look forward to either higher rates or even cancellation. Your insurance policy is intended to be relied upon for the large, substantial claims.
Multi-policy discounts can save money - Most insurance companies will give a discount to people who buy several policies from them in the form of a multi-policy discount. Even if you're getting this discount you still need to comparison shop to make sure you are getting the best deal. You may still be able to find a better deal by insuring with multiple companies.
Don't skimp on liability - Liability insurance provides coverage if ever a jury decides you are liable for damages from an accident. Liability insurance provides legal defense coverage which can be incredibly expensive. This coverage is very inexpensive compared to physical damage coverage, so do not skimp.

More discounts equal less premium

Companies that sell car insurance don't list all their discounts very clearly, so here is a list some of the best known as well as the least known discounts you could be receiving.

Senior Discount - If you're over the age of 55, you may qualify for reduced rates.
Defensive Driver - Successfully completing a course teaching defensive driving skills could possibly earn you a 5% discount if your company offers it.
Anti-lock Brakes - Vehicles equipped with ABS or steering control are safer to drive and qualify for as much as a 10% discount.
New Vehicle Savings - Buying coverage on a new vehicle can cost up to 25% less because new vehicles have to meet stringent safety requirements.
Federal Government Employee - Employees or retirees of the government could cut as much as 10% off with select insurance companies.
Theft Prevention Discount - Vehicles with anti-theft systems prevent vehicle theft and will save you 10% or more.
Organization Discounts - Affiliation with a qualifying organization may earn a discount on auto insurance.

A little note about advertised discounts, some credits don't apply the the whole policy. Most only reduce individual premiums such as liability, collision or medical payments. So even though it sounds like adding up those discounts means a free policy, you won't be that lucky.

To choose companies offering auto insurance discounts in North Carolina, click here.

Switch companies and save? Really?

Auto insurance companies such as Progressive, GEICO, Allstate and State Farm constantly bombard you with ads in print and on television. They all seem to have a common claim about savings if you switch to them. How does each company say the same thing?

Insurance companies are able to cherry pick for the type of driver that makes them money. An example of a desirable insured might be profiled as between the ages of 40 and 55, has no tickets, and chooses high deductibles. A propective insured that hits that "sweet spot" will get the preferred rates and therefore will save when switching.

Consumers who do not match these standards will have to pay higher prices and this can result in business not being written. The ads state "customers that switch" not "everyone that quotes" save money. That's the way companies can truthfully state the savings. Because of the profiling, you should get quotes from several different companies. It's not possible to predict which auto insurance company will give you the biggest savings.

Find out more about auto insurance

Even more information is available at the North Carolina Department of Insurance website. North Carolina drivers can learn about insurance regulations, discover disciplinary actions, find out industry alerts, and file complaints about an insurance agent or broker.

Other informative sites include this Car Insurance FAQ and this page of insurance agents in Rockingham.

The best insurance company isn't always the cheapest

When buying insurance coverage, make sure you don't buy poor coverage just to save money. There are many occasions where an insured dropped comprehensive coverage or liability limits to discover at claim time that their decision to reduce coverage ended up costing them more. Your aim should be to get the best coverage possible at a price you can afford.

The cheapest auto insurance can be found on the web and with local Rockingham insurance agents, so you should be comparing quotes from both in order to have the best price selection to choose from. Some insurance companies do not offer online price quotes and most of the time these smaller companies sell through independent agents.