Save Money on GMC Sierra 2500HD Insurance in Baltimore

It’s a known fact that car insurance companies want to keep you from shopping around. People who get price comparisons are likely to move their business because of the high probability of finding good coverage at a lower price. A recent study showed that drivers who routinely compared rates saved over $3,500 over four years compared to drivers who never shopped around for cheaper prices.

If finding the cheapest price on auto insurance is the reason for your visit, then having some insight into how to quote and compare coverage rates can make shopping around easier.

If saving the most money is your goal, then the best way to get budget GMC Sierra 2500HD insurance is to start doing a yearly price comparison from insurers who can sell car insurance in Baltimore. This can be done by completing these steps.

1. Read and learn about what coverages are included in your policy and the steps you can take to prevent expensive coverage. Many factors that cause rate increases like speeding tickets, accidents and a not-so-good credit rating can be rectified by paying attention to minor details.
2. Obtain price quotes from independent agents, exclusive agents, and direct companies. Direct and exclusive agents can give quotes from a single company like Progressive and State Farm, while agents who are independent can provide prices from multiple sources. Get quotes now
3. Compare the quotes to the price on your current policy to determine if switching companies saves money. If you find a lower rate and make a switch, ensure there is no coverage lapse between policies.
4. Give proper notification to your current agent or company to cancel your current policy. Submit a completed policy application and payment for your new policy. Immediately upon receiving it, keep the new certificate of insurance in an easily accessible location in your vehicle.

The most important part of shopping around is to use the same liability limits and deductibles on every quote request and and to look at as many auto insurance providers as possible. This ensures an apples-to-apples comparison and a complete selection of prices.

Premium rates and analysis

The table shown below outlines different insurance rates for GMC Sierra 2500HD models. Learning as much as possible about how prices are calculated can help guide drivers when making decisions on the best policy to buy.

Table data represents single female driver age 40, no speeding tickets, no at-fault accidents, $1000 deductibles, and Maryland minimum liability limits. Discounts applied include multi-policy, homeowner, safe-driver, claim-free, and multi-vehicle. Premium amounts do not factor in specific zip code location which can influence rates noticeably.

How high should deductibles be?

One of the most common insurance questions is at what level do you set your deductibles. The following tables highlight the rate difference when you buy lower versus higher policy deductibles. The first rate estimation uses a $250 deductible and the second price grid uses a $1,000 deductible.

Price data assumes married male driver age 30, no speeding tickets, no at-fault accidents, and Maryland minimum liability limits. Discounts applied include safe-driver, multi-policy, multi-vehicle, homeowner, and claim-free. Price information does not factor in garaging location in Baltimore which can change premium rates substantially.

Using the data above, we can ascertain that using a $250 deductible costs about $35 more each month or $420 each year than selecting the higher $1,000 deductible. Because you would be required to pay $750 more if you turn in a claim with a $1,000 deductible as compared to a $250 deductible, if you tend to average at least 21 months between claims, you would probably save some money if you opt for a higher deductible. Below is the way you can decide this on your own policy.

One thing to be aware of is that increasing deductibles to lower your rates results in a higher out-of-pocket expense when you file a claim. You need to have enough extra savings in the event you need to pay more to get your vehicle repaired.

The diagram below demonstrates how deductibles and can raise or lower GMC Sierra 2500HD insurance costs for different age categories. The prices are based on a single female driver, full coverage, and no additional discounts are factored in.

Insurance premiums by gender

The chart below shows the difference between GMC Sierra 2500HD annual premium costs for male and female drivers. The premiums assume no claims or violations, comp and collision included, $1,000 deductibles, drivers are single, and no additional discounts are factored in.

Full coverage versus liability-only in Baltimore

The illustration below visualizes the comparison of GMC Sierra 2500HD insurance costs when comparing full coverage to liability only. The costs are based on no claims or driving violations, $250 deductibles, single status, and no discounts are taken into consideration.

When to stop buying physical damage coverage

There is no clear-cut formula that is best for determining when to drop physical damage insurance, but there is a general school of thought. If the annual cost of your full coverage insurance is about 10% or more of any settlement you would receive from your insurance company, then it could be time to drop full coverage.

For example, let’s say your GMC Sierra 2500HD book value is $4,000 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, the most your company would pay you is $3,000 after the deductible is paid. If you are paying over $300 annually for physical damage coverage, then it’s probably a good time to buy liability coverage only.

