Tips for Getting the Best Auto Insurance Rate Possible

October 4, 2017 · Posted in General · Comment 
auto insurance
If you are like most automobile owners, you have probably shopped for auto insurance at least once in your lifetime. And like most of those people, you may have wondered whether there was really anything that you can do to lower the price of your insurance. Well, the good news for you is that there are certain steps you can take to lower your auto insurance premium. Some of the information provided in this article may seem obvious or be viewed as common knowledge by some people, but we hope that you are able to take away at least a couple pieces of information that will help you lower your annual auto insurance premium. If you can, then we have accomplished our goal! 

Auto insurance companies generally take into account several factors when determining your rate, such as driving record, geographical location, vehicle model, coverage limits, vehicle safety features/anti-theft devices, operator discounts, prior insurance, and age. (And in some states and with some companies–sex, marital status, where the vehicle is kept at night, and credit score are also factors) While many of these factors are difficult, if not impossible, to change, there are still some relatively simply steps you can take to save money.

The 11 steps you can take to lower your auto insurance premium are:

(Note: we have tried to list the steps from the most obvious to the least obvious)

1.) Needless to say, try to avoid being involved in accidents or receiving moving violations by driving defensively and obeying all traffic laws–This is by far the most important way to reduce your auto insurance premium (plus it is safe and smart!).

2.) If you already own a registered vehicle, make sure to keep your insurance current, without a lapse in coverage, since many insurance companies provide much better rates to individuals who already have current insurance and have an established history of insurance coverage. Note: If you have had a lapse in insurance on a registered vehicle, we recommend getting insurance coverage as soon as possible and THEN do more shopping for better rates. Since you will have re-established your insurance, you will now be (PRESTO!) an insured motorist and most likely able to secure a better insurance rate immediately with another company.

3.) If you have an anti-theft device on your vehicle, make sure to let your insurance company know about it. If you do not have an anti-theft device already installed, consider adding one if you have comprehensive coverage on your vehicle. Insurance companies generally offer discounts for anti-theft devices from 5% to 20%, or more, of your comprehensive coverage premium, depending on the type of anti-theft device. Vehicle recovery devices (e.g., Lo-Jack or On-Star) generally provide the biggest discount, with automatic anti-theft devices (i.e., those that arm themselves) probably being second on the list, and passive anti-theft devices (i.e., those that you must arm) and window glass etching or ignition shut-off mechanisms probably providing less of a discount. Of course, before installing an anti-theft device you will probably want to compare the savings you will receive by adding it to the total cost of installation. Depending on the cost of installation, it may not be cost-effective to install it.

4.) Check with your insurer to find out whether they offer discounts for attending a defensive driving course. These courses may normally be taken by drivers of all ages. Discounts vary by state and from company to company, but by paying a small fee and spending a few hours of your time for a defensive driving course, you may be able to save yourself approximately 5% to 10% or 15% of your TOTAL insurance premium. Note: If you are over age 55, ask about a special “Mature Driving Course” or “55-Alive Driving Course” discount. Also, if there are multiple drivers on your policy, ask whether you can receive a larger discount if all of you take the course–some companies will offer larger discounts, some won’t, but if you ask, you can at least decide which driver/s on your policy should take the course to maximize your discount.

5.) For youthful operators (generally considered to be drivers under the age of 25), make sure you ask the insurer what discounts they may be eligible for. This may seem obvious, but it is amazing how many people miss out on significant savings because they forget to ask about specific discounts for younger drivers. Driver’s Ed or Driver’s Training and Good Student discounts are the most common types of discounts for youthful operators, but always ask if other discounts may apply.

6.) Always notify your insurance company when you have changes that may be beneficial to you. For instance, if you were single and are now married, make sure to let the insurer know. If you used to commute a far distance to work, but now have a shorter commute or work out of your home or are retired, you will most likely be eligible for a lower rate. If you used to park your car in your driveway or on the street and now park it in an enclosed or covered garage or shed, you may get a lower rate. As a basic rule of thumb, if it seems to you that you are less of a risk due to some change in your life, chances are your insurance company will think the same thing and give you a lower rate.

7.) Check rates for higher Bodily Injury (BI) limits. That’s right, HIGHER limits! Believe it or not, it may be substantially cheaper for you to have limits for BI coverage of 50/100 or 100/300 than it is to have the state minimum coverage. One of the reasons for this odd phenomenon is that insurance companies consider you to be less of a risk if you are the type of individual who would be conscientious enough to have higher limits of BI coverage. Insurance companies have shown statistically that drivers who have higher BI limits are, overall, better risks and less likely to be involved in accidents or losses. Therefore, you can insert yourself into this group of drivers that is viewed more favorably by your company by carrying higher BI limits. Note: If you currently carry lower BI limits, your insurance company may not immediately rate for the change–you may have to wait until the next renewal to see a price change, or, in some cases, you may have to increase your BI limits and then shop for other insurance so that companies give you “credit” for your higher limits.

