A recent U.S. study reported that roughly 33% of Americans have never shopped around or compared prices for automobile insurance. Among these individuals, the leading reasons mentioned were a lack of time and a dislike of paperwork. However, it is wise to make car insurance comparisons by obtaining quotes either online or through your agent. Always maintain adequate levels of coverage to repair or replace your vehicle and to protect you from potential liability. As a precaution, be sure to review the “fine print” on policies that appear overly affordable as well.
Arizona Legislation Could Raise Insurance Rates
The Arizona Senate Committee on Transportation and Public Safety have proposed a measure that could soon cause premiums to rise meaning the time to consider and compare car insurance options is now. Arizona currently requires motorists to maintain a minimum of $15,000 in bodily injury liability per person ($30,000 per accident) and $10,000 in property damage liability coverage. SB 1087 would increase these levels from $30,000 per accident to $50,000 and increase property coverage from $10,000 to $15,000.
This would be the first increase in the liability minimums in over 40 years. Lobbyist Rob Dalager estimates that monthly premiums could rise by as much as $8.00 per month. A similar proposal passed in 2018; however, it was vetoed by the governor who cited affordability concerns among those with low income. Senator Lupe Contreras supports the measure because most vehicles today are unable to be replaced for $10,000.
As with most consumer products, searching for the best deal is often the smart thing to do. Prior to comparing policies, you should have a basic understanding of auto insurance. Check with friends, relatives, and co-workers to see if they have any recommendations.
Choice of Vehicle
Your choice of vehicle is likely to impact your auto insurance rates. Cars that are expensive will be more costly to repair and replace. Expect sports and performance cars to be more expensive to insure. Certain models have minimal theft prevention measures and are commonly stolen. Be sure to check insurance pricing before purchasing your next vehicle.
Look for opportunities to safely reduce your coverage. Those will an older car may consider no longer maintaining optional collision and comprehensive coverage. You can use tools online including Kelley Blue Book or Edmunds to estimate the value of your vehicle.
Selecting a Higher Deductible
Raising your deductible on your auto insurance policy can reduce your premium. However, you need to be sure that you will be able to comfortably afford paying the higher deductible if necessary. An increase from $200 to $500 may save you up to 30%. Raising the amount to $1,000 could potentially result in a 40% savings.
Consider available ways to save through “bundling” policies. You may be eligible for savings if you have multiple vehicles on the same policy. You may be able to switch your homeowners, renters, or life insurance to the same company and get better rates. Consult with your insurance agent to identify potential offers.
Those who maintain a clean driving record through safe driving are typically afforded lower rates. Similarly, those who do not file any claims for a period of several years may be eligible for better rates. Keep in mind that insurers will look for any claims in the prior six-year period.
Maintaining Good Credit
Insurance companies use statistical data as a means of determining rates. Data has shown that those with good credit are less likely to file an insurance claim. It may be helpful to review a copy of your credit report to check for any errors that may hinder your credit standing.
Look for Discounts
Auto insurance companies routinely advertise discounts that you may qualify for. Students are often eligible for a discount by maintaining good grades. Senior adults or active members of the armed forces are often provided discounts as well. Some companies will offer a discount if you complete a defensive driving course.
Low Mileage Policies
According to the Federal Highway Administration, motorists in the U.S. currently drive an average of 13,476 miles annually. Those who drive well below average should consider a policy geared for low mileage drivers. It is estimated that these policies could save up to 10% on auto insurance premiums.
Potential Group Discounts
Those who are members of a professional organization or involved in an alumni group may be eligible for certain discounts. You should check with your employer to see if they have any group discount arrangements as well.
Consider Buying from an Independent Agent
Unlike captive insurance agents who represent a specific carrier, independent agents offer insurance through various carriers. Having an independent agent compare car insurance rates through multiple companies may end up saving you some money. These professionals are also likely to be aware of discounts that you may qualify for.
Established Agency for Auto Insurance in Arizona
The Gebhardt Insurance Group located in Casa Grande has been providing insurance solutions in the region now for over 15 years. We remain committed to providing our customers with excellent coverage at affordable prices. We now represent over 40 of the top insurance carriers. Contact our office today at (520) 836-3244.