How to Compare Indianapolis Honda Element Insurance

A study showed that almost 70% of drivers kept their coverage with the same car insurance company for at least four years, and about 40% of consumers have never compared quotes from other companies. With the average car insurance premium being $1,390, Indianapolis drivers could save an average of approximately 55% each year just by shopping around, but most undervalue how much money they would save if they moved their coverage to a different company.

If you want to save the most money, the best way to find the cheapest price for Honda Element insurance in Indianapolis is to start doing an annual price comparison from insurance carriers who provide car insurance in Indiana.

First, gain an understanding of how insurance companies determine prices and the measures you can control to keep rates down. Many risk factors that are responsible for high rates like tickets, at-fault accidents, and a lousy credit rating can be controlled by making lifestyle changes or driving safer. Continue reading for more information to lower rates and find discounts that may have been missed.

Second, obtain price quotes from direct carriers, independent agents, and exclusive agents. Direct companies and exclusive agencies can give quotes from one company like GEICO or Allstate, while agents who are independent can provide price quotes for a wide range of insurance providers. Compare rates now

Third, compare the new rate quotes to your existing rates to see if switching to a new carrier will save money. If you find better rates and change companies, make sure there is no coverage gap between policies.

Fourth, notify your company or agent to cancel the current policy. Submit the completed application along with a down payment for the new policy. Immediately keep your new certificate verifying proof of insurance along with the vehicle’s registration papers.

The most important part of shopping around is to use identical coverages on every price quote and and to look at all possible companies. This enables an apples-to-apples comparison and the best price selection.

It’s important to know that having more price comparisons increases the chance that you will find more affordable insurance.

The auto insurance companies shown below offer free quotes in Indiana. If several companies are displayed, it’s a good idea that you compare several of them to get the lowest price.

Insurance data for a Honda Element

The data table shown below covers different insurance policy prices for Honda Element models. Understanding how policy rates are calculated helps drivers make smart choices when choosing a car insurance company.

Data rating is based on married male driver age 30, no speeding tickets, no at-fault accidents, $100 deductibles, and Indiana minimum liability limits. Discounts applied include homeowner, multi-vehicle, claim-free, safe-driver, and multi-policy. Price estimates do not factor in your specific Indianapolis location which can influence premiums significantly.

Higher deductibles lower rates

A question often asked by Indianapolis drivers is which deductibles should you choose. The comparisons below can help you visualize the cost difference when you select higher and lower comp and collision deductibles. The first pricing table uses a $100 physical damage coverage deductible and the second price table uses a $1,000 deductible.

Data based on married male driver age 30, no speeding tickets, no at-fault accidents, and Indiana minimum liability limits. Discounts applied include homeowner, multi-vehicle, multi-policy, claim-free, and safe-driver. Table data does not factor in specific location which can influence premiums considerably.

We can estimate from the data above that using a $100 deductible will cost you approximately $28 more each month or $336 every year than opting for the higher $1,000 deductible. Because you would be required to pay $900 more to settle a claim with a $1,000 deductible as compared to a $100 deductible, if you have at least 32 months between claims, you would save more money if you choose the higher deductible. The illustration below shows an example of how this decision is made.

One important issue to know is that raising deductibles to get cheaper rates means you will have to pay more out-of-pocket when you have to file a claim. You need to make sure you have enough savings in the event you need to pay the deductible for vehicle repair.

Gender differences in insurance premiums

The diagram below shows the difference between Honda Element insurance prices for male and female drivers. The price estimates are based on a clean driving record, no claims, full coverage, $250 deductibles, single status, and no other discounts are factored in.

Honda Element liability-only versus full coverage

The information below compares Honda Element insurance prices with full physical damage coverage compared to only buying liability only. The information is based on no driving violations, no at-fault accidents, $1,000 deductibles, drivers are single, and no discounts are taken into consideration.

Are you wasting money on full coverage?

