Are you sick and tired of paying out the nose to insure your Chrysler every month? Your situation is no different than many other consumers.
Lots of auto insurance companies contend for your business, and because of this it can be hard to compare insurance companies and get the definite lowest rate possible.
You need to shop coverage around occasionally because insurance rates trend upward over time. Just because you had the lowest rates on Neon insurance a couple years back you can probably find a lower rate today. Starting now, ignore everything you know about car insurance because you’re about to learn the quickest way to save on car insurance.
If you currently have a car insurance policy, you will be able to save some money using this strategy. Choosing the best insurance company for you is quite easy. But drivers need to have an understanding of the way insurance companies determine prices and use this information to your advantage.
These 5 discounts can lower your rates
Auto insurance companies don’t always list all available discounts in an easy-to-find place, so we researched some of the best known and the more hidden car insurance savings.
- College Student – Children who attend school more than 100 miles from home and do not have access to a covered vehicle can receive lower rates.
- No Claims – Claim-free drivers can save substantially when compared to accident-prone drivers.
- Seat Belt Usage – Using a seat belt and requiring all passengers to wear their seat belts could cut 10% or more on the medical payments or PIP coverage costs.
- Safe Drivers – Safe drivers may save up to 50% more on Neon insurance than their less cautious counterparts.
- Defensive Driver – Taking a defensive driving course can save you 5% or more depending on where you live.
A little note about advertised discounts, many deductions do not apply to all coverage premiums. Most only cut the cost of specific coverages such as collision or personal injury protection. So when the math indicates you can get free auto insurance, companies wouldn’t make money that way.
For a list of providers offering car insurance discounts, click here to view.
Different people need different coverages
When it comes to buying the best car insurance coverage, there really is no best way to insure your cars. Every situation is different so your insurance needs to address that. Here are some questions about coverages that might help in determining if you might need professional guidance.
- What should my uninsured motorist coverage limits be in my state?
- What companies insure drivers after a DUI or DWI?
- Should I buy more coverage than the required minimum liability coverage?
- Which companies will insure high-risk drivers?
- Am I getting all the discounts available?
- What is high-risk coverage and where do I buy it?
If you can’t answer these questions but one or more may apply to you, you may need to chat with an agent. To find lower rates from a local agent, simply complete this short form or click here for a list of car insurance companies in your area.
Car insurance ads bend the truth
Companies like Allstate, GEICO and Progressive continually stream television and radio advertisements. All the ads make an identical promise that you can save after switching to them. But how can every company make almost identical claims?
Insurance companies have a preferred profile for the type of driver that earns them a profit. For example, a driver they prefer might be profiled as a mature driver, owns a home, and has a high credit rating. A driver who meets those qualifications will get the preferred rates and therefore will save a lot of money.
Potential customers who don’t measure up to the “perfect” profile will be quoted more money and this can result in business going elsewhere. The ad wording is “customers that switch” not “everyone that quotes” save money. This is how companies can truthfully state the savings. This emphasizes why drivers should get a wide range of price quotes. You cannot predict which company will give you the biggest savings.
Detailed coverages of your car insurance policy
Understanding the coverages of car insurance can help you determine which coverages you need and the correct deductibles and limits. The coverage terms in a policy can be confusing and even agents have difficulty translating policy wording. Shown next are the normal coverages offered by car insurance companies.
Medical payments coverage and PIP – Med pay and PIP coverage reimburse you for bills for things like X-ray expenses, chiropractic care, surgery, hospital visits and dental work. They can be used to fill the gap from your health insurance plan or if you are not covered by health insurance. Medical payments and PIP cover you and your occupants and also covers if you are hit as a while walking down the street. Personal injury protection coverage is only offered in select states and may carry a deductible
Auto liability insurance – Liability coverage can cover damage or injury you incur to other people or property by causing an accident. Split limit liability has three limits of coverage: bodily injury per person, bodily injury per accident and property damage. As an example, you may have policy limits of 25/50/25 which stand for a $25,000 limit per person for injuries, a per accident bodily injury limit of $50,000, and a limit of $25,000 paid for damaged property.
Liability can pay for claims like attorney fees, medical services, repair bills for other people’s vehicles, repair costs for stationary objects and pain and suffering. How much liability should you purchase? That is a decision to put some thought into, but it’s cheap coverage so purchase higher limits if possible.
Collision coverage – Collision insurance covers damage to your Neon resulting from a collision with an object or car. A deductible applies then the remaining damage will be paid by your insurance company.
Collision can pay for things such as colliding with a tree, crashing into a building, scraping a guard rail, rolling your car and colliding with another moving vehicle. This coverage can be expensive, so you might think about dropping it from older vehicles. It’s also possible to increase the deductible to get cheaper collision coverage.
Comprehensive coverage – Comprehensive insurance covers damage caused by mother nature, theft, vandalism and other events. You first have to pay a deductible and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive can pay for claims like a tree branch falling on your vehicle, hail damage and damage from a tornado or hurricane. The most a car insurance company will pay at claim time is the actual cash value, so if the vehicle’s value is low it’s not worth carrying full coverage.
Uninsured/Underinsured Motorist coverage – This coverage provides protection when other motorists either have no liability insurance or not enough. This coverage pays for hospital bills for your injuries and also any damage incurred to your Chrysler Neon.
Due to the fact that many drivers carry very low liability coverage limits, it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage is very important.
The best insurance company isn’t always the cheapest
As you go through the steps to switch your coverage, it’s not a good idea to skimp on critical coverages to save a buck or two. In too many instances, someone sacrificed full coverage and discovered at claim time that their decision to reduce coverage ended up costing them more. The aim is to purchase plenty of coverage at a price you can afford while not skimping on critical coverages.
We’ve covered a lot of ways to lower your Chrysler Neon insurance rates. The key thing to remember is the more rate quotes you have, the better your chances of lowering your rates. You may be surprised to find that the most savings is with an unexpected company. These companies can often provide lower rates in certain areas than the large multi-state companies such as Allstate, GEICO and Progressive.
