* Have you ever written a check for your car insurance...and wished it wasn't so much?
* Have you ever shopped for car insurance....and not been able to get your car insurance any cheaper?
* Do you have Teenagers on your Car Insurance Policy....and can't believe how much more you're paying than you used to?
* Have you been dropped by your car insurance company because of an accident or, because you've gotten too many speeding tickets?
* Or, are you a teenager or twenty-something looking for car insurance and can't believe how much you're going to have to pay for coverage?
If you answered yes to any of these questions, you're not alone. In fact, almost 98% of U.S. Drivers are over-paying for their Car Insurance.
So, how do you stop over-paying?
By simply doing two things.
1. Change Your Coverage To Get The Absolute Lowest Car Insurance You Can - Expected Savings: Up To 45%.
2. Shop Around For Car Insurance - Expected Savings: Up To 15%.
And what can you expect from doing these 2 simple things?
How about gutting your car insurance costs by up to 55%! In dollar terms....that can mean $10,000 in savings over the next 10 years.
Okay - here's how this works. Just take some notes on the changes we suggest below - then do some shopping for car insurance.
**Here's a helpful hint - if you have a copy of your current Car Insurance Policy, or can get one, follow along. You'll be amazed at the total dollar amount you've been throwing away.
Friday, May 16, 2008
Step 1 - Changing Your Car Insurance Coverage
1. Change Deductibles For Comprehensive & Collision Coverage: Change your deductible to a minimum of $500 - preferably $1000. Why? Because your overall premium will drop by up to 30%!
2. Change Property Damage Liability: Property Damage is not damage done to an automobile but rather "property" like a street sign or electric pole.
Many of you are currently paying for $100,000 of Property Damage Coverage. In almost all cases, Property Damage Claims can be taken care of with only $50,000 of coverage. And if you have little or no net-worth, drop this coverage to $25,000.
Here's what to look for on your Policy - Many of the Policies today will have your Liability Coverage's listed like so - 50/100/100 - The first two numbers refer to Bodily Injury Liability Coverage. The 1st number is the dollar figure covered per person. The 2nd is the dollar figure per accident.
The 3rd number is the Property Damage Liability....that's what you need to change. What does yours say? Save some money - get the minimum coverage your State requires. Make sure you lower yours when you get a new car insurance quote!
2. Change Property Damage Liability: Property Damage is not damage done to an automobile but rather "property" like a street sign or electric pole.
Many of you are currently paying for $100,000 of Property Damage Coverage. In almost all cases, Property Damage Claims can be taken care of with only $50,000 of coverage. And if you have little or no net-worth, drop this coverage to $25,000.
Here's what to look for on your Policy - Many of the Policies today will have your Liability Coverage's listed like so - 50/100/100 - The first two numbers refer to Bodily Injury Liability Coverage. The 1st number is the dollar figure covered per person. The 2nd is the dollar figure per accident.
The 3rd number is the Property Damage Liability....that's what you need to change. What does yours say? Save some money - get the minimum coverage your State requires. Make sure you lower yours when you get a new car insurance quote!
Wednesday, May 14, 2008
What is Auto Insurance?
Overview
Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
taken from wikipedia
Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
taken from wikipedia
Tuesday, August 29, 2006
Recent FAQ in Car Insurance
1. How does a car insurance company set my premium?
They take a lot of factors into consideration. These include where you live, the kind of car you drive, your age and gender, the level of coverage you want, and your driving record, among other things. The last two factors have the biggest influence on the premium you pay, although all are important.
2. When can my premium rates increase?
Whenever you renew your policy, apply for a new one, change drivers or vehicles, or are involved in an accident or traffic violation. When your state allows a rate increase, all the insurance carriers will likely raise their premiums. (This has happened a lot in recent years, and is expected to happen even more in the future, so don't be suprised.)
3. How do speeding tickets or "points" affect my insurance rates?
If your provider asks for an update on your driving record, points or tickets will increase your rate. But you aren't bound to inform them of a ticket, so if they don't increase your premium, just sit tight. (But always report an accident immediately!)
