Cheap Online Car Insurance Quotes

Getting Cheap Online Car Insurance Quotes is easy if you understand how the insurance industry works. If you do not know how the industry works you are about to learn. If you're looking for ways to save money, shopping for car insurance is a great start. Most people that know how to shop can save anywhere from $30 to $100 a month. In this article I will explain how the insurance industry quotes, and how you can use it to get Cheap Online Car Insurance Quotes.

The traditional way of shopping for insurance is to get the phone book and start calling agents and getting quotes. When you call in for a quote the agent may ask "how much are you currently paying?" Do not tell the agent how much you are paying. For example: If you say you are paying $80 a month for auto insurance, the agent may run a quote and have the rate come back at $43 a month. But the agent does not want to leave money on the table so he may remove discounts and increase your coverage. By doing this the rate is now $69 a month, so the agent gets you as a client and you think you are getting a great deal. But in reality you could have saved $37 a month, so never tell the agent how much you are paying.

So why would the agent not give you the best deal? Agents are paid a percentage of the term premium. Most agent get 10% of the term premium, let's look at an example.

If you pay $43 a month for auto insurance, on a six month term the total premium is $258 every six months. The agent would get 10% of the term premium so he would earn $25.80 every six months on your policy. But if you took the $69 a month policy not knowing of the cheaper rate, that is $414 every six months. The agent would get $41.40 in commission, which is the reason the agent will not sale you the lowest premium if he does not have to. The agent earns $15.60 more just by knowing how much you currently pay for car insurance.

Now if you are more comfortable on the internet and decide to get quotes from national insurance company's sites you may still get burned. These national companies will quote you really cheap rates in hopes of getting you to go see one of their local agents. Then once you're in the agent's office they may say well the online rate assumed many variable and discounts you do not qualify for, so out of frustration you decide to take the policy just to end the process. So don't believe the national companies sites if the rate is just to good to be true. A side note is all agents hate the companies internet quotes they are never close.

So the question remains how to get Cheap Online Car Insurance Quotes. You have to go through a service that make agents compete against one another. The way the process works is you fill out a form with as much information on what type of insurance coverage you are looking for. The form takes about five minutes to complete. The form is submitted to multiple agents, all from various companies. Each agent that receives the form knows they are competing against other agents and will give you their lowest rate possible. You should expect to get all the quotes back within 24 hours, and don't be surprised if somebody cuts your rate in half.

So where can you get agents fighting for your business?

www.JohnsonCityQuotes.com

As a former agent I started a site that helps people understand how the insurance world works. Everyone should be able to obtain the lowest insurance rate possible, especially now with everything costing so much. There is no reason everyone can not find a lower insurance rate with agents competing against each other. Stop by my site to get a local quote, ask a question, or read more articles. Most of all, be sure to spend five minutes to get your quote and put some money back in your pocket.

www.JohnsonCityQuotes.com

Let's take a look at "what does my car insurance cover?" To most people car insurance is Greek; they either know that they have full coverage or liability. Some know that they have a 500 deductible, but all in all only 5% can explain their insurance coverage. We have an example that we will explain line by line.

BODILY INJURY/PROPERTY DAMAGE 50/100/50
UNINSURED MOTIRIST BODILY INJURY 50/100
UNINSURED MOTORIST Property damage 50/200
MEDICAL COVERAGE 5,000
COMPREHENSIVE 250
COLLISION 500
TOWING YES
RENTAL CAR YES

BODILY INJURY/PROPERTY DAMAGE 50/100/50:
This is the liability you are insured for. The first number 50 stands for 50,000; this is how much is paid to bodily injuries to others that you have injured. This is per person; if their injuries exceed 50,000 then you are responsible for the rest. The 100 stands for 100,000 this is the total amount paid for all injuries total. So let's say you hit a family of 4, each member suffers 30,000 in injuries for a total of 120,000. If you had the policy above 100,000 would be covered, but you would be responsible for the other 20,000. The last 50 also represents 50,000 but this applies to property damage. So any vehicle you damage with you car is covered up to 50,000. Let's hope you do not hit a new Mercedes.

UNINSURED MOTIRIST BODILY INJURY 50/100:
Uninsured motorist coverage protects you in case you are hit by a driver who has no insurance, or does not have enough coverage to cover your injuries. In the example above if you were hit by a driver who's coverage's were 25/50/25 (state minimums) and your bodily injuries were 35,000, then their insurance would pay 25,000 and your uninsured coverage would cover the remaining 10,000. The 50/100 represents 50,000 per person and 100,000 per total accident. This coverage is vital to you being covered and it only cost a couple buck a month. Always make sure you liability limits match your uninsured limits. Some agents lower these limits and the clients get burned.

UNINSURED MOTORIST Property damage 50/200:
This coverage works the same way as the uninsured motorist bodily injury except it covers your vehicle. The 50 equals 50,000 and is the amount your insurance will pay to repair your vehicle if the at fault party has no insurance, or their limits are to low. The 200 stands for two hundred dollars, if you have to file an uninsured property claim you have to pay a 200 deductible. Once your insurance company gets your vehicle repaired they then subrogate against the at fault party. Subrogate means that your insurance company goes after the at fault party to collect the money they paid out and your deductible.

MEDICAL COVERAGE 5,000:
This coverage is design to cover you for your bodily injuries if you are at fault, but if you have major medical insurance it will over ride and you will not need this coverage. This coverage will also apply to others in your vehicle that are injured due to you being at fault. This is an optional coverage, but if you choose to keep it the cost are usually around 20 a year.

So far we have covered the liability, uninsured motorist, and medical coverage these are the basic coverage's that make up a LIABILITY policy. A liability policy covers other property and injury due to your negligence. It does not cover your vehicle that is where your deductibles come into play. Let's look at the comprehensive and collision.

COMPREHENSIVE 250:
The 250 is your deductible, the insurance company will pay the total cost to repair your vehicle minus your deductible. Comprehensive covers your vehicle for acts that are out of your control. Example would be falling objects, theft, deer, and any acts of god. A claim filed under comprehensive does not cause your rate to increase, it is considered no fault. Usually this coverage is very inexpensive and you can carry a lower deductible than collision.

COLISSION 500:
The 500 is your deductible, this coverage works the same way as comprehensive except this covers your vehicle due to an accident being your fault. So if you hit someone else, or run off the road and damage your vehicle the insurance company will fix your car minus your deductible. Now, filing a collision claim does count against you and can make your rate go up.

TOWING / RENTAL CAR:
These options are self explanatory these are additional options you can add or remove. They usually cost about 20 a year. Also if someone else hits you and does not have rental then their insurance will not pay for you to have it. So it is safe to carry in case someone hit you and you need a rental.

I tried to make this as brief but informative as possible, readers who like this article also read "Need A Insurance Quote" which you can find at our site. We strive to help people find the right coverage, at the lowest rate, from local agents. Compare rates at johnsoncityquotes.com, get multiple quotes from one form.