There are some cases where eliminating full coverage is not in your best interest. If you haven’t paid off your loan, you must maintain physical damage coverage as part of the loan conditions. Also, if you can’t afford to buy a different vehicle in case of an accident, you should keep full coverage.

Specifics of your auto insurance policy

Learning about specific coverages of your auto insurance policy can be of help when determining which coverages you need at the best deductibles and correct limits. Policy terminology can be difficult to understand and coverage can change by endorsement. Shown next are the normal coverages available from auto insurance companies.

Comprehensive insurance

This coverage will pay to fix damage caused by mother nature, theft, vandalism and other events. A deductible will apply and then insurance will cover the rest of the damage.

Comprehensive coverage pays for things such as hitting a bird, damage from getting keyed, a broken windshield and damage from flooding. The most a auto insurance company will pay at claim time is the market value of your vehicle, so if it’s not worth much more than your deductible it’s not worth carrying full coverage.

Med pay and Personal Injury Protection (PIP)

Med pay and PIP coverage provide coverage for expenses for things like surgery, nursing services and funeral costs. They are often used to cover expenses not covered by your health insurance policy or if you are not covered by health insurance. It covers not only the driver but also the vehicle occupants in addition to getting struck while a pedestrian. PIP coverage is not available in all states but can be used in place of medical payments coverage

Uninsured/Underinsured Motorist (UM/UIM)

Your UM/UIM coverage gives you protection when the “other guys” are uninsured or don’t have enough coverage. It can pay for hospital bills for your injuries as well as damage to your GMC Sierra 2500HD.

Since a lot of drivers only purchase the least amount of liability that is required (30/60/15 in Maryland), it only takes a small accident to exceed their coverage. For this reason, having high UM/UIM coverages is a good idea.

Collision coverage protection

Collision coverage pays for damage to your Sierra 2500HD resulting from a collision with another car or object. You have to pay a deductible and the rest of the damage will be paid by collision coverage.

Collision insurance covers things such as colliding with a tree, rolling your car, colliding with another moving vehicle and hitting a mailbox. Collision coverage makes up a good portion of your premium, so consider removing coverage from vehicles that are 8 years or older. Another option is to raise the deductible on your Sierra 2500HD to get cheaper collision coverage.

Liability coverages

Liability coverage protects you from damage that occurs to people or other property by causing an accident. Split limit liability has three limits of coverage: bodily injury per person, bodily injury per accident and property damage. You commonly see liability limits of 30/60/15 which stand for a $30,000 limit per person for injuries, a per accident bodily injury limit of $60,000, and a total limit of $15,000 for damage to vehicles and property.

Liability insurance covers things like court costs, attorney fees, pain and suffering and repair bills for other people’s vehicles. How much coverage you buy is up to you, but consider buying as much as you can afford. Maryland requires minimum liability limits of 30/60/15 but it’s recommended drivers buy more liability than the minimum.

The next chart demonstrates why buying low liability limits may not be high enough to cover claims.

Cheaper insurance is out there

The cheapest GMC Sierra 2500HD insurance in Baltimore can be purchased from both online companies and with local Baltimore insurance agents, and you should be comparing both in order to have the best price selection to choose from. Some insurance companies do not provide online rate quotes and most of the time these regional carriers only sell through independent agencies.

In this article, we covered quite a bit of information on how to save on GMC Sierra 2500HD insurance in Baltimore. The key concept to understand is the more you quote Baltimore car insurance, the higher your chance of finding low cost Baltimore car insurance quotes. Consumers may even find the lowest prices come from the smaller companies. Some small companies may cover specific market segments cheaper as compared to the big name companies such as State Farm or Progressive.

More tips and info about insurance can be read by following these links:

• How to shop for a safer car (Insurance Institute for Highway Safety)
• How Much is Baltimore Car Insurance for Drivers with Good Credit? (FAQ)
• Who Has Cheap Auto Insurance for Good Students in Baltimore? (FAQ)
• What Insurance is Cheapest for Teenagers in Baltimore? (FAQ)
• Think You’re a Safe Driver? (State Farm)
• What is Covered by an Auto Insurance Policy? (Insurance Information Institute)
• Booster Seat Ratings (iihs.org)
• Automakers compete to add autobraking (Insurance Institute for Highway Safety)