No one in their right mind looks forward to buying auto insurance, especially when they could lower their rates if they shopped around.
Shocking but true, about 70% of customers renewed their policy with the same company for four years or more, and almost 40% of drivers have never taken the time to shop around. Many consumers in America could save $859 a year by just shopping around, but they just don’t understand the big savings they would realize if they switched to a cheaper policy.
With so many different company options, it’s nearly impossible to find a more affordable insurance company.
The purpose of this article is to teach you how car insurance works. If you have a current insurance policy, you will most likely be able to save money using the ideas covered in this article. But Wisconsin consumers can benefit from knowing how insurance companies price insurance differently because it can help you find the best coverage.
When quoting auto insurance, remember that making a lot of price comparisons helps locate better pricing.
The companies shown below can provide price quotes in Madison, WI. If you want to find the cheapest auto insurance in WI, we suggest you click on several of them to get the best price comparison.
Auto insurance is not optional in Wisconsin
Despite the fact that auto insurance is not cheap in Madison, paying for auto insurance serves an important purpose.
- Almost all states have compulsory liability insurance requirements which means it is punishable by state law to not carry specific minimum amounts of liability protection in order to license the vehicle. In Wisconsin 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 your Cadillac XLR has a loan, it’s guaranteed your bank will require that you have physical damage coverage to protect their interest in the vehicle. If coverage lapses or is canceled, the bank may insure your Cadillac at a much higher premium rate and require you to fork over for the much more expensive policy.
- Auto insurance protects not only your Cadillac XLR but also your assets. It will also provide coverage for medical expenses incurred in an accident. One policy coverage, liability insurance, also pays expenses related to your legal defense if you cause an accident and are sued. If your Cadillac gets damaged, collision and comprehensive coverages will pay to repair the damage minus the deductible amount.
The benefits of having auto insurance definitely exceed the cost, especially when you need to use it. According to a 2015 survey, the average American driver is currently overpaying as much as $700 annually so it’s important to compare rates at every policy renewal to ensure rates are inline.
What car insurance coverages do you need?
Having a good grasp of your car insurance policy can help you determine appropriate coverage and the correct deductibles and limits. The terms used in a policy can be ambiguous and even agents have difficulty translating policy wording. Below you’ll find the normal coverages available from car insurance companies.
Liability auto insurance
Liability coverage protects you from damage that occurs to other people or property by causing an accident. This insurance protects YOU from claims by other people. Liability doesn’t cover your own vehicle damage or injuries.
Coverage consists of three different limits, per person bodily injury, per accident bodily injury, and a property damage limit. You commonly see policy limits of 25/50/10 that means you have $25,000 in coverage for each person’s injuries, a per accident bodily injury limit of $50,000, and a limit of $10,000 paid for damaged property. Alternatively, you may have one limit called combined single limit (CSL) which limits claims to one amount without having the split limit caps.
Liability insurance covers claims like funeral expenses, attorney fees, pain and suffering, emergency aid and structural damage. How much liability coverage do you need? That is a decision to put some thought into, but consider buying as much as you can afford. Wisconsin state law requires minimum liability limits of 25/50/10 but it’s recommended drivers buy higher limits.
The next chart demonstrates why the minimum limit may not be high enough to adequately cover claims.
Coverage for collisions
Collision insurance pays for damage to your XLR caused by collision with another vehicle or an object, but not an animal. A deductible applies and the rest of the damage will be paid by collision coverage.
Collision insurance covers things like sideswiping another vehicle, scraping a guard rail and hitting a parking meter. Collision is rather expensive coverage, so consider dropping it from lower value vehicles. You can also bump up the deductible on your XLR to get cheaper collision coverage.
Comprehensive car insurance
This coverage covers damage OTHER than collision with another vehicle or object. You need to pay your deductible first and then insurance will cover the rest of the damage.
Comprehensive insurance covers claims such as damage from a tornado or hurricane, a broken windshield and rock chips in glass. The maximum amount a car insurance company will pay at claim time is the market value of your vehicle, so if your deductible is as high as the vehicle’s value consider removing comprehensive coverage.
