Paying Too Much for Auto Insurance in Springfield, VT? Here’s How to Save!

Nobody I know looks forward to paying for auto insurance, particularly when the cost is too high. Many insurance companies compete to insure your vehicles, and it can be difficult to compare rates to find the absolute lowest cost out there.

Factors that affect insurance rates

An important part of buying insurance is that you know the different types of things that go into determining the price you pay for auto insurance. Having a good understanding of what influences your rates empowers consumers to make smart changes that can help you get big savings.

Listed below are some of the items used by your company to calculate your rates.

• Don’t cancel a policy without a new one in place – Having an insurance coverage lapse is a sure-fire way to bump up your auto insurance costs. And not only will your rates increase, getting caught without coverage can result in a license revocation or jail time.
• Lower deductibles cost more – Coverage for physical damage, termed comprehensive and collision coverage on your policy, protects your car from damage. Some instances where coverage would apply would be a windshield shattered by a rock, damage caused by hail, and burglary. Physical damage deductibles are the amount of money you are willing to pay out-of-pocket if you file a covered claim. The higher the amount you are required to pay out-of-pocket, the less your company will charge you for insurance.
• How many coverages with the same company – Many insurance companies will award you with lower prices to insureds who consolidate policies with them. It’s known as a multi-policy discount. Discounts can be 10 percent or more. Even with this discount, you may still want to comparison shop to make sure you are getting the best deal. You may still find better rates by splitting coverages up.
• Car features impact rates – Purchasing a vehicle that has an advanced theft prevention system can save you a little every year. Anti-theft features such as GM’s OnStar, tamper alarm systems and vehicle immobilizers all aid in stopping your car from being stolen.
• Where you live – Residing in a small town can be a good thing when talking about auto insurance. Fewer people means a lower chance of having an accident. City drivers have much more traffic to deal with and much longer commute distances. More time commuting translates into higher accident risk.

Auto Insurance Comparison Rates in Springfield, VT

Reducing your insurance rates is not rocket science. Drivers just need to spend a few minutes on the computer getting comparison quotes from different insurance companies. This can be accomplished using a couple different methods.

1. The best way to find low rates is a comparison rater form (click to open form in new window). This form keeps you from doing boring form submissions to each individual auto insurance company. One form gets you coverage quotes from many national carriers.
2. A different way to shop for auto insurance online consists of visiting the website for every company you want to comare to request a price quote. For examples sake, we’ll assume you want to compare rates from GEICO, Farmers and Travelers. You would have to visit each site to input your insurance information, which is why most consumers use the first method. For a list of links to companies insuring cars in Springfield, click here.

It’s your choice how you get your quotes, but be sure to compare exactly the same coverages and limits for each price quote. If you enter different values for each quote then you won’t be able to decipher which rate is best in Springfield.

Is there truth in advertising?

Vermont drivers can’t get away from ads for the lowest price auto insurance from the likes of Progressive, Allstate and GEICO. They all seem to have a common claim that you can save if you move your coverage to them.

How do they all say the same thing?

Different companies have a certain “appetite” for the driver that earns them a profit. For example, a profitable customer could possibly be over the age of 40, has no tickets, and drives less than 10,000 miles a year. A propective insured that hits that “sweet spot” will qualify for the lowest rates and as a result will probably cut their rates substantially.

Drivers who fall outside the requirements will be charged higher premiums and ends up with the driver buying from a lower-cost company. The ads say “customers who switch” but not “drivers who get quotes” save that much money. That’s the way insurance companies can claim big savings.

That is why it’s extremely important to get a wide range of price quotes. Because you never know which auto insurance company will have the lowest rates.

Do you qualify for discounts?

Insuring your fleet can be pricey, but companies offer discounts to reduce the price significantly. Most are applied at quote time, but some must be inquired about in order for you to get them. If you’re not getting every credit you deserve, you’re just leaving money on the table.

• Discount for New Cars – Buying coverage on a new vehicle can save up to 30% due to better safety requirements for new cars.
• Federal Employees – Employees or retirees of the government may qualify you for a discount with select insurance companies.
• Low Mileage – Keeping the miles down could qualify for lower rates on the low mileage vehicles.
• Good Student Discount – A discount for being a good student can save 20 to 25%. The discount lasts up until you turn 25.
• Accident Free – Claim-free drivers can save substantially when compared to frequent claim filers.
• Accident Forgiveness – Some insurance companies permit an accident without raising rates as long as you don’t have any claims prior to the accident.
• Passive Restraint Discount – Cars that have air bags and/or automatic seat belt systems can qualify for discounts up to 30%.

A little note about advertised discounts, most discounts do not apply to the entire policy premium. A few only apply to specific coverage prices like liability and collision coverage. Even though it may seem like all those discounts means the company will pay you, you’re out of luck. Any qualifying discounts will bring down the amount you have to pay.

To choose companies who offer auto insurance discounts in Vermont, click this link.

Don’t assume everyone needs the same coverage

When buying coverage, there is no “perfect” insurance plan. Everyone’s situation is unique so this has to be addressed. Here are some questions about coverages that may help you determine whether you would benefit from an agent’s advice.

• Who is covered by my policy?
• Do I need roadside assistance coverage?
• Is business equipment covered while in my vehicle?
• Why am I be forced to buy a membership to get insurance from some companies?
• Will I be non-renewed for getting a DUI or other conviction?
• What if I total my vehicle and owe more than it’s worth?
• Are my friends covered when driving my vehicle?

If you’re not sure about those questions but you know they apply to you, then you may want to think about talking to an agent. To find an agent in your area, fill out this quick form or click here for a list of auto insurance companies in your area. It only takes a few minutes and can provide invaluable advice.

More information is located on the website for the Vermont Department of Financial Regulation through this link. Vermont consumers can find a variety of consumer forms, read enforcement actions against agents and companies, and report car insurance fraud.

Buy online or local, you save

When you buy insurance online, never skimp on critical coverages to save a buck or two. There are a lot of situations where someone sacrificed comprehensive coverage or liability limits to discover at claim time they didn’t have enough coverage. Your goal should be to purchase a proper amount of coverage at the best price, not the least amount of coverage.

Cheap auto insurance is definitely available from both online companies and with local Springfield insurance agents, and you should be comparing both to have the best chance of lowering rates. A few companies do not offer online price quotes and many times these regional insurance providers only sell through independent insurance agents.