4 Tips for Checking the Accuracy of Discount Auto Insurance Quotes

You can use these four tips for checking the accuracy of discount auto insurance quotes when you start shopping around. In today’s highly competitive market of car insurance, it is important to know that the price you receive will not fluctuate, so you can budget your finances accordingly.

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These days, there are large numbers of auto insurance providers that offer free quotes for low-cost coverage. However, your decision to select one must come from fact-based research and a basic understanding of coverage. You cannot afford to waste time or money with a car insurance company that does not play fair.

Have a Plan

To assist you with your search for discount car insurance, you should establish a plan and make every attempt to stay on track. If you organize and prepare, you will not feel overwhelmed as you begin the process.

Remember, it is very easy for some companies to lure you in with false claims or promises. To succeed in your efforts, you will need to set aside a few hours to pool your resources and review the information you find. Always compare companies’ offers before making this important decision.

Check Your Background First

Every auto insurance company requires specific information from you regarding your vehicle and personal history. They need to place you in a category or group to determine your risk and, therefore, offer you an estimate for your premium. You need to make certain that they have access to the correct information. This is especially true for your driving record and credit history.

Your driving history is something that you can retrieve quite easily for a small fee by contacting your local Department of Motor Vehicles.

The great part about this is you have the opportunity to review the same information on your driving record as the auto insurance provider, and can call attention to any issues in advance.

Your credit history is also something that carriers use to assess your risk. They tie your rate into the way you manage finances and debts. If you repay loans or credit cards in an untimely manner, they may decide to classify you as a high risk.

While the Fair Credit Reporting Act does provide you with certain levels of protection, it is your responsibility to confirm the contents of your credit report and point out any inaccuracies.

If you do not have current records of both your driving and credit history, it is nearly impossible to know whether you can receive the best price for your car insurance. Therefore, you should complete these two steps prior to seeking inexpensive automobile insurance coverage.

Know Your Vehicle

Knowing how the auto insurance industry views your vehicle is vital to confirming a true quote, as there are so many myths surrounding certain types of cars. For instance, many people think that if they own a sports car, they can expect soaring rates. However, this is not necessarily the case. In many cases, luxury vehicles hold the top spot.

When reviewing Automobile Magazine’s website, clearly you can see the annual cost to insure a 2012 Mercedes-Benz C-Class, at $1,659, is almost $300 higher than coverage for the 2012 Chevrolet Corvette, at $1383. Ironically, the Mercedes-Benz C-Class retails between $34,800 and $61,430, while the Corvette begins at $49,600 and goes as high as $111,600.

Strangely enough, the Corvette is much more costly, yet the owner of this vehicle can actually save more money each year than the driver of a supposedly safer four-door sedan.

This is one example of how myths have caused consumers to spend thousands of dollars more each year for car insurance.

If you want to receive a reliable estimate for your car insurance, you must complete a thorough examination of your vehicle and study the details.

This way, if your rate appears too high, you will know that the car insurance company is neither honest nor trustworthy. You can feel good about eliminating their service from your search and continue looking for another provider that matches your research results.

Learn How Car Insurance Works in Your State

Another pointer is for you to have good insight into the way car insurance works in your state, as the rates vary widely. You may have a friend or family member living in another state who pays $700 per year for liability insurance, while your price could be as much as $900 to $1,000 annually.

It is never a good idea to compare price points with anyone residing outside of your area, as they may not have the same regional factors as you do.

Instead, confirm the state average where you live by going directly to one of the resources available, like the Department of Insurance or the Commissioner of Insurance’s office. The guidelines are specific to your home’s location, and the information is regularly updated.

You can also use a very valuable tool called the Consumer Price Index, located at the Bureau of Labor Statistics’ website. If you review the data, you can see very easily how car insurance prices change each year.

Using different variables, the index calculates rates for private passenger vehicle insurance for the most common types of coverage. The index includes liability, comprehensive, collision, personal injury protection, medical payments, underinsured and uninsured motorist.

The Company You Choose Should Actually Provide the Quote

Sometimes, you can go to a website that states you can find cheap rates within a few minutes after you complete a generic application. Unfortunately, these types of sites take your information and route you elsewhere. They do not actually provide you with any useful data.

Even worse, they now have your telephone number and email address. You may begin receiving telephone calls or multiple email inquiries regarding your submission or other solicitations. Many people never realize they give away their rights, as they just focus on the free estimate.

However, if you take a moment to review this type of site, you may notice a pre-checked disclaimer at the bottom. If you rush through the process, you can fail to deselect this option and, before you realize, your phone begins to ring incessantly. To avoid this pitfall, make sure you choose a car insurance company that can actually provide you with a quote.

Most large auto insurance providers offer free quotes directly through their website or by having you call a representative.

The only issue you may encounter is that the procedure can take longer than two or three minutes. This is because they are really pulling data and cross-referencing vital information, rather than looking for ways to send you elsewhere.

If you would rather consult with an agent or broker, you should prepare for a hard sell. This is because agents and brokers make most of their money from commissions. They are not usually in the market for a question-and-answer session, unless they receive some type of benefit.

However, if you are strong in your convictions, and do not mind saying no, you will fare better with a broker. At the very least, you will walk away with excellent knowledge and a great contact if you decide to pursue this option.

Make Sure the Company Meets All of Your Needs

Whenever the question of discount car insurance arises, many people start thinking about what they can eliminate. This is because, for years, the average consumer has been convinced that they must give up something in order to qualify for cheaper rates; sadly, some still believe this to be fact.

The good news is that you can definitely find an auto insurance carrier that offers quality service and values your business. You do not have to settle for mundane customer service or complicated claims procedures.

Just make sure you have a solid strategy and enough confidence to walk away when something seems too good to be true.

Be careful with any company that guarantees to deliver more than what is fair. They may be covering up for something. As a smart consumer, you should not look for special treatment, especially during the initial application process. You should only want what you qualify for, and for the company to keep its word.

Remain in Pursuit

Most people who find inexpensive car insurance rates and great service stay with their provider for years, and there is nothing wrong with this choice. After all, you may receive extended benefits and loyalty bonuses if you are a good, devoted customer. Others remain steadfast, even when it seems as if the relationship becomes one-sided.

If this describes your situation, you should bear in mind one simple fact: remain in pursuit of a better value. You should never allow an automobile insurance company to reward your allegiance with complacency. There must be a balance between what they provide and what your personal expectations are.

To be fair, if you notice a change in any level of service, you should reach out to make a few inquiries. Perhaps they just made a few internal modifications and you can give them some time to work through the adjustment period.

Just make sure you stay alert. If you still do not see any improvements, or worse, see a steady decline in service, it may be time for you to start looking around again.

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