It’s safe to assume that auto insurance companies don’t want you to look for cheaper rates. Consumers who get price quotes annually will presumably switch companies because there are good odds of finding discount prices. Surprisingly, a recent survey revealed that people who regularly compared price quotes saved about $850 each year as compared to drivers who never compared rates.
If saving money on car insurance is your ultimate goal, then knowing how to find and compare coverage rates can help you be more efficient.
The best way we recommend to find the cheapest price for Ford Fiesta insurance in Louisville is to do a yearly price comparison from insurance carriers in Kentucky.
Step 1: Take a few minutes and learn about coverages and the measures you can take to prevent expensive coverage. Many policy risk factors that cause rate increases like inattentive driving and an unacceptable credit rating can be controlled by making minor changes in your lifestyle.
Step 2: Obtain price quotes from direct carriers, independent agents, and exclusive agents. Exclusive and direct companies can only give prices from one company like Progressive or Farmers Insurance, while agents who are independent can quote prices for a wide range of companies.
Step 3: Compare the new rate quotes to your current policy premium and determine if cheaper Fiesta coverage is available. If you find a better price and decide to switch, make sure the effective date of the new policy is the same as the expiration date of the old one.
Step 4: Provide notification to your current agent or company of your decision to cancel your existing policy and submit a signed application and payment to your new agent or company. Don’t forget to safely store the certificate verifying coverage with your registration paperwork.
One piece of advice is to use similar coverage information on every quote and to quote with as many companies as possible. Doing this guarantees a fair rate comparison and a good representation of prices.
Insurance coverages and their meanings
Having a good grasp of your policy can help you determine the right coverages and proper limits and deductibles. The terms used in a policy can be impossible to understand and nobody wants to actually read their policy.
Coverage for liability
Liability insurance protects you from damages or injuries you inflict on other people or property in an accident. It protects you against claims from other people. Liability doesn’t cover damage to your own property or vehicle.
Liability coverage has three limits: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. Your policy might show values of 25/50/10 which stand for $25,000 bodily injury coverage, a total of $50,000 of bodily injury coverage per accident, and a limit of $10,000 paid for damaged property.
Liability insurance covers claims such as repair bills for other people’s vehicles, pain and suffering, repair costs for stationary objects, funeral expenses and emergency aid. How much liability should you purchase? That is a decision to put some thought into, but it’s cheap coverage so purchase as high a limit as you can afford. Kentucky state law requires minimum liability limits of 25/50/10 but you should consider buying more liability than the minimum.
The next chart shows why low liability limits may not be enough.
Comprehensive insurance
Comprehensive insurance will pay to fix damage OTHER than collision with another vehicle or object. You first must pay your deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage protects against things such as hitting a bird, damage from a tornado or hurricane and vandalism. The most you can receive from a comprehensive claim is the cash value of the vehicle, so if it’s not worth much more than your deductible consider dropping full coverage.
Med pay and Personal Injury Protection (PIP)
Personal Injury Protection (PIP) and medical payments coverage kick in for immediate expenses like doctor visits, rehabilitation expenses and funeral costs. They are often used in conjunction with a health insurance policy or if you lack health insurance entirely. Coverage applies to you and your occupants in addition to getting struck while a pedestrian. PIP coverage is not available in all states but can be used in place of medical payments coverage
Uninsured/Underinsured Motorist (UM/UIM)
Uninsured or Underinsured Motorist coverage gives you protection from other drivers when they do not carry enough liability coverage. Covered losses include injuries to you and your family as well as your vehicle’s damage.
Since a lot of drivers only carry the minimum required liability limits (which is 25/50/10), their liability coverage can quickly be exhausted. That’s why carrying high Uninsured/Underinsured Motorist coverage is a good idea.
Auto collision coverage
Collision coverage will pay to fix damage to your Fiesta resulting from a collision with an object or car. You first must pay a deductible then the remaining damage will be paid by your insurance company.
Collision insurance covers things like sustaining damage from a pot hole, colliding with another moving vehicle, colliding with a tree and damaging your car on a curb. Collision is rather expensive coverage, so analyze the benefit of dropping coverage from vehicles that are 8 years or older. Another option is to bump up the deductible on your Fiesta to save money on collision insurance.
Cheaper car insurance is a realistic goal
When shopping online for car insurance, it’s very important that you do not skimp on coverage in order to save money. In many instances, consumers will sacrifice full coverage and learned later that a couple dollars of savings turned into a financial nightmare. Your goal should be to buy a smart amount of coverage for the lowest price but still have enough coverage for asset protection.
Drivers who switch companies do it for a variety of reasons including lack of trust in their agent, high rates after DUI convictions, policy non-renewal and extreme rates for teen drivers. It doesn’t matter why you want to switch switching companies is pretty easy and you might even save some money in the process.
In this article, we covered a lot of ways to shop for Ford Fiesta insurance online. The most important thing to understand is the more quotes you get, the better your chances of lowering your auto insurance rates. You may even find the lowest priced car insurance comes from some of the lesser-known companies.
To read more, link through to the following helpful articles:
- Understanding Rental Car Insurance (Insurance Information Institute)
- Who Has the Cheapest Louisville Car Insurance Quotes for Good Drivers? (FAQ)
- Who Has Affordable Louisville Auto Insurance Quotes for Inexperienced Drivers? (FAQ)
- Bodily Injury Coverage (Liberty Mutual)
- Air Bags: Potential Dangers to Your Children (Insurance Information Institute)
- Understanding your Policy (NAIC.org)
- Credit Impacts Car Insurance Rates (State Farm)