Smart shoppers know that insurance companies don’t want policyholders to shop around. Consumers who shop around once a year will probably buy a new policy because the odds are good of finding lower prices. A recent survey found that drivers who compared rates regularly saved on average $3,450 over four years compared to people who never shopped for cheaper rates.
If finding the best price on insurance is your objective, knowing the best ways to find and compare coverage rates can help you succeed in finding affordable rates.
Truthfully, the best way to get the cheapest auto insurance rates in Memphis is to begin comparing prices regularly from providers who provide auto insurance in Tennessee.
- Step 1: Try to learn a little about how insurance works and the factors you can control to keep rates in check. Many policy risk factors that result in higher prices such as at-fault accidents, careless driving, and a less-than-favorable credit score can be rectified by making minor changes to your lifestyle.
- Step 2: Compare rates from direct, independent, and exclusive agents. Exclusive agents and direct companies can provide rates from one company like GEICO or Allstate, while independent agents can quote prices for a wide range of insurance providers.
- Step 3: Compare the new rate quotes to your existing policy and determine if there is any savings. If you find a lower rate quote, ensure there is no coverage lapse between policies.
- Step 4: Notify your current company of your intention to cancel your current car insurance policy and submit a completed application and payment for the new policy. As soon as you receive it, place your new certificate of insurance with the vehicle registration.
The key thing to know about shopping around is to try to use the same physical damage deductibles and liability limits on every quote and and to get prices from as many auto insurance providers as possible. Doing this guarantees an accurate price comparison and a thorough price selection.
Just remember that quoting more helps improve the odds of finding more affordable insurance. Some smaller insurers do not give price estimates online, so it’s important to compare prices from them, too.
The companies shown below provide price quotes in Memphis, TN. If your goal is to find cheap car insurance in Tennessee, it’s highly recommended you get rate quotes from several of them to find the lowest auto insurance rates.
You Can Change Your Insurance Prices
Multiple criteria are part of the equation when you get a price on insurance. Most are fairly basic like your driving record, but some are less obvious such as whether you are married and annual miles driven.
The itemized list below are a partial list of the pieces used by companies to determine premiums.
Car features impact prices – Choosing to buy a car that has a built-in theft deterrent system can help lower your rates. Anti-theft devices such as OnStar found on GM vehicles, advanced tracking like LoJack, and vehicle immobilization systems all help stop auto theft and help lower rates.
Don’t get traffic citations – Your driving record has a huge affect on how much you pay. Just one ticket can increase rates twenty percent or more. Drivers who don’t get tickets receive lower rates than bad drivers. Drivers unfortunate enough to have dangerous tickets like hit and run, DWI or reckless driving convictions may need to submit a SR-22 form to the state department of motor vehicles in order to legally drive a vehicle.
Is you job costing you more? – Careers like military personnel, social workers, and emergency personnel generally pay higher rates than average due to intense work-related stress and lots of time spent away from family. Other careers like farmers, historians and performers get better rates.
Buy a safe car and pay less – Vehicles with high crash test scores get lower rates. Safe vehicles reduce occupant injuries and lower rates of occupant injuries means less money paid by your insurance company and cheaper rates on your policy. If the Hyundai Sonata Hybrid earned at least four stars on Safercar.gov you may qualify for a discount.
Better car insurance rates for uninterrupted coverage – Driving without insurance can get your license suspended and companies may charge more for letting your insurance expire. Not only will you pay more, being ticketed for driving with no insurance may result in a hefty fine and possibly a revoked license. You may then have to file a SR-22 with the Tennessee motor vehicle department to get your license reinstated.
High policy claims frequency drives up prices – If you are the type of insured that files lots of claims don’t be surprised to see either higher rates or even cancellation. Auto insurance companies in Tennessee give lower rates to policyholders that do not abuse their auto insurance. Auto insurance is intended for claims that pose a financial burden.
Hyundai Sonata Hybrid insurance loss statistics – Companies use data from past claims to help calculate premium rates. Vehicles that the data determines to have higher claim amounts or frequency will have higher premium rates.
The table below shows the historical loss data for Hyundai Sonata Hybrid vehicles. For each policy coverage type, the claim amount for all vehicles averaged together is set at 100. Percentages below 100 indicate a favorable loss history, while values that are above 100 point to more losses or larger claims.
| Make and Model | Collision | Property Damage | Comp | Personal Injury | Medical Payment | Bodily Injury |
|---|---|---|---|---|---|---|
| Hyundai Sonata Hybrid | 142 | 116 | 119 | 124 | 138 | 121 |
Data Source: iihs.org (Insurance Institute for Highway Safety) for 2013-2015 Model Years
Auto insurance protects more than just your car
Despite the high cost, buying auto insurance serves a purpose in several ways.
- Just about all states have mandatory insurance requirements which means the state requires a specific minimum amount of liability in order to get the vehicle licensed. In Tennessee these limits are 25/50/15 which means you must have $25,000 of bodily injury coverage per person, $50,000 of bodily injury coverage per accident, and $15,000 of property damage coverage.
- If you have a lien on your Hyundai, it’s most likely the lender will make it mandatory that you have comprehensive coverage to ensure they get paid if you total the vehicle. If you do not pay your insurance premiums, the bank may buy a policy for your Hyundai for a lot more money and require you to fork over a much higher amount than you were paying before.
- Auto insurance protects your vehicle and your assets. It also can pay for many types of medical costs that are the result of an accident. Liability coverage, the one required by state law, will also pay for a defense attorney in the event you are sued. If you have damage to your Hyundai as the result of the weather or an accident, comprehensive and collision coverage will pay to repair the damage minus the deductible amount.
The benefits of insuring your Sonata Hybrid definitely exceed the price paid, particularly when you have a large claim. Despite what companies tell you, the average driver overpays as much as $800 each year so it’s very important to do a rate comparison each time the policy renews to be sure current rates are still competitive.