4. When do insurance companies check driving records?
Whenever you apply for a new policy, they'll check. If you're renewing your policy, or adding a new vehicle or driver, they might.
5. Will my premium increase if I report an accident to my insurance company for which I was not at fault?
It shouldn't. However, if you've had several such accidents in a relatively short period of time, your provider might assume that there is something reckless about the way that you drive, and increase your premium.
6. How much will adding a teenage driver to my policy cost?
Probably a lot. Teens fall into the age group that statistically drives the most dangerously. However, you might be able to earn a discount if your teen is a good student or drives an older model car. (And if the car is old enough, you won't need to carry collision and comprehensive on it, further reducing costs.)
7. How will having a kid in college affect my insurance rates?
If your kid is attending a school over 100 miles away without a car, your premium should decrease. However, if they'll be bringing a car with them, they should probably be listed as the vehicle's primary driver, and that may cause a slight increase in your premium.
8. Will marrying someone with a poor driving record affect my rates?
If you share the same policy, yes. But you could cut costs by getting two policies and carrying less optional insurance (collision and comprehensive) on the high-risk driver's vehicle.
9. Why do insurance companies ask for information on my credit history?
It's been shown that, all else being equal, drivers with poor credit are more likely to file claims than drivers with good credit. The theory is that people who are careful with one aspect of their lives (money), are more likely to be careful in another aspect (driving). It is, however, illegal for insurance companies to use this information in a few states.
10. How do I get the most car insurance for my dollar?
Keep your deductibles high and your liability limits high. You'll get a lot more coverage for your cash that way.
11. If someone borrows my car, are they covered under my auto insurance?
If they are a licensed driver with your permission to use the vehicle, yes.
12. Is my American auto insurance valid in other countries?
In Canada, it is. In Mexico it probably is. In the rest of the world, it isn't. However, Mexico's liability laws are a little different from ours, so it's not a bad idea to get a temporary Mexican policy if you'll be travelling there by car.
13. Will my policy cover me if I rent a car?
You'll usually automatically have the same level of coverage on the rental car as you do on your standard policy. (Check your policy for details.) Paying for the rental car with a credit card can offer even more protection. However, be aware, that in the event of an accident, the rental company may charge additional administrative, loss of income, and replacement cost fees that your standard policy won't cover. So buy the additonal insurance if it makes you more comfortable.
14. Am I covered for a car accident that happens in another state?
An American car insurance policy is good throughout the country. However, some policies change their coverage a little depending where you have an accident. (Michigan does this, for example.)
They take a lot of factors into consideration. These include where you live, the kind of car you drive, your age and gender, the level of coverage you want, and your driving record, among other things. The last two factors have the biggest influence on the premium you pay, although all are important.
2. When can my premium rates increase?
Whenever you renew your policy, apply for a new one, change drivers or vehicles, or are involved in an accident or traffic violation. When your state allows a rate increase, all the insurance carriers will likely raise their premiums. (This has happened a lot in recent years, and is expected to happen even more in the future, so don't be suprised.)
3. How do speeding tickets or "points" affect my insurance rates?
If your provider asks for an update on your driving record, points or tickets will increase your rate. But you aren't bound to inform them of a ticket, so if they don't increase your premium, just sit tight. (But always report an accident immediately!)
4. When do insurance companies check driving records?
Whenever you apply for a new policy, they'll check. If you're renewing your policy, or adding a new vehicle or driver, they might.
5. Will my premium increase if I report an accident to my insurance company for which I was not at fault?
It shouldn't. However, if you've had several such accidents in a relatively short period of time, your provider might assume that there is something reckless about the way that you drive, and increase your premium.
6. How much will adding a teenage driver to my policy cost?
Probably a lot. Teens fall into the age group that statistically drives the most dangerously. However, you might be able to earn a discount if your teen is a good student or drives an older model car. (And if the car is old enough, you won't need to carry collision and comprehensive on it, further reducing costs.)
7. How will having a kid in college affect my insurance rates?
If your kid is attending a school over 100 miles away without a car, your premium should decrease. However, if they'll be bringing a car with them, they should probably be listed as the vehicle's primary driver, and that may cause a slight increase in your premium.
