Do you think that your current Connecticut car insurance policy is working in your favor? Perhaps you are quite content with your current premiums. The thing is, you shouldn’t just be okay with your premiums. You need to be happy! You need to be overjoyed. The problem with CT is that the many wealthy people living in the state have forced the average cost of premiums here to be about 16% above the average in the USA.
Does this mean you have to settle down and play high rates on your policy? Of course not! If you can do a little research into the top companies and policies in CT, you have a good chance of saving a couple hundred dollars a year on your premium payments. We recommend checking out our quotes tool: Finding cheap car insurance near me.
- How Much Can You Save on Minimum Coverage?
- The Best Insurance Companies in Connecticut for You
- What is the Minimum Insurance Coverage in Connecticut?
- Connecticut’s Insurance Rates and Why They are High
How Much Can You Save on Minimum Coverage?
Picking the right insurance company is the best way to start saving on your coverage premiums. Taking the minimum coverage car insurance quotes CT has to offer, you will notice that the right company could save you about $1400 each year. Based on your lifestyle, Connecticut insurance companies like GEICO offer some of the cheapest rates at about $290 a year, whilst others like Progressive Insurance have the same policies at almost four times the cost.
This doesn’t mean that you will see the same difference, of course. Insurance costs are calculated for each person different, which means that your personal information is going to be used to determine your personal premium rate. The best way to find the cheapest car insurance CT has to offer you is to do some work of your own and get quotes from the different companies in your area.
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Most of the major insurance companies in CT have online quote systems which should only take you about 5 minutes to fill out and receive quotes for. Calling in and asking for a quote over the phone should take about 15 minutes. Since you will probably have most of the personal details you need in your memory already, you won’t need much preparation for applying for quotes. You should, however, check out your annual mileage (an average) and prior accident details before doing this.
The Best Insurance Companies in Connecticut for You
- Best is a company that rates companies across the nation based on how strong they are financially. This means that if the insurance company you are looking at has a high rating on the site, they are stable enough financially to pay out your insurance policy when needed. Companies that are rated as highly as this are also among the best in class for customer support. In the event of an accident, this is something you are going to need in large doses.
Among the five best rated insurance companies in CT are GEICO, with their $291 quote for minimum coverage, followed by Allstate insurance, which quoted $528 (a pretty large difference!). Progressive Insurance quoted $638, while Amica and Liberty Mutual both quoted over $1000 for their minimum coverage insurance policy.
How to Deal with Price Optimization
The common consensus when getting cheap auto insurance in CT is that the premium cost depends on your risk of getting in an accident. However, price optimization is another way in which car insurance companies try to drive your insurance up. They do this by looking at your personal data including your online shopping, social media, and your credit history. They do this to see how open you are to higher prices. Based on these results they increase your premiums by just enough to keep you content while making a larger profit.
Basically, the larger companies figure out whether or not you’re settled in with their plan. If they think you have no chance of leaving, they will take advantage of the fact. The best way to deal with this is to shop around for a new insurance plan at a different company every year at least. This will help keep the insurance company on their toes and your insurance cost at an all time low. If their optimization process shows that you are looking to leave them, they will actively try to get you to stay.
Here is where the law comes in, though. The state of Connecticut banned the practice of price optimization in 2015. All the major insurance companies were supposed to cut it out in 60 days. If you have an insurance policy you bought before this time, you should probably ask for new car insurance quotes from your company. Verify that they have actually stopped optimizing your prices. If you see a major difference in your quotes, you should inquire about it with your agent. Remember – this is your money that is leaving your pockets.
What is the Minimum Insurance Coverage in Connecticut?
If you’re a resident of CT, your minimum insurance coverage is dictated by state law. You must be covered for at least $20000 for bodily harm to people in the accident, $40000 for the overall damage in the accident, and $10000 for damage to property. Compared to states like Indiana, this isn’t much. The insurance company will refer to this as the 20/40/10 plan. In addition to this, you are required by the law to have uninsured motorist coverage. This covers your costs if an uninsured or underinsured driver hits you.
Can Minimum Coverage in CT Save You in an Accident?
This is a complex situation. Dealing with it requires a little logic. One thing that can be said right off the bat is that there is no way that minimum coverage is the cheapest car insurance CT has to offer you. It might be cheaper in terms of premium payments, but you have to think about the possibility of an accident.
The average cost of damages in an accident that disables someone is about $80000. The personal injury coverage in a minimum coverage plan in CT is $20000. Who has to cover the remaining $60000? You do, out of your own pocket. This will drain you financially. If you’re in the middle class, you probably won’t be able to pay the entire cost off, either. Getting more coverage on your insurance plan could actually save you a LOT of money in the future.
For example, consider a 100/200/50 plan. This is five times the coverage you get with the minimum plan. At the GEICO insurance company, you can get this plan for an addition $100 a year. That is, you get five times the coverage for about $8 extra each month. When you get involved in an accident while you have this plan, you will be fully covered for all costs. Read more about full coverage car insurance here.
Other Types of Coverage to Consider
When in Connecticut looking for car insurance, you should consider getting vehicle protection. Since many people in CT tend to lease their vehicles or get them on loan, having vehicle protection allows you to reassure your loan provider that they will get their money back in case of an accident. This is a very useful type of insurance to consider if you have a new model of car, even in cases where you aren’t required by anyone to have this coverage. This is mainly because auto repairs in CT can be quite costly, and a few dollars more on your monthly premium could save you thousands in repairs later.
Some of you might be considering skipping insurance and taking the risk of driving carefully without it. Just remember: getting pulled over without insurance can net you a fine of $200, suspension of your license and registration, and worse.
Connecticut’s Insurance Rates and Why They are High
First off, you need to remember that there are many factors that influence the actual price of your insurance premiums. Your zip code is one of the most important. For example, living in Newhaven and getting insurance will cost you $174 on average each month, while living somewhere like Danbury will cost you about $134 on average. This is almost a $50 difference in the rates across CT.
One of the main reasons behind the increased rates of CT’s insurance premiums is the population in the urban regions. The major cities like Newhaven have a pretty high population per unit area of land. More people means a greater chance of an accident on the streets, as well as theft and damage to your car while parked. Since the cities also have generally higher costs for repairs and healthcare than rural parts of the state and country, your premiums for coverage in CT might be more than the premiums for the same coverage in a state like Wyoming.
The best way to get the best deals for cheap car insurance quotes CT has to offer is to request the quotes from the companies yourself. Compare rates and coverage on your own for your personal premiums. If at all possible, you should definitely go with more coverage than the bare minimum required by the state. A penny spent now is thousands saved later!