Vehicle Insurance – Tips That Will Enable You Save Considerably

September 24, 2017 · Posted in General Articles on Car Insurance 

An affordable rate can be achieved in many ways. However, some of them could put you at risk. I don’t naturally support such options since they defeat the main aim of insurance in the first place. Bearing this in mind, I will only show you suggestions that will also have you well covered despite saving you much…

1. If you maintain collision and/or comprehensive for an old car which is not a classic, then you’re spending much more than would do you any good. This is because you’re compensated based on what is referred to the Kelly Blue Book value of your vehicle as at when you file a claim. So, you’ll get nothing if the book shows that your car isn’t worth a dime at the time of a claim.

So, stop frittering away your hard-earned cash. As soon as your vehicle gets old, stop collision and comprehensive coverage on it. This simple step will give you much savings and not compromise you in any way.

2. Several insurance providers will hand you a discount if a child on your auto insurance policy goes to college and does not drive the vehicle at that period. If your child is in college then you should talk to your auto insurance agent about the possibility of getting this discount. I must stress, however, that some insurers do not give this discount.

3. Reappraising your auto insurance policy once every six months is one sure way you can reducing your rates. It’s interesting to state that a lot of people still pay for things they needed yesterday but no longer make sense today. A good instance is a case where a couple leave their wedded daughter on their auto insurance policy for close to a year just because they forgot.

Furthermore, there are discounts you might have qualified for. There are as well coverage types that you might have outgrown.

Go through your auto insurance policy at least once a year. You might see a few things that are no longer necessary and make savings when you drop them.

4. A straightforward but effective way of reducing your premium is by authorizing an EFT (Electronic Funds Transfer). By doing this you authorize an insurance provider to automatically withdraw your payments from your account at specified intervals. This saves the insurance company in many ways including removing the cost of mailing payment notices and the cost of processing checks. This is why this gets you more affordable rates.

5. You’ll save by being loyal to an insurer due to the long term discount and accident forgiveness which they give to long-standing policy holders. Most insurers will give you a discount of about 5% if you stay with them for up to five years (some will give you once you stay for up to three.

The accident forgiveness discount means that your insurer will not raise your rates if you file just one claim. Insurers offer these as incentives to keep you with them since it serves them better too.

But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.

Let ussay, for example, that you will get a 5 percent (or $125) discount after your third year with an insurer where you current auto insurance premium is $2,500.

But because of inflation, insurers may have to re-adjust their rates to contain those changes. But if you are someone who does routine shopping for auto insurance you will very likely get an insurer within those years of waiting who’ll give you a similar coverage at a lower rate. Then it would be anything but wisdom to stay put because you want to qualify for a discount down the road knowing that the expected discount is less than savings you’ll get immediately if you switch.

You’ll most likely pay less if you make out time to shop right because there are hundreds of auto insurance companies around. You can only know if this is true for your profile when you get and evaluate quotes from many different auto insurance companies to see where your interest is better served..

6. There are useful extras and there are those that do nothing but just inflate your rate. A good example of the later is adding a towing service to your policy. By the way, your credit card might already offer this as a benefit so check.

Even if this is not the case with your credit card company, you’ll still get better service and save more if you exclude towing from your policy and you a dedicated towing company instead.

7. The internet makes the cost of doing business low. Expect to save up to 15% (when compared to what you’ll pay if you went to a physical office) if you get your quotes and buy your policy online.

This makes it obvious that you’ll save a lot more if you buy online.

While you do this make sure you give correct details. If you try to cheat you’ll lose big time on the long run (Your insurer will be covered by the law if they cancel your policy on the grounds that you misrepresented facts).

If you choose to buy online, don’t forget to do due diligence: Check with your state’s department of insurance to ensure the company you’re buying from is licensed to sell auto insurance in your state. Don’t also fail to check their rating.

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