Easy Methods to Cut Costs on Hawaii Auto Insurance

Expensive auto insurance can drain your savings account and put the squeeze on your family’s finances. Comparison shopping is a great way to slash your bill and have more diposable income. You have multiple auto insurance companies to insure vehicles with, and although it’s a good thing to have a choice, having more insurance companies makes it harder to compare rates.

Consumers need to shop coverage around yearly due to the fact that insurance rates trend upward over time. Despite the fact that you may have had the best deal on your last policy other companies may now be cheaper. There is a lot of bad information regarding auto insurance online, so with this article, you’re going to get some of the best ways to put money back in your pocket.

Pricing affordable coverage is simple if you know the tricks. If you have insurance now or need a new policy, you can learn to find better prices while maintaining coverages. Hawaii drivers only need to know the best way to compare rates over the internet.

Tips to Get Lower Rates

It’s important that you understand the different types of things that come into play when calculating the price you pay for auto insurance. Knowing what determines base rates enables informed choices that can help you get lower auto insurance prices.

• Better credit scores mean better rates – Credit rating is a large factor in determining your rates. Drivers with good credit tend to file fewer claims and have better driving records than those with lower credit scores. Therefore, if your credit can use some improvement, you could save money insuring your by repairing your credit.
• Save money with special equipment – Owning a car with a theft deterrent system can save you a little every year. Theft prevention features like GM’s OnStar, tamper alarm systems and vehicle immobilizers can help prevent auto theft.
• Liability coverage protects you – Your policy’s liability coverage provides coverage in the event that you are found liable for personal injury or accident damage. It provides legal defense which can cost thousands of dollars. Liability is cheap as compared to coverage for physical damage, so do not cut corners here.
• Rate your vehicle for proper use – The more you drive in a year’s time the more you will pay for auto insurance. The majority of insurers rate vehicles based on their usage. Vehicles that are left in the garage receive lower rates than vehicles that are driven to work every day. Verify your auto insurance policy is showing the correct driver usage, because improper ratings can cost you money.

Finding Auto Insurance Deals in Hawaii

Performing a rate comparison can be exhausting if you aren’t aware of the most efficient way. You can waste a lot of time driving to insurance companies in your area, or you could save time and use online quoting to accomplish the same thing much quicker.

Many companies belong to an insurance system where insurance shoppers enter their coverage request one time, and every company can give them a price based on that data. This prevents consumers from doing form submissions for each company you want a rate for.

To submit your quote information now, click here to start a free quote.

The only downside to using this type of form is you can’t choose which insurance companies you want to price. So if you want to select from a list of companies to compare rates, we have assembled a list of companies who write auto insurance in Hawaii. Click to view list.

It’s your choice how you get your quotes, but make sure you use identical coverages and limits on every quote you get. If you are comparing different deductibles it’s not possible to make a fair comparison.

Can switching companies really save?

Consumers can’t get away from ads that promise big savings from companies such as Allstate, GEICO and Progressive. They all say the same thing that you can save if you switch your policy.

How do they all make the same claim? This is how they do it.

Insurance companies have a certain “appetite” for the driver that is profitable for them. For instance, a preferred risk might be profiled as between 25 and 40, has no prior claims, and drives less than 10,000 miles a year. A propective insured that hits that “sweet spot” receives the best rates and most likely will save when switching.

Consumers who don’t meet these standards will be charged higher prices and ends up with the driver buying from a lower-cost company. The ad wording is “customers who switch” not “everybody who quotes” save that much. That is how insurance companies can confidently make the claims of big savings.

That is why drivers must get as many quotes as possible. It’s not possible to predict which insurance companies will have the lowest rates.

Policy discounts you shouldn’t miss

Insuring your fleet can be pricey, but discounts can save money and there are some available that can drop the cost substantially. Most are applied at the time of purchase, but a few need to be asked about in order for you to get them. If you aren’t receiving every discount available, you are throwing money away.

• Memberships – Affiliation with a qualifying organization could qualify you for a break when buying auto insurance.
• Distant Student – Youth drivers who are attending college and do not have access to a covered vehicle may be able to be covered for less.
• Save with a New Car – Insuring a new car can cost up to 25% less due to better safety requirements for new cars.
• Student Driver Training – Cut your cost by having your teen driver successfully complete driver’s ed class if it’s offered in school.
• Accident Free – Claim-free drivers pay much less compared to drivers who are more careless.
• Passive Restraints – Factory air bags can receive discounts of 20% or more.
• Multiple Vehicles – Insuring multiple vehicles on the same auto insurance policy may reduce the rate for each vehicle.

It’s important to note that some of the credits will not apply to the entire policy premium. A few only apply to the cost of specific coverages such as collision or personal injury protection. Just because it seems like adding up those discounts means a free policy, companies wouldn’t make money that way. Any qualifying discounts will cut your overall premium however.

To see a list of providers with the best auto insurance discounts in Hawaii, click this link.

But don’t I need an insurance agent?

Certain consumers prefer to buy from a licensed agent and that is a personal choice. Educated insurance agents can point out coverage gaps and give you peace of mind. One of the great benefits of getting online price quotes is that you can obtain the lowest rates but still work with a licensed agent. Buying from local businesses is important especially if you live in a smaller city or town.

After completing this simple form, your insurance coverage information is sent to insurance agents who will battle for your business. You don’t have to leave your computer since price quotes are sent to the email address you provide. Now that’s easy!

Not all auto insurance agents are the same

When researching local Hawaii agents, there are a couple of types of agencies to choose from. Agencies in Hawaii are categorized either captive or independent (non-captive). Both do a good job, but it’s worth learning how they are different because it can impact your selection of an agent.

Independent Insurance Agents

Independent insurance agents are not employed by any specific company so they have the ability to put coverage with any number of different companies and possibly get better coverage at lower prices. To transfer your coverage to a different company, they simply move the coverage in-house and that require little work on your part.

When shopping rates, we recommend you include at least one independent agent to have the most options to choose from.

Captive Agents

Captive agents write business for a single company such as Allstate, AAA, Liberty Mutual and State Farm. Captives cannot give you multiple price quotes so it’s a take it or leave it situation. These agents receive extensive training on their products and sales techniques which helps them sell insurance even at higher premiums.

To view a complete directory of Hawaii insurance agents, click here.

Choosing an auto insurance agent shouldn’t rely on just the price. Any agent should have no problem answering these questions:

• How many years of experience in personal lines insurance coverages do they have?
• Are claims handled at the agent’s location?
• Do they have advanced training designations such as CPCU, AAI, AIC, or CIC?
• What insurance companies do they recommend if they are an independent agent?
• Is the agency involved in supporting local community causes?

Upon getting reasonable responses to all your questions in addition to an acceptable price estimate, most likely you have located an insurance agency that is a good match to insure your vehicles.

Additional auto insurance information is available on the website for the Hawaii Department of Commerce and Consumer Affairs located here. Consumers can read enforcement actions against agents and companies, download brochures, and discover disciplinary actions.

More effort can pay off

When buying insurance coverage, do not reduce needed coverages to save money. In too many instances, an insured cut liability limits or collision coverage to discover at claim time that a couple dollars of savings turned into a financial nightmare. The aim is to purchase plenty of coverage for the lowest price.

The cheapest auto insurance is available from both online companies and with local Hawaii insurance agents, and you should be comparing both so you have a total pricing picture. Some companies do not offer online price quotes and usually these small insurance companies provide coverage only through local independent agents.