It goes without saying that auto insurance companies want to keep you from shopping around. People who shop around for a cheaper policy are very likely to buy a new policy because of the good chance of finding more affordable rates. A study showed that people who routinely shopped around saved about $3,500 over four years compared to drivers who never shopped around for cheaper prices.
If saving the most money on insurance in Memphis is your objective, then knowing how to find and compare cheaper coverage can make it easier for you to save money.
If you want to save money, the best way to find affordable quotes for auto insurance rates in Memphis is to make a habit of comparing prices annually from insurers in Tennessee. Prices can be compared by completing these steps.
- Gain an understanding of how auto insurance works and the measures you can take to prevent rate increases. Many risk factors that cause high rates like speeding and your credit history can be controlled by making lifestyle changes or driving safer. Later in this article we will cover more information to lower rates and find more discounts that you may not know about.
- Compare prices from independent agents, exclusive agents, and direct companies. Exclusive agents and direct companies can only quote rates from a single company like Progressive or Allstate, while agents who are independent can provide rate quotes from multiple insurance companies.
- Compare the quotes to your existing policy and determine if cheaper Pacifica coverage is available. If you find a lower rate quote, ensure there is no coverage lapse between policies.
- Tell your current agent or company to cancel your current car insurance policy. Submit any necessary down payment along with the completed application to the newly selected company. Make sure you keep the new certificate verifying coverage above your visor, in the console, or in the glove compartment.
The critical component of shopping around is to compare the same amount of coverage on every price quote and and to compare every company you can. Doing this helps ensure an accurate price comparison and the best rate selection.
When price shopping your coverage, quoting more helps you find the best rates.
The following companies offer free rate quotes in Memphis, TN. If you want the best auto insurance in Memphis, TN, we recommend you visit two to three different companies to find the most competitive auto insurance rates.
Seven Things That Impact Your Insurance Premiums
Lots of factors are used when you quote your car insurance policy. Some are pretty understandable like a motor vehicle report, but others are more transparent such as your marital status or your commute time. A large part of saving on car insurance is knowing some of the factors that help calculate the level of your policy premiums. If you have a feel for what determines premiums, this empowers consumers to make smart changes that can earn you lower rates.
The following are some of the most rate-impacting factors used by insurance companies to determine your rate level.
- Lower performance equals lower insurance premiums – The make and model of the car you are insuring makes a substantial difference in your rates. Lower performance four cylinder passenger cars generally receive the lowest base rates, but the cost you end up paying is determined by many additional factors.
- Save money by eliminating add-on coverages – There are quite a few extra coverages you can purchase on your Pacifica policy. Insurance for things like replacement cost coverage, accidental death, and Farm Bureau memberships are examples of these. You may think they are a good idea when talking to your agent, but now you might not need them so remove them from your policy.
- Do you work long hours in a stressful vocation? – Jobs such as fire fighters, executives, and stock brokers generally have higher premiums than the average policyholder due to intense work requirements and extremely grueling work hours. On the flip side, jobs like actors, engineers and retirees get better rates.
- File car insurance claims and pay more – If you are the type of insured that files lots of claims you shouldn’t be surprised to get either policy cancellation or increased premiums. Auto insurance companies in Tennessee generally give the lowest premiums to insureds who do not file claims often. Your car insurance is meant to be used in the event of more catastrophic claims.
- Never allow your policy to lapse – Allowing your coverage to lapse can be a sure-fire way to trigger a rate increase. Not only will you pay higher rates, failure to provide proof of insurance will get you fines and jail time. You could then be forced to file a SR-22 with the Tennessee motor vehicle department to get your license reinstated.
- Higher coverage deductibles are cheaper – Physical damage protection, otherwise known as comp (or other than collision) and collision, protects your Chrysler from damage. Some instances where coverage would apply are running into the backend of another car, hail damage, and burglary. The deductibles define the amount you are required to spend out-of-pocket in the event of a claim. The higher the amount the insured has to pay upfront, the lower your rates will be.
- Your liability protection limits – A critical coverage on your policy, liability insurance is the protection if ever you are ruled to be at fault for causing damage or personal injury in an accident. Liability insurance provides legal defense coverage which can be incredibly expensive. Liability insurance is pretty cheap as compared to coverage for physical damage, so drivers should buy more than the minimum limits required by law.
Auto insurance just makes sense
Even though it can be expensive, insurance is required in Tennessee but also provides important benefits.
First, just about all states have minimum mandated liability insurance limits which means state laws require a specific minimum amount of liability in order to license the vehicle. 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.
Second, if you have a loan on your Chrysler Pacifica, most banks will require that you have insurance to protect their interest in the vehicle. If you do not pay your insurance premiums, the bank will be required to insure your Chrysler at a much higher rate and require you to reimburse them the higher premium.
Third, insurance protects not only your Chrysler Pacifica but also your assets. It will also reimburse you for most medical and hospital costs for not only you but also any passengers injured in an accident. Liability coverage, the one required by state law, also covers all legal expenses up to the policy limit if you are sued as the result of an accident. If your vehicle suffers damage from an accident or hail, your auto insurance policy will pay to restore your vehicle to like-new condition.
The benefits of having insurance are definitely more than the cost, particularly for liability claims. In a recent study of 1,000 drivers, the average customer is overpaying over $830 a year so compare rates once a year at a minimum to help ensure money is not being wasted.