Scraping up a payment for overpriced BMW ActiveHybrid5 insurance can overdraw your bank account and force you to prioritize other expenses. Comparing price quotes is a great way to help make ends meet. Having so many choices of insurance companies, it can be challenging to pick the cheapest insurance company.
BMW ActiveHybrid5 rate determination is complex
Consumers need to have an understanding of the different types of things that play a part in calculating auto insurance rates. Understanding what determines base rates enables informed choices that may reward you with big savings.
Shown below are a partial list of the pieces auto insurance companies consider when setting rates.
- More than one policy can earn a discount – Most companies give discounts to policyholders who buy several policies from them, otherwise known as a multi-policy discount. Even with this discount, you may still want to compare other company rates to make sure you are getting the best deal. You may still be able to find better rates by splitting coverages up.
- An active claims history can cost you – Companies provide lower rates to insureds who do not file claims often. If you file claims often, you can definitely plan on higher rates. Auto insurance is intended to be relied upon for the large, substantial claims.
- Save money with special equipment – Choosing a vehicle that has an advanced theft prevention system can help bring down rates. Theft prevention features such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can thwart your car from being stolen.
- How your age affects price – Youthful drivers have a tendency to be less responsible when driving so auto insurance rates are higher. Parents adding a teen driver to your policy can be quite pricey. More mature drivers tend to be more responsible, file fewer claims and receive fewer citations.
- Safer cars are cheaper to insure – Cars with high safety ratings tend to have better insurance rates. Safer cars protect occupants better and lower injury rates means lower claim amounts and lower rates for you. If your BMW ActiveHybrid5 scored better than four stars on Safercar.gov it may be receiving lower rates.
Lower rates by qualifying for discounts
Auto insurance companies don’t always list all their discounts in an easy-to-find place, so we researched both the well known and the more hidden discounts you could be receiving. If they aren’t giving you every credit you deserve, you’re paying more than you need to.
- Defensive Driver – Completing a course teaching defensive driving skills could cut 5% off your bill if your company offers it.
- Braking Control Discount – Cars that have steering control and anti-lock brakes can avoid accidents and earn discounts up to 10%.
- Discount for Good Grades – A discount for being a good student can be rewarded with saving of up to 25%. The discount lasts well after school through age 25.
- More Vehicles More Savings – Buying insurance for multiple cars or trucks on one policy qualifies for this discount.
- Federal Government Employee – Employees or retirees of the government may qualify you for a discount on ActiveHybrid5 coverage with select insurance companies.
- Air Bag Discount – Vehicles equipped with air bags and/or automatic seat belt systems can qualify for discounts of up to 25% or more.
- Life Insurance – Larger companies have lower rates if you buy a life insurance policy as well.
- Fewer Miles Equal More Savings – Keeping the miles down on your BMW could qualify for lower rates on the low mileage vehicles.
- Anti-theft System – Cars that have factory anti-theft systems prevent vehicle theft and earn discounts up to 10%.
It’s important to note that most discount credits are not given to your bottom line cost. Most only apply to the price of certain insurance coverages like collision or personal injury protection. Just because it seems like having all the discounts means you get insurance for free, you’re out of luck.
To see a list of insurers with discount auto insurance rates, click this link.
Can’t I compare rates from local agents?
Certain consumers would rather get advice from a local agent and that is a personal choice. Licensed agents can answer important questions and give you peace of mind. One of the best bonuses of comparing insurance prices online is you can get the lowest rates and still choose a local agent.
After filling out this form (opens in new window), the coverage information is transmitted to local insurance agents who will give you bids to get your business. You never need to leave your computer since price quotes are sent to your email. How’s that for easy!
Choosing a company should depend on more than just a low price. Agents should be asked these questions:
- Do they make recommendations based only on price?
- Will vehicle repairs be made with aftermarket parts or OEM replacement parts?
- If they are an independent agency, which companies do they recommend?
- Can they give you a list of client referrals?
- How many years of experience in personal lines insurance coverages do they have?
- How are claims handled?
Compare rates from both independent and captive car insurance agents
When researching a good insurance agent, there are two types of agencies to choose from. Insurance agencies are categorized either captive or independent (non-captive). While both can insure your vehicles, but it’s good to learn the differences since it can impact the type of agent you choose
Captive Agents
Captive agencies can only place business with one company like State Farm, AAA and Liberty Mutual. They are unable to give you multiple price quotes so always compare other rates. Captives are usually quite knowledgeable on their products and sales techniques which can be an advantage.
Independent Agencies or Brokers
Independent insurance agents do not work for one specific company so they can insure your vehicles with multiple insurance companies enabling the ability to shop coverage around. If your agent finds better pricing, your agent can switch companies and you don’t have to find a new agent.
When shopping rates, you should always get quotes from at a minimum one independent agency to ensure the widest selection of prices.
For a full directory of agencies, click here.
Upon receiving positive feedback to all your questions and an affordable coverage quote, you may have just found an auto insurance agent that is a good match to properly insure your vehicles.
Beware of misleading auto insurance ads
Drivers get pounded daily by advertisements for car insurance savings from companies such as State Farm, Allstate and GEICO. All the ads make an identical promise about savings if you switch your policy.
How do they all say the same thing? It’s all in the numbers.
All the different companies can use profiling for the type of customer that earns them a profit. An example of a profitable customer might be between the ages of 30 and 50, has no driving citations, and chooses high deductibles. A customer who meets those qualifications will get very good rates and most likely will save quite a bit of money when switching.
Drivers who don’t meet the “perfect” profile will have to pay more money and ends up with business not being written. The ads state “drivers who switch” but not “drivers who get quotes” save that much. That’s the way insurance companies can confidently state the savings. Because of the profiling, it is so important to quote coverage with many companies. You cannot predict which insurance companies will provide you with the cheapest rates.
When should I talk to an agent?
When choosing proper insurance coverage for your personal vehicles, there isn’t really a “perfect” insurance plan. Everyone’s situation is a little different so your insurance needs to address that. For example, these questions might point out if your situation may require specific advice.
- Should I rate my BMW ActiveHybrid5 as pleasure use or commute?
- Are split liability limits better than a combined single limit?
- I have good health insurance, so how much medical payments coverage do I need?
- How many claims can I have before being cancelled?
- Do I need added coverage for expensive stereo equipment?
- Am I covered if I drive in a foreign country?
- Does my policy pay for OEM or aftermarket parts?
If you’re not sure about those questions but you think they might apply to your situation, you may need to chat with a licensed agent. To find lower rates from a local agent, fill out this quick form or you can also visit this page to select a carrier It is quick, free and can provide invaluable advice.
Best coverage at the best price
As you go through the steps to switch your coverage, it’s very important that you do not reduce coverage to reduce premium. In many instances, drivers have reduced collision coverage and learned later that the savings was not a smart move. The proper strategy is to purchase a proper amount of coverage for the lowest price while still protecting your assets.
Affordable BMW ActiveHybrid5 insurance can be purchased both online and also from your neighborhood agents, and you need to comparison shop both so you have a total pricing picture. There are still a few companies who may not provide online quoting and many times these small insurance companies only sell through independent insurance agents.