8.) Consider taking full coverage off of that older vehicle that is paid for. Many, many people carry full coverage on an older-model vehicle they own that may only be worth a couple thousand dollars. Even if they have a total loss of their vehicle, they may only receive a small amount of money for their vehicle after the deductible is taken into account. Yet, they may be paying several hundreds of dollars extra every year for full coverage. To save money, compare what you would receive for your vehicle if you had a total loss to what it costs to carry full coverage, and then make an educated decision. Note: Taking full coverage off of an older vehicle probably makes the most sense when the drivers of the vehicle have a good driving record, since they are even less likely than the average person to have an accident and file a claim.

9.) If your credit score has recently improved, contact your insurance company to find out whether they will re-run your credit score to possibly give you a lower rate. Most auto insurance companies now use credit in one form or another to accurately rate a policy. Whatever your personal opinion is of this practice, it is the standard method of operation for most auto insurance companies. (Note: There are states that have made laws against use of credit for auto insurance rating purposes. In these states, this step will not help you.) Because your credit score is a MAJOR factor with some companies, an improvement in your credit may save you a LOT of money, but only if you request that they re-check it).

10.) Check on how much it would cost to add comprehensive coverage, collision coverage, or both to your vehicle. Surprisingly, some companies actually offer lower rates if you have comprehensive, collision, or both, than they do for liability-only policies. This is definitely counter-intuitve, but it is based on the same principle mentioned above regarding higher BI limits–the insurance company may view you more favorably (as far as risk is concerned) if you are an individual who would at least carry more than the basic coverage on your automobile. So, when you shop for quotes on a vehicle, you may want to check what the difference in price would be between liability coverage, liability plus comprehensive coverage, and liability plus comprehensive and collision coverage.

11.) Lastly, periodically contact your insurance company to see whether they may be able to place you with one of their underwriting companies that is designed for “better” drivers (“better” according to your insurer’s rating factors–they are not judging your “goodness” or “character” for this!). Normally, insurance companies (particularly the larger companies) have multiple underwriting companies (subsidiary companies) that specialize in underwriting different categories of drivers based on the company’s risk assessment of you. If you are not in the insurer’s “best” underwriting company (reserved for their “best” risks), you always have room for improvement with that company, and by simply asking to be considered to be placed in one of the underwriting companies for “better” drivers, you may be able to save yourself a LOT of money over the years. Note: You may only have a real chance of being placed in a better underwriting company if your driving record has improved dramatically over the last couple or several years or if, in the states where credit may be used, your credit score has improved. Either or both of these improvements may give you leverage with the insurance company to request that their underwriters review your policy for placement with a better underwriting company.

 

 

Twelve Ways to Save on Your Auto Insurance Policy

September 9, 2017 · Posted in General · Comment 
auto insurance
Want to save money on your car insurance? Here are suggestions from the Insurance Information Institute (III). 

1. Comparison shop. Use consumer guides online from your state’s insurance department. These guides tell you what coverages you need and show you sample auto insurance rates, usually from the biggest companies. Get auto insurance quotes from at least three insurers.

2. Ask for higher deductibles. When you file a claim, a deductible is the amount of money you pay before your auto insurance company pays for the rest of the damage. Higher deductibles mean lower premiums. For example, increasing your deductible from $200 to $500 on collision and comprehensive coverage could reduce that portion of your premium by 15 to 30 percent, according to III.

3. Drop collision and/or comprehensive coverages on old cars. If your car is totaled in an accident, you receive the actual cash value of the car. Although auto insurance companies use their own criteria to determine fair market value for vehicles, you can get a ballpark estimate from Kelley Blue Book. For older cars, it may not make financial sense to pay premiums over many years to maintain collision and comprehensive coverage.

4. Buy a “low-profile” car. Cars that are expensive to repair or that have a high theft rate have higher car insurance rates.

5. Take advantage of low-mileage discounts. Some auto insurance companies offer discounts to drivers who put fewer than a predetermined number of miles on their vehicles each year. And with the high price of gasoline, driving less makes financial sense.

6. Consider auto insurance rates when making a move. Car insurance rates tend to be lowest in rural communities and highest in cities, where more traffic congestion occurs and the likelihood of theft increases.

7. Ask about discounts for air bags and other safety features. Your insurance agent can tell you know about these discounts when you purchase your coverage. Most policies give discounts for air bags.

8. Ask about anti-lock brake discounts. Some states require insurers to give discounts for cars equipped with anti-lock brakes. Some auto insurance companies give the discount no matter where you live.

9. Ask about other discounts. Some insurers offer discounted auto insurance quotes for insuring more than one car, having no accidents in three years, being a driver over age 50, taking driver-training courses, having anti-theft devices and being a long-time customer. Plus, remember good-student discounts when you are insuring a student who drives.

10. Buy your home and auto policies from the same insurer. This will entitle you to a “bulk” discount.

11. Find out about group discounts. Sometimes group auto insurance policies are available through large employers, professional groups and other organizations.

12. Maintain good credit. Your credit rating may affect your car insurance rates. Use of credit scores in setting auto insurance prices varies by state and insurance company, but statistics show that drivers with good credit records tend to have fewer accidents.

