How to Save on Madison Honda Fit Insurance

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The recommended way to save on car insurance rates in Madison is to regularly compare quotes from different companies in Wisconsin. Prices can be compared by following these steps.

First, it will benefit you to learn about the different coverages in a policy and the factors you can control to prevent expensive coverage. Many things that cause high rates such as your driving record and a not-so-good credit rating can be amended by making minor changes to your lifestyle.

Second, obtain price quotes from exclusive agents, independent agents, and direct providers. Direct and exclusive agents can only give prices from a single company like GEICO or State Farm, while independent agents can give you price quotes for a wide range of insurance providers. Select a company

Third, compare the new quotes to your existing policy and determine if there is any savings. If you find a lower rate quote and buy the policy, verify that coverage does not lapse between policies.

Fourth, provide written notification to your current company of your intent to cancel your current coverage. Submit the signed application along with the required initial payment to the new company. Immediately put the new proof of insurance paperwork in a readily accessible location in your vehicle.

A good tip to remember is to try to compare the same physical damage deductibles and liability limits on every price quote and and to get prices from all possible companies. Doing this enables a level playing field and a thorough price selection.

Insurance quote for Honda Fit in MadisonInconceivable but true, most consumers in Wisconsin have stayed with the same insurance company for over three years, and nearly 40% of drivers have never quoted rates to find cheaper coverage. Consumers in America could pocket 47% a year, but they don't know how much money they would save if they swap their current policy for a cheaper one.

Six Tips to Get Lower-cost Madison Insurance Prices

Lots of factors are considered when you quote your car insurance policy. Some are pretty understandable such as traffic violations, but some are not as apparent like your vehicle usage or your financial responsibility.

Lower rates for safer vehicles - Vehicles with high crash test scores are cheaper to insure. Safer cars result in less severe injuries and any reduction in injury severity means less claims paid which can result in lower premiums. If the Honda Fit is rated at least four stars on Safercar.gov you may pay a lower rate.

Fewer miles means better premiums - The more you drive your Honda every year the more it will cost to insure it. A lot of insurance companies rate vehicles based upon how much you drive. Vehicles not used for work or commuting get more affordable rates as compared to vehicles used primarily for driving to work. An incorrectly rated Fit can result in significantly higher rates. Verify your insurance coverage correctly shows annual mileage, because improper ratings can cost you money.

Don't get traffic citations - Attentive drivers tend to pay less for car insurance compared to bad drivers. Getting just one moving violation can increase rates by as much as twenty percent. Drivers who have gotten careless tickets like DUI or reckless driving may be required to maintain a SR-22 with their state's department of motor vehicles in order to prevent their license from being revoked.

The illustration below illustrates how speeding tickets and at-fault fender-benders can raise Honda Fit auto insurance costs for each different age category. The data assumes a married male driver, full physical damage coverage, $1,000 deductibles, and no policy discounts are applied.

Women tend to cost less - The statistics show women are more cautious behind the wheel. This data doesn't prove that males are worse at driving than females. Females and males get in accidents in similar numbers, but men have accidents that have higher claims. Men also get higher numbers of serious violations like driving under the influence (DUI). Young men ages 16 to 20 generally have the highest accident percentage so it costs more to insure them.

The chart below illustrates the comparison of Honda Fit car insurance costs for male and female drivers. The premium estimates are based on no accidents or driving violations, comp and collision included, $100 deductibles, drivers are single, and no discounts are taken into consideration.

A good credit rating can save money - Credit history factor in determining your rates. So if your credit score can be improved, you could potentially save money when insuring your Honda Fit if you improve your credit rating. People that have good credit tend to file fewer claims than drivers with lower credit scores.

Consolidating policies can get discounts - Most larger insurance companies will give lower prices to customers who have multiple policies with them. It's known as a multi-policy discount. Discounts can amount to five, ten or even twenty percent. Even with this discount applied, you still need to comparison shop to guarantee you are still saving the most.

