Purchasing a reliable car is just as important as choosing an auto insurance company that is responsive and available, treats its customers right, has committed agents and is financially stable.
“The key words for auto insurance are ‘sudden’ and ‘accidental,’ said Jim Crane, a State Farm agent. It is always important to have a good deductible — a lower rate means a higher deductible.
A deductible is the amount of a covered loss that is the responsiblity of the policy holder. They are available in amounts such as $100, $250, $500 or $1000.
For example, “if you had a $500 deductible, you would be responsible for paying $500 of the covered loss,” Evans said. In the state of Louisiana, to get license plates, residents must carry a minimum of $10,000 for bodily injury liability per person, $20,000 for bodily injury per accident and $10,000 worth of property damage liability.
There are several types of coverage available. “The largest premium is always under liability because of too many lawsuits,” Crane said. Liability coverage pays for accidental bodily injury and property damage to others.
Collision covers the damage involving a two-car collision, said Jerry Evans, an Allstate agent. Comprehensive coverage pays for everything except collision — full coverage, Evans said. If a covered person is injured in a car accident, Uninsured Motorist pays for the damages done if the driver who caused the accident does not have liability.
Underinsured motorist covers the costs of damage when an accident is caused by a driver who has little liability insurance.
Additional types of coverage available include roadside assistance and rental reimbursement, Evans said. Uninsured motorist pays damages and roadside assistance pays to have your vehicle towed. If your car is stolen or is in the repair shop due to an accident, rental reimbursement will cover the cost of renting a car, usually for up to 30 days.
In a recent survey, Consumer Reports found that some drivers were paying twice as much for a policy than they would have with another insurer. Agents from Allstate, Farmers and State Farm provided information about obtaining the best auto insurance policy.
Each agent said there are many discounts available on auto insurance policies, including multiple car, accident-free, anti-theft device, defensive driving, good student, good driver and driver training.
Obtaining auto insurance varies by age and driving experience. To be insured by Allstate, the car has to be in the customer’s name and must have been licensed for at least three years, Evans said.
“Credit plays a big part in getting the best rates,” said Steve Wiley, a Farmers agent.
There are several different discounts available for customers at each agency. If a student maintains at least a “B” average, they may qualify for the Good Student Discount, Evans said. He said the Good Driver Discount is automatically applied if a customer does not have any claims or tickets. The agencies also offer a discount if a customer wishes to improve their driving skills by completing a defensive-driving course. Customers who have held a policy with Allstate for at least five years receive a discount, which varies by the type of coverage. If you own two or more vehicles and insure both of them with Farmers, you may qualify for the multi-car discount, Wylie said.
Wylie said some students at the University have a hard time obtaining auto insurance because they are not from the United States. They are charged additional premium for at least one year because the insurance companies have no way to verify their driving records. Each company has different standards for non-U.S. citizens. He said some require a customer to have lived in the states for one or two years.
Several factors can increase or reduce auto insurance rates. If a car is prone to accidents, the rate will be high, Evans said. “Higher deductibles lower your premium, but raise the amount that you will have to pay,” Crane said.
The size of an engine and type of vehicle can make the rate fluctuate, Wylie said. Sometimes the more expensive cars can be less expensive to insure than a cheaper car.
Statistically, there are some colors of cars that get in the most number of accidents, and others with the least number of accidents. “To my knowledge, the color of a car doesn’t affect insurance rates,” Wylie said.
“The older you get, the lower the risk for the company because their chance of profitability gets better, so your rate gets better,” Crane said. “Experience level is a big deal.”
Crane provided some important tips to keep a good driving record and the best auto insurance rate. “Never, under any circumstances, ride with anyone who has been drinking alcohol and always drive safely,” Crane said.