Cheap Auto Insurance for Your Cars

August 20, 2017 · Posted in General · Comment 
auto insurance
Cheap auto insurance is the major issue for most of the peoples as cost of auto insurance is increasing day by day. So you would spent some time for searching the auto insurance company that will offer you the cheapest auto insurance quote for your car.Auto insurance constitutes the largest market of insurance in almost every country. As it’s required by the state laws in some of the countries and also safeguards the interests of the policy holder against the financial losses that may be incurred by him during his involvements in an accident. 

So you can find a variety of auto policies that are available in market but opting for cheap auto insurance you should consider some tips. There are legion of ways to get the cheap auto insurance for your car.

You can switch to auto insurance companies in order to obtain cheap auto insurance for your car or you can go for making some safety changes to your car in order to get cheap auto insurance for your car. Whatever you want to do, you would spent some time for searching the auto insurance company that will provide you the cheapest auto insurance quote for your car

But when you are buying a new car, the situation can change. You may or may not have any insurance policy. So whatever the case, when you are shopping for a new car is to make sure you have an auto insurance policy before you drive it.

Prior selecting any insurance company compare as many cheap auto insurance policies are possible. If you really want cheap auto insurance then it would be worth giving your time to look at some auto insurance companies and reviews.

While looking for cheap auto insurance for your car doesn’t stop your search at the cheap premium as these cheap premiums may not be as cheap in the long run if the auto insurance company wouldn’t come through for you when you need them.

Another factor to consider about cheap auto insurance is the amount of money a company spends on its advertising. Just remind you that the money that a company spends comes out of its customers pockets. A company which spends a lot of money for advertising cheap auto insurance may end up costing more money later also.

Cheap Car Insurance: Benefits of Being a Law-abiding Motorist

July 16, 2017 · Posted in General Articles on Car Insurance · Comment 
car insurance
You are responsible for taking care of your car and its health and at the same time you must be careful about yourself while driving it. You are getting good comfort and convenience by using your car but do you think about its safety and security. Now, people who take care of their vehicle are opting for cheap car insurance too often.

Generally, most of the people think that they don’t need car insurance because they take good care of it and nothing can happen with it. But this is the tragedy with misfortune that it is unforeseeable. In fact, anything can happen with your car despite of your great care. Your car is susceptible to car theft, vandalism, fire and road accidents. Cheap car insurance is always a good idea to avoid bad implications of any of these misfortunes.

In fact, car insurance is a legal requirement in the UK and it is an absolute minimum before venturing on to the road. You are required by law to have car insurance to cover your potential liability to other road users. The law requires every person using a motor vehicle on the road in the UK, or permitting others to use that vehicle, to be insured against damage by causing personal injuries to third parties. Previously, many drivers were avoiding car insurance due to high premium but now many cheap car insurance plans have come up with great benefits.

Most auto-insurance companies offer three types of cheap car insurance, third party only (TPO), third party, fire and theft and comprehensive car insurance. The TPO plan insures against accidental damage to a third party vehicle and injury to third parties. Third party, fire and theft include all the benefits of third party only with the addition of cover for fire, lightning, explosion, theft, attempted theft and taking without consent. Whereas, fully comprehensive car insurance covers against accidental damage to a third party vehicle and to the policyholder’s car, injury to third parties and liability to passengers in the policyholder’s car.

You also can get various hidden benefits and additional features with cheap car insurance and that is why most of the motorists are opting for it.

By: Allan

About the Author:

Allan Elvin is an MBA in Finance and has a rich experience of writing on topics related to finance. He professes special interest and expertise in cheap car insurance and in guiding you on its various details.

Auto Insurance Law in Maryland

June 18, 2017 · Posted in General Articles on Car Insurance · Comment 
auto insurance
Auto insurance in Maryland is required the state law for any driver. Minimal requirements to the auto insurance makes: scope of corporal damage-20 000 $ on the person, 40 000 $-for damage of several people, 15000 $-responsibility for damage of the property.

The department of independent auto insurance in staff is agency which adjusts system of auto insurance and protects consumers, guaranteeing material indemnification of losses cause in accident. If you have any claims to your auto insurance company you can address for the help in a department of independent auto insurance. The law of Maryland demands purchase of protection against a physical injury for the sum 2 500 $ for each person. However from purchase of it coverage it is possible to evade. Maryland law tell about thet all auto insurance companies,which sell or deliver motor vehicle liability or physical damage insurance policies in the state are required to enter into arbitration and settle all motor vehicle physical damage claims in accordance with an auto subrogation program sponsored by an arbitration organization chosen by the auto insurance owner requesting the arbitration. The law of staff says about that that if your auto insurance company wishes to cancel your auto insurance that it should warn you about it 10 days prior to expiry of the term.

The state law demands presence of the minimal auto insurance. But presently many auto insurance companies can offer the auto insurance of higher order. Such auto insurance will protect you from expensive repairs, medical accounts and litigations.

Auto insurance is required according to the law. There are some auto insurance companies which specialize on protection of drivers with high group of risk.

Auto insurance in Maryland not only operates behavior of insurers, but also protects the consumers. Be very cautious on road and adhere to laws of auto insurance in state.

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