hed

How do I lower my car insurance rates

Car insurance rates are increasing for two reasons. Some insurance companies lowered rates because Covid decreased the amount of driving. Covid is over, driving has increased, more claims are occurring. Inflation is at a forty year high, an has increased the cost of repairing vehicles, paying for rental cars and medical bills.

To lower rates some people would advise you to shop around. While I am not against shopping I would advise you to know what coverages are mandatory, what coverages are optional, what discounts are available from your current company and what factors may effect your rates, like age, milage and safety features of your car.

First the mandatory coverages in Pennsylvania are: Liability coverage( damage or injury you may cause to others), Medical coverage of $5,000.00 (protecting you or your passengers for medical bills).

The minimum Liability coverage in Pa, must be 15/30/5. This means if you were involved in and accident your company would provide $15,000.00 of protection for you if one person sued you, $30,000.00 if more than one person sued you and $5,000.00 to reimburses someone for property damage you caused. While minimum coverage may save you money it is rarely advised to carry. Remember it purpose is to protect your assets from being touched when you are at fault in an automobile accident. My office recommends customers to have at least 100/300/100 and with inflation now many are going to 250/500/100.

The minimum Medical coverage in PA, is $5000.00. Depending on your personal health insurance you may need more and can purchase up to $100,000.00.

As you can see mandatory coverages are few and if you drive a vehicle of little value may be all you need. The optional coverages begin with comprehensive (damage caused to your vehicle by other than collision ) and collision ( physical damage to your vehicle cause by hitting another vehicle or stationary object). If your vehicle has a lien on it these coverages will be mandatory by the company who lent you the money for the vehicle. In my office we recommend having comprehensive and collision on any vehicle worth more than $3,000,00 dollars. We believe the cost for the coverage versus the risk of loss is reasonable. Both collision and comprehensive can be purchased with a deductible. A deductible is the amount you would pay before the insurance company makes payment. The higher deductible you choose the lower your premium.

True optional coverages are loss of income, towing and road service, death benefit, uninsured and underinsured motor vehicle coverage and in Pa extra ordinary medical coverage. My office recommends extra ordinary medical coverage for every policy.

Discounts that you may be eligible for include, telematics systems that report your driving habits, driver improvement courses for people over 55 and loyalty credits.

I'm not opposed to shopping but most of the major companies offer loyalty credits for years insured. Find out if you are getting any loyalty credits and when future credits may apply. You don't want to switch if a loyalty credit will soon be applied and your rate will be lowered.

Youthful drivers those below the age of 25 can lower their rates by having good grades, graduating from college and completing online safety programs. While age 25 is the standard age most companies treat drivers as adults. Many companies lower rates at different ages until the driver turns 25. Also discounts can apply for children away at school check with your agent.

Lastly try bundling, purchasing you car and home/renters insurance from one company will result in the lowest premium.

If anyone has a question about insurance or a topic for an article please text me at 724-222-5600.