Honda Fit insurance loss probability - Insurers analyze historical claim data when setting premium prices. Vehicles that the statistics show to have higher claim frequency or loss amount will be charged more to insure. The table shown below demonstrates the historical insurance loss data for Honda Fit vehicles.

For each policy coverage, the statistical loss for all vehicles averaged together equals 100. Values that are below 100 represent a good loss history, while values that are 100 or greater indicate higher probability of having a loss or an increased chance of a larger loss.

Honda Fit Insurance Claim Statistics
Vehicle Make and Model Collision Property Damage Comp Personal Injury Medical Payment Bodily Injury
Honda Fit 89 78 90 99 97 92
BETTER
AVERAGE
WORSE

Statistics Source: Insurance Institute for Highway Safety for 2013-2015 Model Years

Auto insurance data for a Honda Fit

The table displayed below covers estimates of insurance prices for Honda Fit models. Having a good understanding how insurance prices are determined is important for you to make decisions on which insurance to purchase.

Honda Fit Insurance Rates in Madison, WI
Model Comp Collision Liability Medical UM/UIM Annual Premium Monthly Premium
Fit $172 $368 $204 $12 $62 $818 $68
Fit Sport $198 $368 $204 $12 $62 $844 $70
Fit Sport VSA $198 $434 $204 $12 $62 $910 $76
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Data rating is based on single female driver age 30, no speeding tickets, no at-fault accidents, $250 deductibles, and Wisconsin minimum liability limits. Discounts applied include safe-driver, claim-free, homeowner, multi-policy, and multi-vehicle. Premium costs do not factor in Madison location which can modify coverage prices greatly.

Where to set your deductibles

One common question asked by Madison drivers is how high should the physical damage deductibles be. The comparison tables below outline the rate fluctuation between high and low deductibles. The first rate estimation uses a $250 deductible for physical damage and the second price chart uses a $500 deductible.

Honda Fit insurance premium rates with $250 deductibles
Model Comp Collision Liability Medical UM/UIM Annual Premium Monthly Premium
Fit $154 $300 $152 $10 $46 $687 $57
Fit Sport $178 $300 $152 $10 $46 $711 $59
Fit Sport VSA $178 $352 $152 $10 $46 $763 $64
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Honda Fit insurance premium rates with $500 deductibles
Model Comp Collision Liability Medical UM/UIM Annual Premium Monthly Premium
Fit $126 $242 $152 $10 $46 $576 $48
Fit Sport $144 $242 $152 $10 $46 $594 $50
Fit Sport VSA $144 $284 $152 $10 $46 $636 $53
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Data based on married male driver age 30, no speeding tickets, no at-fault accidents, and Wisconsin minimum liability limits. Discounts applied include safe-driver, claim-free, multi-policy, multi-vehicle, and homeowner. Rates do not factor in Madison location which can increase or decrease rates significantly.

Using the premium rates above, we can conclude that using a $250 deductible will cost in the ballpark of $10 more each month or $120 for a full year across all Honda Fit models than opting for the higher $500 deductible. Because you would pay $250 more if you turn in a claim with a $500 deductible as compared to a $250 deductible, if you go more than 25 months between claims, you would probably save some money by going with a higher deductible. The numbers below show how this decision is made.

Average monthly premium for $250 deductibles: $60
Average monthly premium for $500 deductibles (subtract): - $50
Monthly savings from raising deductible: $10
Difference between deductibles ($500 - $250): $250
Divide difference by monthly savings: $250 / $10
Number of months required between physical damage coverage claims in order to save money by choosing the higher deductible 25 months

An important thing to remember is that a higher deductible means you will have to pay more of your own money if you have a claim. You must have enough disposable savings in order to pay more to get your vehicle repaired.

Does full coverage make sense?

The information below compares Honda Fit annual premium costs with and without physical damage coverage. The premiums assume no violations or accidents, $1,000 deductibles, marital status is single, and no discounts are taken into consideration.

When to drop full coverage

There is no exact formula to eliminate comprehensive and collision coverage on your policy, but there is a guideline you can use. If the yearly cost for physical damage coverage is more than 10% of any settlement you would receive from your insurance company, then you might want to consider buying only liability coverage.