8. Will marrying someone with a poor driving record affect my rates?
If you share the same policy, yes. But you could cut costs by getting two policies and carrying less optional insurance (collision and comprehensive) on the high-risk driver's vehicle.
9. Why do insurance companies ask for information on my credit history?
It's been shown that, all else being equal, drivers with poor credit are more likely to file claims than drivers with good credit. The theory is that people who are careful with one aspect of their lives (money), are more likely to be careful in another aspect (driving). It is, however, illegal for insurance companies to use this information in a few states.
10. How do I get the most car insurance for my dollar?
Keep your deductibles high and your liability limits high. You'll get a lot more coverage for your cash that way.
11. If someone borrows my car, are they covered under my auto insurance?
If they are a licensed driver with your permission to use the vehicle, yes.
12. Is my American auto insurance valid in other countries?
In Canada, it is. In Mexico it probably is. In the rest of the world, it isn't. However, Mexico's liability laws are a little different from ours, so it's not a bad idea to get a temporary Mexican policy if you'll be travelling there by car.
13. Will my policy cover me if I rent a car?
You'll usually automatically have the same level of coverage on the rental car as you do on your standard policy. (Check your policy for details.) Paying for the rental car with a credit card can offer even more protection. However, be aware, that in the event of an accident, the rental company may charge additional administrative, loss of income, and replacement cost fees that your standard policy won't cover. So buy the additonal insurance if it makes you more comfortable.
14. Am I covered for a car accident that happens in another state?
An American car insurance policy is good throughout the country. However, some policies change their coverage a little depending where you have an accident. (Michigan does this, for example.)
Wednesday, August 23, 2006
Tips for Saving Money on Car Insurance
Car insurance is required by all licensed drivers but many of them don’t know how to find the best rates available. Being complacent and purchasing car insurance without carefully investigating your options or maintaining the same car insurance for the remainder of your life could mean that you are paying too much for your car insurance. Comparison shopping, ensuring that you are receiving all the discounts you qualify for and maintaining a clean driving record are just a few of the money saving tips that can save you a fortune on car insurance.
Comparison shopping for car insurance, even after you are already insured, cannot be underestimated. It is critical that you investigate all of your options before choosing an insurance provider to ensure that you are getting the best possible rate on your car insurance. There are so many factors considered in car insurance policies such as where you live, your driving record, your age and the type of car you drive just to name a few. With all of these factors to consider, it is very possible that you will find that there is a car insurance provider who will offer you a considerably lower rate than other providers.
Even after you have secured insurance for your car, it is wise to periodically check the rates that other providers will offer you. Car insurance as well as your circumstances are perpetually changing and you may find that the provider who is willing to offer you the best car insurance rate varies periodically. Many car insurance providers offer a host of discounts to their clients who qualify for these discounts. These discounts can relate to your driving record, safety features of your car, your age or other factors.
These discounts can result in a tremendous cost savings on your car insurance policy but while many insurance providers offer these discounts, they don’t always advertise them. This means that you may have to do research to determine what type of discounts you may qualify to receive. Carefully, review your car insurance policy to determine which discounts you are already receiving and then contact your car insurance provider to inquire about other discounts that may be available. For example if your driving record is devoid of accidents or tickets, you may qualify for a good driver discount.
Also, if your car has certain safety features such as daytime running lights, you may also qualify for car insurance discounts. Your age can also qualify you for certain car insurance discounts. Some insurance providers also offer discounts to those who insure their house with the same company as they insure their car. Taking advantage of this type of discount can save you money on both your car and home insurance. Being aware of the discounts that are available and ensuring that you are receiving these discounts, can save you a great deal of money on your car insurance.
Finally, maintaining a clean driving record is very important to receiving the best available car insurance rate. While it is true that each car insurance provider is unique in the factors that contribute to lower rates, the one factor that is consistent among all providers of car insurance is that a clean driving record is critical to your rate. Although accidents are sometimes unavoidable, it is imperative that you adhere to all traffic regulations and that you drive safely at all times. This will reduce the number of traffic violations that you incur as well as the number of accidents that you cause. Following these tips will help you to maintain a clean driving record that will keep the cost of your car insurance low.
