Writing this article would sure be easy if we could simply tell you the one company that has the lowest rates in Ohio. It's not quite that easy, unfortunately, as there are a whole slew of unknown aspects such as how old you are, if you have ever had a coverage lapse, how high your deductibles should be, and if you have any tickets or accidents, that all impact the cost of your policy. This article covers the things that cause high insurance rates and will hopefully give you some help in finding cheaper rates.
Locating cheap car insurance is difficult, and determining which companies have the lowest-priced auto insurance rates for homeowners will take even more work. Every insurance company uses a different method to set their prices, so let's begin by examining the auto insurance companies with the overall best prices in Columbus.
It's important that you understand Columbus, OH auto insurance rates are influenced by many factors that may substantially change the cost of coverage. This is why Columbus drivers need to spend some time comparing rates to get the most economical auto insurance rates for homeowners. Insurance prices are made up of many factors and can decrease or increase without notice, so the most economical company when you last compared rates may now be priced much higher than other options.
Cheap Insurance Rates for Homeowners
Utica National may have some of the cheapest car insurance rates in Columbus at around $647 each year. Erie, Allied, Frankenmuth, and USAA also rank well as some of the best Columbus, OH insurance companies.
As shown above, if you are insured with Erie and switched to Utica National, you might realize an annual premium reduction of roughly $20. Customers with Allied could save as much as $29 a year, and Frankenmuth customers might reduce rates by $54 a year.
Remember that these premium estimates are averaged for all drivers and vehicles and do not take into consideration a vehicle location for homeowners. So the insurer that fits your age and vehicle best may not even be in the top 33 companies in the list above. That helps illustrate why you need to quote rates from many companies using your own individual information.
One of the more important components that help determine the amount you pay each year for auto insurance is where your residence is. Areas with more people or higher crime rates tend to have more expensive car insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates have the enjoyment of a little cheaper coverage.
The next table ranks the most expensive places in Ohio for homeowners to purchase a policy in. Columbus makes the list at #3 with an annual rate of $1,235 for the average policyholder, which is approximately $103 each month.
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Premium amounts are comparative as specific location information can impact premium rates noticeably.
The example below demonstrates how deductibles can impact premium costs when searching for cheap insurance for homeowners. The rates are based on a married male driver, comp and collision included, and no discounts are taken into consideration.
The data above shows that a 40-year-old driver could lower their policy premium by $158 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $240 by using a $1,000 deductible. Even younger drivers, like the 20-year-old category, could reduce their rates up to $528 or even more just by choosing higher deductibles when buying full coverage.
When choosing a higher deductible, it will be required to have plenty of discretionary funds to enable you to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Comparison of full coverage and liability-only policies
Saving money on auto insurance is the goal of the majority of vehicle owners, and a good way to reduce the cost of insurance for homeowners is to only buy liability insurance. The illustration below illustrates the comparison of insurance rates when comparing full coverage to liability only. The premium estimates are based on no claims or driving citations, $100 deductibles, marital status is single, and no discounts are taken into consideration.
Averaged for all age groups, physical damage insurance costs an extra $1,308 per year more than just buying liability insurance. At some point, almost every driver questions if you should buy full coverage. There is no definitive guideline to stop paying for physical damage coverage, but there is a guideline you can consider. If the annual cost of having full coverage is more than around 10% of any settlement you would receive from your insurance company, then it may be the right time to buy liability only.
For example, let's pretend your vehicle's replacement cost is $10,500 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most you would get paid by your company is $9,500 after paying your policy deductible. If you are paying over $950 annually to have full coverage, then it could be time to drop full coverage.
You are probably paying too much for car insurance
Columbus, OH auto insurance rates are based on many factors that may substantially change the price you have to pay for coverage. Simply turning a year older, increasing deductibles, or having a fender bender can cause premium changes that can make some companies cheaper than others.
In addition to those changes, car insurance companies modify pricing as often as every quarter to help ensure profitability. Heavier than normal losses may result in rate increases, while less frequent claims can produce lower-priced Columbus car insurance rates.
For example, the graph below shows the companies that have the cheapest car insurance in Columbus, OH for a 30-year-old male driver with no prior claims, no tickets, and good financial standing. When comparing rates based on his personal profile, Utica National might quote the most affordable car insurance rates in Columbus at $812 per year. This is $228 less than the average rate paid by Ohio drivers of $1,040. Allied, Frankenmuth, Erie, and USAA are also on the list of the top five cheapest Columbus, OH auto insurance companies.
Now we will give the driver from the first rate comparison a chargeable accident, a lower credit score, and a couple of points charged on his driving record. Since each auto insurance company has their own guidelines to set their prices, analyzing rates may now show a different list of the cheapest companies as shown below.
Cincinnati Insurance now has the cheapest price in Columbus with Merchants Insurance Group, Grange Mutual, General Casualty, and Motorists Mutual also having competitive pricing. This example demonstrates why Ohio drivers need to compare as many rates as possible when trying to get affordable insurance rates for homeowners. Rates can be altered by many things and can increase or decrease at any time, so the cheapest option a year ago may now be costing you a lot of money.
How to find the cheapest car insurance for homeowners
It's not impossible to find cheaper rates, and here are some money-saving solutions that can help you get low-cost coverage.
- Buy a car with high safety ratings
- At-fault accidents can raise rates significantly
- Clean up your credit
- Raise your deductibles
- Save money by insuring older vehicles for liability only
- Do not get tickets or violations
- Shop around for lower rates once a year
That last piece of advice is certainly vital, as we emphasized in the prior article. Coverage prices in Columbus can change considerably based on profitability, so drivers shouldn't be reluctant to buy a different policy if a cheaper rate is available.
Many drivers have brand loyalty and that's fine, but we do not recommend it if that stubbornness costs you money that could be going to better use. If you have a few minutes, now is a great time to compare prices to find cheaper auto insurance for homeowners.
If you aren't sure which coverage to buy and prefer to have some advice when shopping for cheaper insurance for people who own their homes, the agents below are a good start to help you determine which car insurance company is the best fit. To find an agent close to you, click the link at the bottom or click here to compare price quotes now.
Geswein Insurance Agency LLC
5214 Bethel Center Mall - Columbus, OH 43220 - (614) 538-2944
Guy P Williams Insurance Agency
1335 Dublin Rd #110d - Columbus, OH 43215 - (614) 488-1101
Scott Dawson - State Farm Insurance Agent
5871 Cleveland Ave - Columbus, OH 43231 - (614) 891-2886
Andrea Taylor - State Farm Insurance Agent
5540 N Hamilton Rd - Columbus, OH 43230 - (614) 855-9421