Coverage for medical expenses
Coverage for medical payments and/or PIP kick in for expenses like rehabilitation expenses, surgery, ambulance fees and funeral costs. They can be utilized in addition to your health insurance policy or if you are not covered by health insurance. Coverage applies to all vehicle occupants and also covers getting struck while a pedestrian. Personal Injury Protection is only offered in select states but it provides additional coverages not offered by medical payments coverage
Coverage for uninsured or underinsured drivers
This coverage gives you protection when the “other guys” are uninsured or don’t have enough coverage. Covered losses include medical payments for you and your occupants and damage to your Cadillac XLR.
Due to the fact that many Wisconsin drivers only purchase the least amount of liability that is required (25/50/10), their limits can quickly be used up. For this reason, having high UM/UIM coverages is very important. Normally your uninsured/underinsured motorist coverages are set the same as your liability limits.
Auto insurance company ratings
Ending up with a good quality insurance provider can be rather challenging considering how many choices you have in Wisconsin. The company information shown below may help you pick which auto insurance companies to look at comparing prices from.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 99 | 100 | 90 | 92% | A++ | 97.4 |
| 21st Century | 89 | 86 | 100 | 88% | A | 92.7 |
| GEICO | 97 | 91 | 88 | 85% | A++ | 92.5 |
| Nationwide | 88 | 94 | 91 | 88% | A+ | 91.3 |
| AAA Insurance | 93 | 87 | 88 | 87% | A | 90.8 |
| Liberty Mutual | 91 | 91 | 92 | 87% | A | 90.7 |
| Safeco Insurance | 90 | 93 | 88 | 86% | A | 90.2 |
| State Farm | 91 | 94 | 80 | 88% | A++ | 90.2 |
| Travelers | 89 | 91 | 94 | 79% | A++ | 90.1 |
| American Family | 88 | 92 | 83 | 88% | A | 89.4 |
| Allstate | 90 | 90 | 84 | 85% | A+ | 89.1 |
| Progressive | 83 | 85 | 99 | 87% | A+ | 88.7 |
| Erie Insurance | 92 | 90 | 82 | 88% | A+ | 88.5 |
| The Hartford | 87 | 89 | 84 | 87% | A+ | 88 |
| Esurance | 84 | 88 | 85 | 83% | A+ | 86 |
| Farmers Insurance | 79 | 88 | 84 | 87% | A | 84.7 |
| The General | 88 | 80 | 85 | 80% | A- | 84.5 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Final considerations
We just presented a lot of ways to compare Cadillac XLR insurance prices in Madison. It’s most important to understand that the more rate quotes you have, the better your chances of lowering your rates. Consumers could even find that the most savings is with a lesser-known regional company. These smaller insurers often have lower rates on specific markets than the large multi-state companies such as Progressive or GEICO.
As you shop your coverage around, make sure you don’t skimp on critical coverages to save a buck or two. Too many times, drivers have reduced comprehensive coverage or liability limits and learned later that the savings was not a smart move. Your objective should be to find the BEST coverage at the best cost and still be able to protect your assets.
How to find the cheapest rates for Cadillac XLR insurance in Madison
The easiest way to find cheaper quotes for Cadillac XLR insurance is to compare prices regularly from companies who provide auto insurance in Madison. Rates can be compared by completing these steps.
Step 1: Get a basic knowledge of the different coverages in a policy and the changes you can make to prevent rate increases. Many factors that drive up the price such as traffic violations, accidents, and a substandard credit score can be eliminated by making lifestyle changes or driving safer.
Step 2: Compare price quotes from independent agents, exclusive agents, and direct companies. Exclusive and direct companies can only provide price estimates from a single company like GEICO and Allstate, while independent agents can provide prices from multiple companies.
Step 3: Compare the new rates to your current policy and determine if cheaper XLR coverage is available in Madison. If you find better rates, make sure there is no coverage gap between policies.
The most important part of shopping around is to compare identical limits and deductibles on every quote request and and to compare as many companies as you can. Doing this provides the most accurate price comparison and the best price selection.
To learn more, link through to the following helpful articles:
- Keeping Children Safe in Crashes Video (iihs.org)
- What Insurance is Cheapest for Drivers Under 25 in Madison? (FAQ)
- Who Has Cheap Auto Insurance for a Toyota Corolla in Madison? (FAQ)
- What Insurance is Cheapest for Hybrid Vehicles in Madison? (FAQ)
- Coverage Information (Progressive Insurance)
- Comprehensive Coverage (Liberty Mutual)
- Driving in Bad Weather (Insurance Information Institute)
- Credit Impacts Car Insurance Rates (State Farm)