Have you ever heard an insurance company advertise savings of hundreds of dollars when drivers switch to their company? If you called up the company to request a quote for yourself, however, you may have been sorely disappointed. That’s because insurers do not offer a one-size-fits-all package. Rather, they generate customer-specific rates based on complex formulas that weigh various components of your risk profile. Continue reading to learn more about the discrepancies in Wisconsin car insurance quotes and how you can overcome them.
Understanding Insurance Risk Bias
All insurance companies have different parameters and guidelines by which they rate customers. Some are more risk averse, while others are willing to overlook minor issues like first-time speeding tickets or a spotted credit history. That is one of the reasons why one customer might save on car insurance with one company while another could find a better rate somewhere else. Unfortunately, insurance companies are competitive and generally do not reveal the formulas behind their rate computations. That means the only way to find the lowest rates without sacrificing quality coverage is by shopping and comparing Wisconsin car insurance quotes from multiple providers.
Paying for the Shortcomings of Others
If car insurance were based on your safe driving habits alone, you might qualify for deep discounts. However, insurance claims are often filed to pay for damages caused by forces outside of your control. Your comprehensive and collision coverage typically kicks in when your car is stolen, vandalized, or damaged by a falling tree in a harsh winter storm. Whether crime-related or induced by Mother Nature, these types of events are often more common in certain geographical locations than others.
That is why quotes on car insurance can vary so dramatically between cities and zip codes. Living in an area known for frequent accidents or theft may cost you more in car insurance premiums. If you live right here in Sheboygan, the average annual car insurance rate is just $799. That could be due in part to low state average insurance rates and the fact that Sheboygan has a relatively low rate of crime and car theft as reported by Sperling’s BestPlaces study of crime rates among small metropolitan areas.
Budget Providers vs. Quality Coverage Providers
There are two types of insurance companies. The first are those who advertise rock bottom rates, ultimately slashing coverage and leaving customers exposed to risk just to save a few bucks. Then there are those that aim to take care of their customers, delivering high-quality coverage at competitive rates. Responsible drivers who are looking for quality may find that certain insurance companies provide better rates for maximum coverage, while others provide optimal rates to customers who want minimal coverage. Furthermore, insurance quotes may also vary depending on an insurer’s favoritism toward lower or higher liability, collision and comprehensive claims limits.
Shopping Around the Easy Way
If you find yourself in the market for new Wisconsin car insurance, getting quotes for coverage does not have to take you all day. Instead of wasting time hopping from website to website or calling multiple agents, consolidate your search into one easy place with the help of an independent insurance agent. An independent agent works for you – not the insurance company. The agent’s goal is to scour similar plans from multiple leading Wisconsin insurance companies to find the policy that matches your needs. For more information or to request your own free Wisconsin car insurance quotes, contact our Heinen Insurance today.