6 Discounts Bella Vista Consumers Forget when Buying Car Insurance
Nobody I know looks forward to paying for car insurance, especially when the price is too high. There are many auto insurance companies to choose from, and even though it’s nice to have a selection, too many choices makes it more difficult to compare rates.
It’s a great practice to do rate comparisons every six months because prices change quite often. Despite the fact that you may have had the lowest rates on your last policy the chances are good that you can find a lower rate today. So block out anything you think you know about car insurance because you’re going to learn the fastest way to save on car insurance.
Take advantage of discounts
Companies offering auto insurance do not list all their discounts in a way that’s easy to find, so we researched some of the best known as well as the least known savings tricks you should be using. If you aren’t receiving every discount you qualify for, you’re just leaving money on the table.
- Pay Upfront and Save – By paying your policy upfront instead of paying each month you may reduce your total bill.
- Homeowners Savings – Owning a home in Bella Vista may trigger a car insurance policy discount because owning a home is proof that your finances are in order.
- Discount for Life Insurance – Select insurance companies reward you with better rates if you take out auto and life insurance together.
- Bundle and Save – If you insure your home and vehicles with one company you could get a discount of at least 10% off all policies.
- Distant Student – Youth drivers who are attending college without a vehicle on campus can receive lower rates.
- Employee of Federal Government – Being employed by or retired from a federal job can save as much as 8% with select insurance companies.
Drivers should understand that some credits don’t apply to the entire cost. A few only apply to the cost of specific coverages such as collision or personal injury protection. So despite the fact that it appears you can get free auto insurance, it just doesn’t work that way.
To see a list of providers with the best car insurance discounts in Arkansas, click here to view.
How to know if you need help
When it comes to buying adequate coverage, there really is not a “perfect” insurance plan. Everyone’s needs are different so this has to be addressed. For instance, these questions might help in determining whether or not you would benefit from professional advice.
- Does coverage extend to a rental car in a foreign country?
- Am I getting all the discounts available?
- Should I put collision coverage on all my vehicles?
- How many claims can I have before being cancelled?
- I have good health insurance, so how much medical payments coverage do I need?
- How much underlying liability do I need for an umbrella policy?
- Do I need PIP coverage since I have good health insurance?
- Is my vehicle covered for flood damage?
If you don’t know the answers to these questions then you might want to talk to an insurance agent. To find an agent in your area, complete this form or go to this page to view a list of companies. It is quick, free and may give you better protection.
Do you really save 40% when you switch?
Consumers in Arkansas can’t get away from ads for car insurance savings by State Farm, GEICO and Progressive. They all seem to make an identical promise that you’ll save big if you switch to their company.
But how can every company claim to save you money? This is how they do it.
All companies are able to cherry pick for the type of driver that earns them a profit. For instance, a driver they prefer might be between the ages of 40 and 55, has no driving citations, and drives newer vehicles. A customer getting a price quote who meets those qualifications will qualify for the lowest rates and most likely will pay quite a bit less when switching companies.
Potential insureds who don’t meet these standards will have to pay higher prices and ends up with the customer not buying. The ad wording is “customers who switch” not “everybody who quotes” save that much money. That’s why insurance companies can confidently advertise the savings. Because of the profiling, you should get quotes from several different companies. It is impossible to predict which car insurance company will have the lowest rates.
Specific coverages
Learning about specific coverages of your policy aids in choosing which coverages you need at the best deductibles and correct limits. The coverage terms in a policy can be impossible to understand and reading a policy is terribly boring. Below you’ll find the usual coverages available from car insurance companies.
Medical costs insurance – Personal Injury Protection (PIP) and medical payments coverage pay for bills like prosthetic devices, X-ray expenses, nursing services and hospital visits. They are often used in conjunction with a health insurance program or if there is no health insurance coverage. They cover you and your occupants and also covers being hit by a car walking across the street. Personal Injury Protection is only offered in select states and gives slightly broader coverage than med pay
Comprehensive or Other Than Collision – This coverage pays for damage from a wide range of events other than collision. You need to pay your deductible first then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage pays for things such as falling objects, a broken windshield, damage from getting keyed, fire damage and rock chips in glass. The highest amount a car insurance company will pay at claim time is the ACV or actual cash value, so if your deductible is as high as the vehicle’s value it’s probably time to drop comprehensive insurance.
UM/UIM Coverage – Your UM/UIM coverage provides protection from other drivers when they either have no liability insurance or not enough. Covered losses include medical payments for you and your occupants and also any damage incurred to your vehicle.
Due to the fact that many Arkansas drivers carry very low liability coverage limits (25/50/25), it doesn’t take a major accident to exceed their coverage limits. So UM/UIM coverage is a good idea.
Collision coverage – Collision coverage covers damage to your vehicle from colliding with an object or car. You will need to pay your deductible and the rest of the damage will be paid by collision coverage.
Collision coverage protects against claims such as sideswiping another vehicle, colliding with another moving vehicle, crashing into a ditch and crashing into a building. Collision coverage makes up a good portion of your premium, so consider dropping it from lower value vehicles. Drivers also have the option to bump up the deductible to bring the cost down.
Auto liability – This can cover injuries or damage you cause to people or other property. Liability coverage has three limits: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You commonly see liability limits of 25/50/25 which stand for a limit of $25,000 per injured person, a per accident bodily injury limit of $50,000, and a total limit of $25,000 for damage to vehicles and property.
Liability coverage pays for claims such as medical services, court costs and medical expenses. How much coverage you buy is a personal decision, but consider buying as large an amount as possible. Arkansas state law requires minimum liability limits of 25,000/50,000/25,000 but it’s recommended drivers buy more coverage.
More Arkansas car insurance information
Even more information is available at the Arkansas Insurance Department website. Arkansas drivers can find out industry alerts, learn about specific coverages, download brochures, and read state legal mandates and laws.
Other useful links include BankRate.com’s Car Insurance: When not to Skimp and this page where you can research Bella Vista insurance agents.
In conclusion
As you restructure your insurance plan, make sure you don’t sacrifice coverage to reduce premiums. There are many occasions where an insured dropped comprehensive coverage or liability limits and learned later that saving that couple of dollars actually costed them tens of thousands. The proper strategy is to buy the best coverage you can find at an affordable rate while still protecting your assets.
Cheap car insurance can be sourced online and with local Bella Vista insurance agents, so compare prices from both to get a complete price analysis. Some insurance companies do not offer the ability to get a quote online and most of the time these regional insurance providers sell through independent agents.