Many drivers lament paying their monthly car insurance bill because they feel as though the insurance isn’t necessary. Although car insurance is a financial burden that seems superfluous, it does pay off if you are ever in a serious car accident that has significant financial ramifications. For this reason, you should never consider allowing your car insurance to lapse and it is recommended that you search diligently to find the best available rate on your car insurance.
Comparison shopping for car insurance, even after you are already insured, cannot be underestimated. It is critical that you investigate all of your options before choosing an insurance provider to ensure that you are getting the best possible rate on your car insurance. There are so many factors considered in car insurance policies such as where you live, your driving record, your age and the type of car you drive just to name a few. With all of these factors to consider, it is very possible that you will find that there is a car insurance provider who will offer you a considerably lower rate than other providers.
Even after you have secured insurance for your car, it is wise to periodically check the rates that other providers will offer you. Car insurance as well as your circumstances are perpetually changing and you may find that the provider who is willing to offer you the best car insurance rate varies periodically. Many car insurance providers offer a host of discounts to their clients who qualify for these discounts. These discounts can relate to your driving record, safety features of your car, your age or other factors.
These discounts can result in a tremendous cost savings on your car insurance policy but while many insurance providers offer these discounts, they don’t always advertise them. This means that you may have to do research to determine what type of discounts you may qualify to receive. Carefully, review your car insurance policy to determine which discounts you are already receiving and then contact your car insurance provider to inquire about other discounts that may be available. For example if your driving record is devoid of accidents or tickets, you may qualify for a good driver discount.
Also, if your car has certain safety features such as daytime running lights, you may also qualify for car insurance discounts. Your age can also qualify you for certain car insurance discounts. Some insurance providers also offer discounts to those who insure their house with the same company as they insure their car. Taking advantage of this type of discount can save you money on both your car and home insurance. Being aware of the discounts that are available and ensuring that you are receiving these discounts, can save you a great deal of money on your car insurance.
Finally, maintaining a clean driving record is very important to receiving the best available car insurance rate. While it is true that each car insurance provider is unique in the factors that contribute to lower rates, the one factor that is consistent among all providers of car insurance is that a clean driving record is critical to your rate. Although accidents are sometimes unavoidable, it is imperative that you adhere to all traffic regulations and that you drive safely at all times. This will reduce the number of traffic violations that you incur as well as the number of accidents that you cause. Following these tips will help you to maintain a clean driving record that will keep the cost of your car insurance low.
Many drivers lament paying their monthly car insurance bill because they feel as though the insurance isn’t necessary. Although car insurance is a financial burden that seems superfluous, it does pay off if you are ever in a serious car accident that has significant financial ramifications. For this reason, you should never consider allowing your car insurance to lapse and it is recommended that you search diligently to find the best available rate on your car insurance.
Car Insurance - How Can You Lower Your Premiums?
Many factors influence the premium for your Motor insurance policy. Your insurer will have asked you many questions whilst producing your quote - some of which will affect your premium and some will not. Below we discuss the key variables that are within the policyholder's control.
Consolidating policies
By insuring a number of vehicles with the same insurer, or by trying to take out home and life insurance through your car insurer, you may be able to secure a 'bulk buy' discount.
Location
A big influence on the cost of your car insurance is where you live. The chance of your car being broken into or stolen is a key concern for the insurer. More urban areas traditionally facing greater risk of theft and therefore tend to be more expensive than countryside locations.
Excess
By agreeing to pay a greater excess on each claim you can reduce your car insurance premiums. This is because you are reducing the liability of the insurer and therefore in return they are able to offer you a lower premium.
Your Vehicle
The cheaper and slower your vehicle the lower your premiums are likely to be. If you are looking to buy a new vehicle make sure you fully consider the cost of insurance - you may be able to buy the car but can you afford to run it?
