Drivers switch their insurance for a variety of reasons (not on price alone). You may not like your agent's service, have difficulty making payments to the company, have a renewal coming up, have a claims dispute, had your rates raised and other differences of opinion between you and your carrier. Remember that saving on auto insurance is a process and does involve some homework, but the rewards can be substantial. Even if you decide to keep your current carrier, peace of mind, knowing that you have a competitive policy with a carrier that will not fight your claim is valuable. To avoid problems, the steps to shopping for auto insurance below should always be followed and in order:
Personal story: I canceled the theft portion of my auto insurance policy since I had installed a kill switch on my truck. Several weekends later, I forgot to flick the kill switch, and the truck was stolen and dismantled. Keep your theft coverage, unless you have an older beater.
When switching car insurance companies, make sure they are able to sell you the policy online and are not just giving you an "estimate." Get real time, binding quotes. You can also call 1-888-700-2268 for rates. Just be truthful about your driving record, the mileage on your car, etc. so they won't have to do a "rate up" later.
Your insurance policy has the amount of liability coverage you have as a series of three numbers, called split limits. Suppose your contract coverage reads 20,000/40,000/10,000. In this example, $20,000 is the maximum the insurance company will pay for bodily injuries to any one person in the accident. The maximum amount paid for all bodily injuries, no matter how many people are hurt in the accident, is $40,000. The maximum amount paid for damage to someone else's property (Property Damage) in the accident is $10,000. Your Bodily Injury and Property Damage Liability may also be shown as a single limit, e.g., $70,000 Combined Single Limit (CSL) or double limits 20,000/40,000.
Bodily Injury: Covers people listed on your policy who has an at fault accident which causes an injury to either the occupants of another car or a pedestrian. the Bodily Injury liability coverage part of your policy will pay for the medical bills, lost wages, expenses, pain and suffering, etc. up to the policy limits.
Property Damage: Covers damage to another person's property as a result of an accident in which you or someone else covered under your policy is at fault up to the policy limit. Examples are other vehicles, landscaping, fences, traffic signs, etc.
Medical Payments: Typical coverage will pay for the costs of necessary medical expenses, physician, hospital, and some rehabilitation and funeral costs for any persons in an accident up to your policy limit, regardless of who is at fault. Typically, these medical expenses must be incurred within three years of the accident's occurrence. Coverage is usually cheap with limits between $1,000 and $100,000. You may not need this is you have comprehensive health and disability insurance.
Personal Injury Protection (PIP): Coverage is a form of no-fault insurance required in states with no-fault laws. This coverage is a broader form of medical payments insurance. It pays for medical care, lost wages and replacement services for the injured party (for example, paying for a babysitter for children while a mother is hospitalized). It pays regardless of who is at fault in an accident.
Uninsured Motorist Bodily Injury: Covers you for bodily injury that you and your passengers sustain as a result of a negligent uninsured or hit and run driver. You'll need a police report stating that the other party is uninsured and at fault.
Uninsured Motorist Property Damage: Covers you for property damage to your vehicle as a result of an accident with an uninsured and at fault driver. Like uninsured motorist bodily injury, you'll need a police report stating that the other party is uninsured and at fault.