For example, let's assume your Honda Fit replacement cost is $5,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most you would receive is $4,000 after paying the physical damage deductible. If premiums are more than $400 annually to have full coverage, then you may want to consider only buying liability coverage.

There are some circumstances where dropping full coverage is not a good plan. If you still have a loan on your vehicle, you are required to maintain full coverage as part of the loan conditions. Also, if your savings is not enough to buy a different vehicle in case of an accident, you should maintain full coverage.

Don't overlook these Honda Fit insurance discounts

Not many people think insurance is cheap, but you may find discounts that many consumers don't even know exist. Larger premium reductions will be automatically applied when you get a quote, but some must be requested specifically prior to receiving the credit.Discount car insurance

  • Lower Rates for Military - Being deployed in the military may lower your car insurance rates slightly.
  • Life Insurance - Some insurance companies give a small discount if you purchase auto and life insurance together.
  • Theft Deterrent - Cars, trucks, and SUVs optioned with advanced anti-theft systems are less likely to be stolen and earn discounts up to 10% off your Madison auto insurance quote.
  • Accident-Free Discounts - Claim-free drivers pay less when compared to drivers who are more careless.
  • Accident Forgiveness - This isn't a discount exactly, but some insurance companies will forgive one accident without raising rates so long as you haven't had any claims prior to the accident.
  • Student Discounts - Performing well in school could provide a savings of up to 20% or more. The good student discount can last well after school through age 25.
  • Low Mileage - Low annual miles can qualify you for slightly better car insurance rates than normal.

One last thing about discounts, most discount credits are not given to the overall cost of the policy. The majority will only reduce the price of certain insurance coverages like liability and collision coverage. Just because it seems like having all the discounts means you get insurance for free, companies wouldn't make money that way.

The example below shows the comparison of Honda Fit car insurance rates with and without discounts being applied to the rates. The price estimates are based on a female driver, no violations or accidents, Wisconsin state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with homeowner, claim-free, marriage, safe-driver, multi-policy, and multi-car discounts applied.

A few popular companies and some of the premium reductions they offer are outlined below.

  • The Hartford may have discounts that include air bag, bundle, defensive driver, vehicle fuel type, anti-theft, and good student.
  • American Family offers discounts including bundled insurance, multi-vehicle, defensive driver, good driver, air bags, good student, and Steer into Savings.
  • Progressive includes discounts for multi-policy, online signing, homeowner, multi-vehicle, and continuous coverage.
  • Travelers offers premium reductions for new car, good student, payment discounts, driver training, hybrid/electric vehicle, home ownership, and continuous insurance.
  • Farmers Insurance policyholders can earn discounts including teen driver, mature driver, multi-car, switch companies, electronic funds transfer, alternative fuel, and homeowner.
  • USAA may offer discounts for multi-vehicle, new vehicle, defensive driver, driver training, multi-policy, and safe driver.
  • Liberty Mutual has discounts for new graduate, multi-car, good student, new vehicle discount, newly retired, and newly married.

Before you buy a policy, ask each insurance company how you can save money. Depending on the company, some discounts may not apply to policies in Madison. For a list of insurers with discount car insurance rates in Wisconsin, follow this link.

Affordable auto insurance rates are out there

When shopping online for auto insurance, it's a bad idea to skimp on critical coverages to save a buck or two. In many cases, an accident victim reduced liability coverage limits and found out when filing a claim that a couple dollars of savings turned into a financial nightmare. The ultimate goal is to buy the best coverage you can find at the best cost and still be able to protect your assets.

We just showed you many ideas to save on Honda Fit insurance in Madison. The key thing to remember is the more rate comparisons you have, the better your chances of lowering your car insurance rates. Drivers may even discover the lowest rates come from an unexpected company. These companies can often insure niche markets at a lower cost as compared to the big name companies such as State Farm, GEICO and Nationwide.

Much more information about auto insurance in Wisconsin can be found at the links below