Mileage
You can control your insurance premiums by restricting your annual mileage. However, be aware that if you exceed the restricted number of miles you'll then become uninsured!
Parking
Where you park your vehicle overnight is also very important to the insurers. If it is kept in a locked garage, you should be offered a lower premium than if you leave it unattended in the street.
Security
Security devices that prevent or hinder theft may also reduce your premium. Common examples include alarms and immobilisers, however, be aware that as we improve the quality of our security devices the thieves just become better at bypassing them.
No Claims Discount
Save up your no claims discount by avoiding making small claims upon your policy. After a set number of years, 4 or 5 typically, you'll often be offered the option to pay an additional small premium to protect your no claims bonus. This can prove very helpful if you subsequently end up having an accident.
Advanced driving skills
By taking an advanced driving course you may also be able to reduce your premiums. The Institute for Advanced Motorists and the Royal Society for Prevention of Accidents each offer membership which provides you with discounts for both the cost of driving courses and your car insurance premiums. Two key variables NOT within the policyholder's control.
Your Sex.
Women are statistically less likely to have an accident and, if they do, it's less likely to be serious. Because of these statistics women benefit from lower premiums. It is also worth noting that if you represent one half of a couple you should consider having the female as the primary driver with the male as the second driver.
Your Age
The older you are, the less likely you are to make a claim. As a result insurance companies charge lower premiums for more mature drivers.
One final piece of advice.
A large percentage of car insurance is now sold on the Internet. That's because it's convenient and cheap. Many insurers now give a further 10%-15% discount if you buy online.
How to choose Car Insurance?
Car insurance can be purchased direct or through an agent.
Buying Through a Local Agent
Steps:
1. Visit local agents' offices, ask for a rate quote and gauge responses.
2. Ask about "claims-free" discounts for time a policy is in force without a chargeable claim.
3. Ask about a "multiline" discount if you buy more than one line of insurance.
4. Ask about office hours and after-hours assistance.
5. Ask for company rating and financial information.
6. Determine if the company has agents and claims offices in other states if you travel extensively.
7. Ask friends and acquaintances about the company.
Tips:
+ Buy the most comprehensive coverage you can afford.
+ Buy from a local agent if you want personalized service.
+ Agents can represent one or more companies.
+ Beware of companies with agents who pressure you to pay for unnecessary coverage.
Buying Through a Direct-Market Company
Steps:
1. Ask for recommendations from friends who have purchased car insurance via an 800 number or the Internet.
2. Contact three to five different companies.
3. Ask for written proposals.
4. Ask about claim filing procedures.
5. Ask about earning claims-free discounts.
6. Investigate the company's industry rating.
Tips:
+ An AAA rating indicates strong financial standing. Settle for nothing less.
+ Consider a direct-market company if you feel comfortable with less personal service.
+ Make certain the representative knows if you reside in a "no-fault" insurance state.
Buying Through a Local Agent
Steps:
1. Visit local agents' offices, ask for a rate quote and gauge responses.
2. Ask about "claims-free" discounts for time a policy is in force without a chargeable claim.
3. Ask about a "multiline" discount if you buy more than one line of insurance.
4. Ask about office hours and after-hours assistance.
5. Ask for company rating and financial information.
6. Determine if the company has agents and claims offices in other states if you travel extensively.
7. Ask friends and acquaintances about the company.
Tips:
+ Buy the most comprehensive coverage you can afford.
+ Buy from a local agent if you want personalized service.
+ Agents can represent one or more companies.
+ Beware of companies with agents who pressure you to pay for unnecessary coverage.
Buying Through a Direct-Market Company
Steps:
1. Ask for recommendations from friends who have purchased car insurance via an 800 number or the Internet.
2. Contact three to five different companies.
3. Ask for written proposals.
4. Ask about claim filing procedures.
5. Ask about earning claims-free discounts.
6. Investigate the company's industry rating.
Tips:
+ An AAA rating indicates strong financial standing. Settle for nothing less.
+ Consider a direct-market company if you feel comfortable with less personal service.
+ Make certain the representative knows if you reside in a "no-fault" insurance state.
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