There is no clear-cut formula to eliminate physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of your full coverage insurance is more than around 10% of replacement cost minus your deductible, then you might want to think about dropping full coverage.

For example, let’s pretend your Honda Element claim settlement value is $9,000 and you have $1,000 policy deductibles. If your vehicle is destroyed, the most your company would pay you is $8,000 after you pay the deductible. If you are currently paying more than $800 a year for physical damage coverage, then you might consider buying liability only.

There are a few situations where dropping full coverage is not in your best interest. If you still owe money on your vehicle, you have to keep full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you don’t have enough money to buy a different vehicle if your current one is totaled, you should keep full coverage in place.

Components of Your Honda Element Insurance Prices

Many factors are used when premium rates are determined. Some are pretty understandable like an MVR report, but other criteria are less obvious like your vehicle usage or how financially stable you are.

The list below includes some of the most rate-impacting factors insurance companies consider when setting your rates.

Cheap premiums for being claim-free – Insurance companies in Indiana give lower rates to people who are claim-free. If you frequently file small claims, you can look forward to much higher rates or policy non-renewal. Auto insurance is intended to be relied upon for the large, substantial claims.

Annual miles is a factor – The higher the miles on your Honda in a year the higher your rates will be. A lot of insurance companies calculate prices partially by how you use the vehicle. Cars and trucks that do not get driven very much receive lower rates as compared to vehicles used primarily for driving to work. Ask your agent if your insurance policy reflects the right rating data, because it can save money. An improperly rated Element is throwing money out the window.

Gaps in coverage mean higher insurance rates – Driving without insurance is illegal and any future policy may cost more because you let your insurance lapse. Not only will you pay higher rates, failure to provide proof of insurance may earn you fines and jail time.

Marriage discount – Having a significant other may earn you lower rates on insurance. It means you’re more stable financially and statistics prove married drivers get in fewer accidents.

Increase deductibles and save – Deductibles for physical damage define the amount the insured will be required to pay if a covered claim is submitted. Physical damage protection, also known as collision and other-than-collision, covers damage that occurs to your car. Examples of some claims that would be covered would be colliding with a stationary object, collision with a deer, and damage caused by road hazards. The more damage repair cost the insured is willing to pay, the lower your rates will be.

More traffic equals higher costs – Being located in a rural area may provide you with better prices when shopping for auto insurance. Fewer people means a lower chance of having an accident in addition to fewer liability claims. Urban drivers regularly have traffic congestion and more time behind the wheel. Spending more time driving means more chance of being in an accident.

If you don’t need it don’t buy it – There are quite a few optional add-on coverages that can waste your money on your insurance policy. Things like rental car reimbursement, high-cost glass coverage, and extra equipment coverage could be just wasting money. They may seem good when you first buy your policy, but your needs may have changed so eliminate them to save money.

Why do I need car insurance?

Despite the high cost, maintaining insurance is required in Indiana but it also protects you in many ways.

• Most states have minimum liability requirements which means the state requires specific minimum amounts of liability insurance coverage if you drive a vehicle. In Indiana these limits are 25/50/10 which means you must have $25,000 of bodily injury coverage per person, $50,000 of bodily injury coverage per accident, and $10,000 of property damage coverage.
• If you have a lien on your Honda, most banks will force you to carry insurance to ensure they get paid if you total the vehicle. If you cancel or allow the policy to lapse, the bank may insure your Honda for a lot more money and force you to pay much more than you were paying before.
• Insurance protects both your assets and your car. It also can pay for medical transport and hospital expenses for you, your passengers, and anyone else injured in an accident. One of the most valuable coverages, liability insurance, also pays expenses related to your legal defense if you are sued as the result of your driving. If your car is damaged in a storm or accident, collision and comprehensive (also known as other-than-collision) coverage will pay to restore your vehicle to like-new condition.

The benefits of having insurance more than offset the price you pay, particularly for liability claims. According to a recent study, the average American driver is overpaying over $750 every year so you should quote rates at least once a year to be sure current rates are still competitive.